Member Article

North East cheese manufacturer to boost turnover by £10m

A North East food manufacturer has taken on new staff, increased its turnover and set its sights on new export markets after securing a £3 million finance deal.

Prima Cheese Ltd, of Seaham, County Durham, secured the £3m invoice finance deal with Lloyds Bank Commercial Finance in 2009, and the firm anticipates increased turnover of £35 million in the next year, up from £25 million last year, as exports boost profits.

This form of finance allows the company to borrow against client invoices, providing a flexible form of funding that can grow with the business.

In particular, the funding has helped the firm overcome fluctuations in raw material prices. The invoice finance facility has been in place since 2009, but has recently been increased to help the firm invest in its future growth.

Prima Cheese, founded in 1997, specialises in blending cheese to make pizza toppings and burger slices. With a staff of 60 based in Seaham, County Durham, it supplies cheese products to wholesale food and catering businesses across the UK, as well as Europe and the rest of the world.

Three years ago the company started to export to the EU, and is now trading with countries further afield including Peru, Lebanon, Iraq, Pakistan, Taiwan and Singapore. The company has hired 13 new staff in the last 12 months, which includes staff to boost the firm’s accounts, production and export teams. It is also looking to extend its current premises to increase production capacity at the firm and it is expecting to create more new jobs as a result.

Andy Davis, financial director of Prima Cheese, said “The business has been able to thrive in the last three years, with exports really helping to push us forward. We’ve seen impressive year on year growth, and are on target to deliver a revenue of £35m this year.

“Lloyds Bank Commercial Finance has been an important partner and a fantastic support during this time. It has recognised the profitability of the business and been able to provide us with flexible funding that means that when we see new opportunities we can chase them. We’re excited about being able to take the business into new export markets, and invest in our staff and premises to help us achieve that.”

Graeme Waddell, client manager at Lloyds Bank Commercial Finance, added: “Prima Cheese is a great manufacturing business, and one we are pleased to support. The firm has focused on developing quality products and delivering high levels of customer service. It is a great example of the kind of manufacturing business we are committed to supporting in the North East.

“Invoice finance helps the firm manage its working capital, meaning that it can invest in new staff, products and premises, by borrowing against outstanding invoices. We believe that the firm is set firmly on the path to success and we look forward to seeing it move into new markets in the future.”

Andrew Hopper, relationship director, North East & North Cumbria, Lloyds Bank Commercial Banking, added: “We’re delighted that Prima Cheese continues to go from strength to strength and have taken this opportunity to bring all their day to day banking business to Lloyds Bank. We look forward to continuing our support as the business targets further domestic and international growth.”

This was posted in Bdaily's Members' News section by Graham Vincent .