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Bob: What has been the reaction of those who introduce business to you?

Stuart: As you know, we generate our business from a variety of sources and I am delighted to report that we have received a very balanced reaction to the news of our sale. Our key partners were reassured to hear that there would be no change to our operation and have pledged their continuing support on that basis.

Bob: Do you seriously believe that you can retain your independence?

Stuart: Absolutely. And if we did not believe that to be the case, the sale would never have taken place. The key issue here is that we have lost our independence of ownership but not our ability to provide independent advice. Factoring UK has been trading for over 13 years and we are proud of what we have achieved in consistently providing truly independent advice. That will not change and we are happy to be judged on our actions in the future.

Bob: David Robertson, admittedly, has always allowed his factoring companies a great deal of leeway. What degree of supervision will your investor exercise over your operation?

Stuart: We have received personal assurances from both David and Sir Michael Bibby that we will be left to carry on running our business with the minimum of interference. Our database and activities will remain ring-fenced from the rest of the group and Bibby will have no input into our broking decisions.

Bob: Is there a danger that the deals you offer to other factors will be considered not good enough for Bibby?

Stuart: If that is a subtle way of asking whether Bibby will get first refusal on all our deals, the answer is categorically no. We will continue to introduce our clients to the factors we believe are most appropriately placed to meet their needs – much as that may disappoint our competitors and the cynics!

Bob: How would Bibby react knowing that deals they would happily write are going to the competition?

Stuart: Providing independent advice is not just about knowing where a deal could be written, it is about recommending the most appropriate funder and solution to best satisfy the client’s ongoing needs. Bibby fully understands that concept and has bought Factoring UK with the intention of building upon its excellent brand and reputation for doing just that.

Bob: Will you be able to convince your clients that your advice is truly independent, especially if you steer the deal to Bibby?

Stuart: Should we feel it appropriate to introduce Bibby to a client – either in isolation, or alongside an alternative funder(s) – we will fully disclose our ownership and happily justify the reasons for our recommendation. Should that client remain uncomfortable, notwithstanding our disclosure, we will seek to offer an alternative solution. Honesty has always been our policy and we remain confident of being able to communicate and justify all our broking decisions.

Bob: Is this David’s answer to Ted Ettershank’s 300 new completions via the Internet channel?

Stuart: In our opinion, Ted Ettershank and David Robertson are two of the most visionary chief executives in the market. David’s decision to acquire Factoring UK was a bold move and I very much hope that he will eventually be able to reflect upon his investment with as much satisfaction as I am sure that Ted does with his internet strategy.

Bob: Is David trying to cut off the deal flow to other independents by buying up the brokers?

Stuart: I am not aware that David has any plans to buy up any other brokers. In relation to his acquisition of Factoring UK, he is well aware that any factor, including Bibby, that fails to meet the needs of our clients will struggle to receive regular introductions.

Bob: It would be fair to assume that your bank account is looking healthier, will this affect your motivation?

Stuart: Did Sir Steve Redgrave lose his motivation after winning his first Olympic gold medal?

My motivation has always come from taking on challenges and I am delighted that there will be plenty of those ahead of me for many years to come.

Bob: Why did the venture with Atlantic unwind? Has this not made you wary of culture clashes?

Stuart: In my opinion, Richard Hawkins and his team represent the most talented and capable risk managers and auditors available for hire in this market. I am proud of the role Factoring UK played in helping Richard to develop his business and our agreement to part company was down to the unacceptable conflicts of interest that would inevitably have arisen had we remained as shareholders post-sale.

It is a source of continuing amazement to me that some funders are prepared to risk confusing the priorities of risk and sales and I am delighted that those who are choosing to work with Atlantic are being rewarded with excellent service. It is also surprising to me how hard it is to find people who share the same business values and ethics as ourselves regardless of cultural differences. I learned a huge amount from Richard and his colleagues and many others would benefit from doing the same.

Bob: What difference will the resources of the Bibby Group make to your operation?

Stuart: We have always spent between 5-10% of our turnover each year on marketing and consistently invested in technology and great people whenever they became available. This has given us market leadership but failed to deliver the scale of operation to which we all aspire. Having access to the resources that helped create the largest independent factor and third most recognised brand is one of the most compelling reasons we agreed to sell.

Bob: Will you be investing heavily in an advanced internet channel to reach out to SMEs?

Stuart: I can confirm that we have been investing in our internet channel for over five years and successfully reaching SMEs throughout that period. I am proud of our vision in having adopted this strategy and look forward to continuing to expand our activities in this area.

Bob: What do you think of Xbridge’s operation?

Stuart: John Thompson originally had a meeting with Brad Liebmann to better understand his proposition in early 2002.

Soon after that meeting we realised that Xbridge would come to represent something very different in the world of corporate finance (and beyond) and crafting our reciprocal partnership agreement the following year was a defining moment in our development. Brad is one of the clearest and most focused thinkers I have met and my only surprise is that it has taken so long for many others to wake up to what he and his team have been saying.

Bob: What do you think is the biggest challenge facing the factoring broker today?

Stuart: Measuring up to our standards.

Bob: Will you be supporting the Bibby thrust into overseas markets or are your ambitions going to remain UK-based?

Stuart: I would not wish to disclose all of our plans at this stage but it has not escaped our attention that Bibby provides a wonderful platform for future development.

Bob: And finally, Stuart, have you, Kevin Weaver and John Thompson planned an exit route?

Stuart: The only planning we’ll be doing for the next few years is how to make Factoring UK even more successful!

Stuart Wilkinson, Factoring UK,
tel: 01323 411770

Comment from David Robertson, chief executive, Bibby Financial Services

David Robertson, chief executive of Bibby Financial Services, commenting on the acquisition, told Business Money: “The BFS group has, in recent years, embarked upon a challenging growth strategy which aims to take the business through the next 10 years. In order to achieve this growth BFS is continually looking for new opportunities to help to move the business forward, and I believe that it is BFS group’s visionary and innovative nature that will allow it to do just that.

The recent acquisition of Factoring UK was borne out of our ability to think creatively and is a related diversification of our business. Yes, it is a move into the broker market but, after many years working in the industry it is an area that we know and understand well.

Factoring UK, as we all know has a well-established brand among factors and discounters but a huge opportunity still remains for the team to increase its visibility across the wider small to medium-sized market. By becoming part of the BFS group the business will finally have access to the resources it requires to exploit its true potential.

BFS has known and worked with the team at Factoring UK for many years and is delighted that they have chosen to work with the group to help develop the business from a much larger platform. This acquisition will ultimately allow Factoring UK to invest and grow the business, whilst continuing to provide the truly independent advice that it has always done in the past and is so well-known for throughout the industry.

So, what is the ongoing strategy for the business? Factoring UK will remain as an independent factoring broker. Leads will continue to be generated under the Factoring UK brand and John Thompson, Kevin Weaver, Stuart Wilkinson and the rest of the team will continue to find the most appropriate home for that deal – whether that home is Bibby Financial Services or another funder. It really is business as usual.

And as everyone would come to expect from the BFS group, over the coming months and years we will continue to drive every aspect of our business and will, as ever, maximise every opportunity that we come across.

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