Caple supports the Biopharma Group to acquire Easytesters

Alternative SME credit specialist Caple has helped Biopharma Group, a leading biopharmaceutical company, to access a £1.25m eight-year unsecured loan.

Biopharma Group will use the loan to help acquire Easytesters, a hazard analysis testing firm, and implement its growth plans. The combined business will increase its presence in the food industry and sell an expanded range of products and services to existing customers.

Firms such as Biopharma Group find access to secured lending a challenge because their business is based on intangible assets, such as intellectual property. Banks generally need tangible assets to put up as collateral for loans, so raising additional finance for growth was not open to them.

Sean Brophy, UK country manager of Caple, said: “Biopharma Group is a successful business with a strong international presence. However, because it has limited physical assets to use as collateral, its traditional lenders were unable to support the acquisition of Easytesters. Our deal demonstrates how unsecured lending helps UK SMEs to grow, by opening new finance channels, without having to give up ownership and control by issuing equity.”

Andrew Cowen, chairman of Biopharma Group, said: “Biopharma is a growing business with a clear plan to continue expanding. But finding the right kind of finance to support growth has been a challenge. Options for debt funding are extremely limited for UK SMEs.

“Caple is unique in the market for providing genuinely unsecured credit, which is both simple and transparent, and sits on top of our bank finance. Our deal with Caple enables us to support our purchase of a great technology in Easytesters, realise its full potential through our existing business and to grow.”

The Biopharma Group sells diagnostic and processing instrumentation and development services to stabilise the protein in diagnostic testing, vaccines and food. Employing 100 people, the company operates internationally, primarily in the pharmaceutical and food industries.

Easytesters enables food and drink manufacturers to more quickly and easily monitor food-grade stainless-steel tanks for potential defects. With more accurate monitoring, manufacturers are able to better maintain equipment and production processes.

The acquisition of Easytesters supports Biopharma’s plans to increase its profile in the food industry, with strong growth potential. The enlarged group will initially focus on increasing its penetration of the diary, brewing and juice markets worldwide.

Caple is the UK’s first firm to offer access to long-term unsecured lending of up to £5m based on the future cash flows of the SME. It requires no collateral or personal guarantees as security. The loans also work alongside existing bank lending, meaning firms can have access to more funding than they would get from their bank alone, but allows them to maintain their existing bank relationship.

Caple’s technology platform supports a network of accountants and financial advisors to SMEs that use it to identify suitable borrowers and create the materials used in the process. This enables an efficient and robust credit process.

Andy Coghlan, partner at corporate finance firm WK Corporate Finance, who advised Biopharma Group, said: “With an eight-year term, the finance Caple offers access to is an ideal funding solution for Biopharma Group. It allows the business to integrate and then invest in the growth of Easytesters without the cashflow pressures of more traditional, shorter term, banking facilities.”

The loans Caple facilitates are part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform, which enables SMEs to access funding from institutional investors. BNP Paribas Asset Management aims to provide €1bn per year in funding to SMEs across Europe.

Assetz Capital lends £1.5m to Aspire Homes

Marketplace lender Assetz Capital has provided a £1.5m loan to Aspire Homes to fund the development of eight houses in Derbyshire.

The housing development, which is based in Glossop, will consist of a five-bed detached house, five four-bed detached houses and a two three-bed semi-detached houses. The development is situated on the edge of High Peak, close to local amenities and the railway station, and is due for completion in March this year.

Aspire Homes has been working in the property development sector for 30 years and is a family business working in and around the Greater Manchester and High Peak areas.

The £1.5m loan was used to fund the development of the houses, with the deal initially being introduced by broker PD-Financial.

Since 2013, Assetz Capital has lent over £965m to UK SMEs and housebuilders. As well as funding housing developments, the company also fund projects such as commercial properties, care homes and purpose build student accommodation (PBSA). The marketplace lender funded new housing projects last year representing the equivalent of 1 in every 100 new homes built.

