Cheese company secures £1m loan to fulfil growing order book
A cheese manufacturer has secured £1m in debt funding from the Midlands Engine Investment Fund II, through its appointed fund manager Frontier Development Capital (FDC), to help it fulfil its fast-growing order book.
Nantwich Cheese Company supplies the catering and hospitality industries, schools, hospitals and food manufacturers and also makes products for retailers including Aldi’s ‘own label’ range of waxed cheeses.
The company sources cheese from British and continental producers then processes and packs it at its Whitchurch plant. It offers a full range of formats including sliced, diced, grated and crumbed and block cheese, along with blended cheeses ranging from traditional favourites to more novel varieties.
Nantwich Cheese Company was founded in 2009 by Wayne Morgan, who has over 40 years’ experience and is well known in the industry. He was later joined by his son Luke who had previously held senior positions in Nando’s grocery business, and who took over as CEO five years ago. Since then, turnover has climbed steadily, from £5m in 2019 to £12m in 2023 and is on course to reach £17m in the current year following a number of major new contract wins.
The company currently employs 31 people, having recently taken on eight new recruits, and expects to create five more jobs in the year ahead.
Luke Morgan, CEO, said: “Our success lies partly in our ability to provide a one-stop shop and offer a full range of products at competitive prices. As a smaller firm we are also very nimble and can respond quickly to customers’ needs and offer rapid turnaround times. After years of steady growth, 2024 is turning out to be a bumper year for us. The funding will provide us with working capital to fulfil the growing order book and continue expanding the team.”
Beth Bannister, senior investment manager at British Business Bank, said: “Supporting Midlands’ businesses with access to the finance options that help them grow and succeed is exactly what the Midlands Engine Investment Fund II aims to achieve. This latest investment in Nantwich Cheese Company demonstrates the fund’s continuing commitment to growing and scalable businesses in the region.”
Diane Watt, director at FDC, added: “The UK has a formidable reputation for its cheese but the industry has faced real challenges in recent years such as rising costs, disrupted supply chains and changing tastes. Luke and the Nantwich team have successfully navigated the changing landscape and taken the company from strength to strength. We are pleased to be able to support them in their growth plans.”
David Keenan of Nimbus Finance and Keith Knight at Alextra Group Accountants advised the company, along with Emma Johnstone at Hill Dickinson LLP.
The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
