Member Article

ThinCats delivers £1m loan for MBO at Derby manufacturer

ThinCats is helping a Derby-based linear vibratory systems and parts handling business with a £1m loan to fund an MBO.

Riley Automation designs and manufactures a diverse range of linear vibratory and parts handling systems. They move goods – from pills to Pringles – along production lines.

Past customers include United Biscuits and Boots, and the firm’s top ten clients account for 48% of business.

Over 50 years old, Riley is also a long-standing operation with a well-established process and structure – the borrowers, Mick Sturgess and Andy Hooley, are knowledgeable about the business, having been with it for 25 years each and having working in virtually every stage of the process at some point in their careers. The pair hold all the key relationships with suppliers and customers.

As for dealing with ThinCats, Mick says: “it all went to plan. We got the funding we needed, when we needed it. It’s a good option for companies trying to raise cash.”

ThinCats credit analyst, Saahil Dhanak, said: “When we visited their factory, we were also very impressed with the quality of the machines and the variety of end users that they supplied.

“There was also a reasonable level of deferred consideration and the borrowers were willing to provide a good level of personal cash and guarantees relative to what they could afford.”

As to where the business goes in the future, Mick says: “It’s a well-established business, and we want to build on that, drawing in new customers and driving growth over the next five to 10 years.

“We’re also working with people in the robotics industry who require presentation of components to the robot cell. With years of experience building parts handling systems, we can offer a solution to suit their application.”

This was posted in Bdaily's Members' News section by Laura Jones .