Mark Davidson, regional director at Assetz Capital said:“It’s been an exciting process supporting Aspire Homes with this development in Glossop and I’m looking forward to seeing the completed site in March. We were keen to help Aspire in order to increase the availability of houses across the region and in turn aid the local economy by making Glossop a prosperous place to live for families.”

Paul Whitehead, managing director of Aspire Homes, said:“Working with Mark at Assetz Capital has been great throughout, he has understood our vision with the need for larger houses in Derbyshire and supported us during the entire process. Assetz Capital’s knowledge of the market and overall desire to support housebuilders has really helped us feel valued and we look forward to continuing our relationship with them in the future.”

Full steam ahead for new leisure destination in Pickering

A £1m innovative glamping and leisure complex, next to the popular North Yorkshire Moors railway, is on track to be completed in Spring with £800k funding from Reward Finance Group.

The three-acre site, which is being developed by husband and wife team, Paula and Alex O’Donnell, will offer nine quirky glamping units housed in converted railway freight wagons and guards’ vans. In addition, there will be a central reception building containing a restaurant, café, shop, exhibition and meeting space, toilets and showers, and a three-bedroom manager’s apartment.

The complex, aptly called the Engine Shed, is ideally located next to Pickering station at the start of the UK’s longest and most picturesque heritage steam railway, which attracts more than 350k visitors a year. It will therefore give people the chance to experience the steam engines in operation up close.

Speaking about the scheme, Paula O’Donnell, said,

“The site formed part of the family’s fish farming business, but the lake was filled in a number of years ago. We turned part of the land into a car park for the station but there was still a significant amount of land which was not being used.

“We identified an excellent opportunity to make the most of such a strategic location by creating a unique and exciting leisure destination which would appeal not only to rail enthusiasts but families too.

“However, to create such an innovative scheme requires a huge investment and we are grateful to Mark Tudor at Tudor Financial for introducing us to the team at Reward Finance Group. Dave Jones of Reward visited the site, saw the potential and quickly bought into our vision. We were impressed that the £800k funding facility was set up quickly, without having to jump through hoops, so we could progress the project to ensure we were open for the forthcoming season.”

Dave Jones, joint managing director of Reward Finance Group, added,

“Paula and Alex have developed a number of successful businesses but, like many other entrepreneurs, they have a significant amount of money tied up in fixed assets.

“I am confident the glamping and leisure venue will prove to be a big success. It is going to be a top-quality scheme, in a superb location which already attracts an enormous amount of people throughout the year. Paula and Alex are 100% committed to making a success of the Engine Shed and it was an easy decision for Reward to buy into their vision and to provide financial support to make the project happen”

Full speed ahead for Welsh automotive business

ThinCats, the leading alternative lender to mid-sized SMEs has facilitated a 7-figure loan to Innovative Repair Group (iRG).

Based in Cardiff and with a geographical footprint across South Wales, Bristol and Hereford, iRG is the seventh largest independent network of accident repair centres for motor vehicles in the UK. Since 1999, their body shops have worked alongside some of the UK’s leading car manufacturers, insurers and accident management companies, carrying out repairs on all makes and models and light commercial vehicles.

Employing more than 270 team members across their 11 sites, the funding has supported the future succession planning for the business and enabled the founder Stephen Peart to exit the business. The deal was led by the experienced Senior Management Team which includes Lee Wallbank, managing director, Daniel Lewis, head of finance, Phil Dawson head of compliance and HR and Joseph Moore, head of commercial with advice from Lexington Corporate Finance.

Alison Whistance headed up the funding team at ThinCats, working closely with lead advisor Thomas Edwards at Lexington Corporate Finance with the legals led by Ben Moylan at Freeths banking team in Bristol and Gemma Davies at Hugh James in Cardiff, who advised management.

