County Durham-based Ebac secures £4m facility from Cynergy Business Finance
Leading UK manufacturer, Ebac, has secured a £4m asset-based lending facility from Cynergy Business Finance (CBF) to fuel its expansion and sustainability initiatives.
With a rich legacy spanning over half a century, Ebac has become synonymous with innovation, quality, and community support. With a deep-rooted connection to County Durham, Ebac is currently the sole dehumidifier and washing machine manufacturing plant in the UK.
Ebac’s visionary approach extends to the introduction of new heat pumps. Ebac produced its first heat pumps more than 30 years ago when the feasibility was not what it is today with Net Zero targets. Its unit includes a unique feature which reduces running costs without inflating the purchase price making it a very attractive proposition.
The business has also introduced a new Dehumidification with Heat Recovery (DHR) system, strategically placed in lofts to address moisture-related issues like dampness and condensation. By utilising advanced artificial intelligence, the new system minimises energy consumption by only running when required. Other systems run continuously even when the excess moisture has been removed.
In order to support this transformative journey, Ebac was introduced to CBF team by its financial advisor, TSF. Ebac and TSF worked with the CBF team to secure a flexible facility that complemented its current structure and would support its strategic growth plans. Ultimately, the CBF team were able to provide a £4m flexible facility, comprising a £2.5m invoice discounting facility and £1.5m inventory financing.
This new financial injection will play a pivotal role in the company’s expansion of its new product ranges, with a primary focus on the development and introduction of its cutting-edge heat pump offering.
John Elliott, chairman at Ebac Ltd, said: “I am delighted that Cynergy Business Finance has recognised the huge potential of our new products. Our innovative design teams spent time during the pandemic designing two products that address new legislation designed to make homes carbon neutral and free of damp.
“Both the heat pumps and DHR system represent the future for the Ebac business and our forward production and financial planning are based around bringing them to the market quickly in the second half of 2023. We were badly hit by the pandemic as sales fell and components were held up in the supply chain crunch, but we decided to push ahead with the R&D investment, the result is that, with CBF’s support, we are ready for the market and mass production will start soon.”
Dan Burton, executive director at Cynergy Business Finance, said: “We are thrilled to partner with Ebac to support them on this next stage in their growth journey. John and the team’s longstanding reputation and dedication to innovation stands Ebac well in this next stage, particularly given the team’s focus on sustainable practices and innovations. We look forward to witnessing their continued success and impact on the British manufacturing sector.”
Alan Anderson, director at TSF finance, added: “The outstanding growth and profound action by Ebac throughout its long history is testament to the strength of its team. Witnessing the strong relationship between Ebac’s visionary approach and CBF’s financial expertise has been truly inspiring. This collaboration is a testament to what can be achieved when visionary leadership meets strategic financial support, and the opportunities this can unlock in-turn.”
