Fresh injection of funding fuels expansion for Newent firm
Gloucestershire-based Newberry International Produce has embarked on significant growth with financial backing from the Royal Bank of Scotland’s asset-based lending team and NatWest.
A £2.9m asset-based lending facility has been structured against the company’s invoices and inventory to assist the rapid growth of the business that has a turnover in excess of £10m. It has embarked on significant growth plans which include the addition of a new factory site next to the existing one on Newent Business Park in Newent, Gloucestershire which will be used to bring production over to the UK from Europe. This will in turn create 10 new jobs by the end of the year. International expansion is underway as the company is exporting its products to Australia, the Middle East and many European countries as well as the launch of a new frozen Protein Smoothie.
Newberry International Produce specialise in the import and export of an extensive variety of frozen fruit and vegetables for the food manufacturing sector and is owned by award winning entrepreneur Gill Pearson. It was Gill’s determination that saw her launch her own innovative product, selling frozen smoothie sachets in 2002 when she was 19 years old, after the idea was rejected by her then financial director at Newberry International Produce. Gill established a new division concentrating on the smoothie and juice bar industry and within six months was recording a turnover of £1million. Today Gill successfully runs Newberry International Produce which she purchased fully in 2012 and in 2014 launched its very own premium triple award winning brand Smootheelicious alongside her current white label production for other operators which provides fruit and vegetable pre-portioned frozen smoothie packs.
Gill Pearson, managing director of Newberry International Produce and Smootheelicious, said:
“This is a really exciting time for both businesses. The frozen fruit and vegetable market is continuing to expand as the focus remains on nutrition and healthy eating which is presenting us with a variety of opportunities, both at home and overseas. In response to this we are launching a new frozen protein smoothie which uses 100% natural ingredients and moves us into the health and fitness and nutritional markets. Opening a new factory based in Newent is also important and brings new jobs to my local area. Our existing production units are based on the continent but we wanted one here so that we can have product development at our fingertips.
“I am really pleased with support from the Royal Bank of Scotland’s asset-based lending team and NatWest. Due to the importing nature of our business we have to pay for stock up front and then can wait between 45-60 days for payment. We have been using an invoice discounting facility which has really helped with cashflow because it gives an advance on invoices. The new asset-based lending facility complements this really well and gives us added flexibility because it is secured against our assets so as these grow so does the funding line. The working capital provision from this facility gives us extra confidence to grow the business and is helping to support our growth strategy with the new factory and product development.”
Mark Tunley, business development director, Royal Bank of Scotland asset-based lending, said:
“We are pleased that we have been able to provide Gill with a funding deal that will support the growth strategies that are in place for both Newberry International Produce and Smootheelicious. The availability of working capital is an issue faced by most businesses therefore, borrowing to increase liquidity is a significant part of today’s corporate environment. Asset-based lending is a cost-effective and flexible alternative for companies because it is secured against company’s assets and in this case their inventory.”