Lee Wallbank, managing director, Innovative Repair Group: “We’re delighted to secure this deal with ThinCats. For more than 20 years, the business has grown a strong and trusted relationship with car manufacturers and insurers. Working with blue chip companies such as Admiral, Direct Line, LV and Vizion means we’ve been able to build strong organic growth, in addition to a number of acquisitions in recent years. We’re looking forward to a strong start to 2020 and would like to thank everyone involved with us in this journey. A special mention and a huge thank you to Steve Peart for allowing us the opportunity to build on his legacy.”

Thomas Edwards, director, Lexington Corporate Finance: “We are delighted to have advised the management team on this transaction. iRG is an excellent business with a great customer base and strong reputation in the market place. We worked closely with the Management Team to refine its business plan and projections and structure a funding package that allowed them to facilitate the MBO whilst also allowing the business to continue along its current growth trajectory”

Alison Whistance, director of business development, Wales and South West, ThinCats: “iRG is a fantastic South Wales business and I’m delighted to support the new management team at this exciting juncture. Look under the bonnet and you see a business with strong historic growth, a great team with a wealth of experience and key skills as well as excellent partnerships. They are well positioned in the market and continue to use technology to improve the customer experience and help develop innovative solutions to improve efficiency and turnaround times for their customers”.

ThinCats were introduced to iRG by Lexington Corporate Finance. Law firms Freeths and Hugh James provided legal support for the deal.

Hope Capital completes complex £4m deal on country house

Hope Capital has started the year with a bang with a complex £4m deal. Hope Capital completed the £4 million loan on a magnificent multi-million pound four-storey country house, set in extensive land with a number of outbuildings plus recreational facilities.

The loan was required to repay an existing charge, on which the client was paying a high interest rate; Hope Capital also provided an additional £500,000 for business purposes pending the sale of the property.

The short-term nature of the loan complexities around multiple planning permissions, together with the client’s status made it challenging for him to access mainstream finance. However, Hope Capital was able to get comfortable with the intricacies of the case, by researching every facet of the property, the client and their previous transactions combined with full due diligence.

While the loan application was in process, the client’s business interests required him to spend much of his time overseas and in different time-zones. Hope Capital overcame this by using video-conferencing, ensuring contact was maintained throughout the loan process so that any issues were ironed out without him needing to be in the country. This significantly sped the case up.

Although the planning and legal elements of the case were complex, Hope Capital’s flexible approach enabled these to be rapidly overcome.

Commenting on the deal, Gary Bailey, managing director of Hope Capital, said: “This was a complicated deal but with Capital B as the client’s broker, the client, solicitors, planning experts, valuers and insurers all working together, Hope Capital showed once again that we can get deals done quickly and provide clients with the solutions they need.

“The deal threw up a number of challenges, however Laura Carr and the underwriting team used their combined experience to find an appropriate solution for the client.”

Andre Bartlett a director of Holborn based brokerage Capital B says, “I had been to a number of lenders who just could not deal with the complexity of this case. Then I approached Hope Capital and now wish that I had gone to them straight away. The team at Hope were incredibly helpful, they overcame every obstacle, working in partnership with lawyers and valuers as well as myself to help make the transaction as easy as possible. Many other lenders would have waited until my client was in the country to deal with everything which would have significantly prolonged the time to completion, but Hope Capital were happy to use video conferencing.

“I have nothing but praise for the team at Hope and they will definitely be the first lender I call for all future bridging loans. Thanks to the innovative thinking of BDM Steve Allen, we made this into a deal that made sense.”

Local furniture business eyes international growth

Stourport-on-Severn business, D-zine Furniture Hire International, has secured a seven-figure finance package to expand its international reach and increase local employment. The event and exhibition furnishing specialist, which works with customers across the UK and Europe, is also now able to purchase the premises.

The funding from Santander has allowed the business to purchase the premises from which it has been trading from for 9 years. D-Zine is also poised to employ 10 more people locally, with projected growth over the next five years to reach 50%.

