BOCM Pauls finds money to continue growth
BOCM Pauls, one of the leading feed suppliers in the UK with an annual turnover in excess of £500 million (€557m), on Monday announced a deal with its bankers to be able to further continue its expansion programme.
Lloyds TSB Commercial Finance has made an additional facility of £77m (€85.8m) available to support the plans of BOCM Pauls.
James Powell, finance director with BOCM Pauls, said: "This improved funding package gives us the facility we need to support our growth strategy.
“Completing a refinance in this difficult climate is a major achievement and demonstrates the confidence that our bankers have in our business.”
Business development director at Lloyds TSB Peter Anderson said: "BOCM Pauls is a dynamic business with a forward-thinking management team. We as bankers are pleased to have committed to support the business over the next three years with an innovative financing solution that will enable it to continue to invest in its mills throughout the UK.”
Dairy sector in difficult times
Speaking to The Scotsman Powell said: "We have seen very few credit problems with either farmers or merchants in recent months. Most are paying their bills on time. However, as a feed supplier, we are concerned about the dairy sector.
"The mass exodus of producers which we have seen over the past year has now slowed to little more than a dribble. But if milk prices continue to fall, it seems clear that more dairy farmers will opt to sell their cows and move on to something else.”
BOCM Pauls is the leading feed manufacturer in the United Kingdom. It has a staff of 1,000 people and manufactures animal feed in 16 feed mills located strategically over the country.
Annual production exceeds two million tonnes and in a specialist plant 35,000 tonnes of specialist pre-starter and starter diets for young pig is produced aimed for export.
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