Member Article

Six-figure Lloyds Bank funding for St Leonards-on-Sea food manufacturer

BD Foods, a food manufacturer based in St Leonards-on-Sea, has purchased two new production lines to increase its capacity and service more orders, with the support of a £240k facility from Lloyds Bank.

BD Foods makes sauces, dressings and other condiments for clients operating in the aviation, hospitality, leisure and retail sectors.

With the support of a hire purchase facility from long-term banking provider Lloyds Bank Commercial Finance, the business bought two new filling lines.

This funding means that the company can spread the cost of the machinery over an agreed time period so that it doesn’t affect its working capital.

To allow the business to pay the deposits and receive the new production lines, Lloyds Bank Commercial Banking provided a bridging facility. This was then cleared when the hire purchase facility was agreed, leaving the business with no negative impact on its cashflow.

The business’ investment has already enabled it to secure a new contract with hospitality business Whitbread, and it is looking to build on this expansion with a factory extension later in the year. This will create up to 40 new job roles, growing its existing workforce of 84 employees.

Established in 2001, the business achieved year-on-year growth of 24%, and has an annual turnover of £8.8m. In line with its on-going expansion strategy the business is hoping to achieve similar growth in the next 12 months.

John Davis, managing director at BD Foods, said: “Businesses want to provide their customers with the highest quality condiments, and this is something that we can deliver. Due to the demand for our products, we recognised a need to invest in our infrastructure to move the business into its next phase of growth.

“We have worked with Lloyds Bank for a number of years, and their support of our plans and understanding of the logistics involved when purchasing European machinery has been instrumental in the smooth implementation of our new facilities.”

Darren Lansley, regional manager at Lloyds Bank Commercial Finance, said: “BD Foods has established a reputation within the food industry as one of the leading suppliers of condiment products. The business’ expansive client portfolio allows it to enhance its product line to cater to different audiences and stay competitive.

“By using a hire purchase facility to fund its new machinery, the business has avoided a large one-off payment and is able to spread the cost of the kit. We’re looking forward to working with the management team as the business continues to accelerate its growth plans.”

This was posted in Bdaily's Members' News section by Ellen Forster .