Bibby Financial Services (BFS) has completed a new funding package with Sampling International, a sample book manufacturer.
The £1.1m injection of funding has enabled the West Yorkshire business to undertake a management buy-in and will also provide ongoing working capital support.
Sampling International, based in Batley, manufactures sample books for upholstery ranges for leading high street retailers and manufacturers in the UK. At its manufacturing plant, manned by a staff of 130, Sampling International produces over 50,000 sample books per year as well as 300,000 carpet sample cards for the commercial sector.
“We needed an injection of capital to help fund the retirement of one of our director/shareholders,” said Stephen Hubbard, managing director, Sampling International.
“It was at this point that we turned to Bibby Financial Services, who we had previously worked with, to provide the funding we needed.
“We also looked at our ongoing financing position and worked with BFS’s corporate finance team, with whom we had previously worked, to secure a flexible funding package. The nature of our business and customers means that we often have significant peaks in the summer and in the lead up to the New Year. During these periods we have to increase production, sometimes bringing in extra staff.
“Having a funding partner with expertise in structuring flexible working capital packages is a huge advantage. Furthermore, having funding in place to support these peak periods gives the business a chance to plan better.”
The business is now expecting to hit a 10% growth target for 2017 and is considering possible expansion into other markets.
David McIntyre, BFS’ corporate manager, added: “Sampling International is a great example of the products and services that SME businesses create that often go under the radar.
“Having worked with them in the past, we already had a good understanding of the business and strong relationship with the directors. However, as with all businesses, it was vital to understand the trading cycle of their business, and the cash requirements. Through this we were able to provide a flexible multi product funding facility that will support the growth of the company.”