The business was originally started in 2003 by sisters Leoni Amphlett and Betsy Ready and now works with major global brands including the London Olympics, Wimbledon, Rugby World Cup, British Summertime Festival and Farnborough Air Show. The family-run business specialises in high quality and stylish rental and hire furniture – from illuminated stools to bubble sofa and chairs.

Around a third of D-Zine’s order book is currently shipped to Europe, which it hopes will increase in its next stage of growth. Major export markets for the exhibition furnishing specialist includes: Berlin, Monaco, Geneva, Amsterdam and Barcelona.

Leoni Amphlett, company director of D-Zine Furniture Hire International, commented: ‘Purchasing our own premises was an exciting but daunting task that was a significant leap forward in our business. Santander was with us every step of the way and Anita Roberts made the process run smoothly and efficiently throughout the entire conveyancing procedure and still supports us now.”

Anita Roberts, business relationdirector, Santander Business, commented: “D-Zine is a truly specialist business that has seen rapid growth in the last ten years. Its proven track record of delivering great results for major international clients puts D-Zine in an ideal position to expand even further, and we are delighted to be working with them during this exciting time.”

Aldermore funds Manchester fashion and footwear brand

Aldermore, the specialist bank, has agreed a new funding deal with Northern Sole Supply Co Limited, the fashion, accessories and footwear brand specialists.

Northern Sole owns, distributes and licenses branded clothing, accessories and footwear to department stores, sports chains, fashion labels and about 400 independent stores across the UK, Ireland and Europe. The company works closely with footwear and accessories brands to enhance their sales by designing and distributing new products for them. Founded in 2016, the business is headquartered in Manchester and has a showroom off Brick Lane in Shoreditch.

Juls Dawson, co-founder of Northern Sole Supply Co Limited said: “Thanks to Aldermore, we have access to the cash flow we need to run and grow the business. Crucially, we now know that we have the capital to fulfill new orders to sustain our growth.”

Eyal Tzabari, co-founder of Northern Sole Supply Co Limited added: “Aldermore provided us with the clarity and support we needed to meet our funding needs and were able to offer a better, more flexible finance solution than other providers.”

Laura Poncini, senior relationship manager at Aldermore, says: “Northern Sole have been a very exciting company to work with. Juls, Eyal and others at the company are ambitious people who love what they do. You can feel their excitement at their business’ potential and we’re delighted to help them secure the cash they need to continue on their journey.

“The trade finance and invoice finance facility that was used was useful for Northern Sole as they import and export products from many countries abroad. Aldermore were able to provide the funds to pay for those goods upfront leaving cashflow free.”

Arbuthnot Commercial ABL provides all-asset facility for Pen Cutting Tools

Arbuthnot Commercial ABL has delivered a bespoke all-asset funding package to support the acquisition of Pen Cutting Tools Ltd by Threesixty Holdco 2 Ltd, an investment vehicle owned by John Whitfield, Peter Raybould and Simon Ling.

The facility, which consists of receivables finance, plant & machinery, property and cashflow funding, will also provide on-going working capital for the business. This acquisition forms an integral part of Threesixty Group’s M&A strategy.

Established in 1968, Pen Cutting Tools is a second-generation ‘super precision’ computer numerical control facility (CNC) based in Sheffield, offering wire erosion, grinding and hard turning precision engineering services. The business supplies a wide range of industries, including bearing manufacturing, automotive, machine construction, aerospace and education sectors.

Peter Raybould, director of Threesixty Holdco 2 Ltd, said: “Our thanks go to Arbuthnot Commercial ABL for their support with this acquisition. Their team made this transaction happen as a result of their experience, commitment, speed of response and genuine desire to win the business and get the deal completed. Asset based lending has proved to be a powerful tool, both in terms of generating the level of funding for the transaction and the additional liquidity required to drive the business forward.”