Horticulture supplier William Sinclair has secured a ?28m refinance package towards the development of its new site at Ellesmere Port. It has also reduced pre-tax losses from the first six months of its financial year as it registered a significant uplift in sales during the second half.
The business, which supplies the likes of B&Q, Tesco, Wilkinson and The Garden Centre, has clinched funding consisting of a ?28m asset-based lending facility provided by RBS Invoice Finance (RBS IF). RBS IF has worked with RBS Corporate & Institutional Banking (CIB) on the deal.
It plans to use the cash for working capital as well as to enhance the development of the group’s new Ellesmere Port manufacturing facility. The new base is set to become its flagship location.
In December, it secured more than ?8m towards the Cheshire development.
The company has also generated revenue of ?46.5m in the year ended 30 September 2013. It was down from ?48.2m in the previous 12 months.
A good peat harvest in the summer of 2013 has resulted in healthy stock levels for the 2014 season, the company said.
William Sinclair’s pre-tax losses for the year totalled ?1.2m, compared with a profit of ?500,000 in 2012. However, this had climbed from?a loss of ?1.8m at the half-year stage?after it was hit by unseasonal weather and a poor harvest in 2012.
Chief executive Peter Rush said: “The modernisation of William Sinclair’s operations is gathering pace with the acceleration of Ellesmere Port’s development and ongoing investment into our market leading products. With the injection of new capital from the recent fund raising, this rate of progress can be maintained.
“The completion of this refinancing, which increases our total borrowing facilities significantly, positions the company to deliver the board’s objectives of greater operational efficiency, scale and growth.”
KPMG provided corporate finance advice to William Sinclair, and?Shoosmiths?advised RBS.