Genpower prepares for growth following £6m ABL funding
Genpower Ltd has successfully secured a new ABL finance package totalling £6m as it prepares for further growth post-pandemic.
The business – based in Pembrokeshire, Wales – has witnessed significant demand for its products despite several Covid-19 lockdowns since the outbreak last March.
The need for tools from both the consumer and general construction sector has been in high demand during that period, resulting in the business posting c.250% increase in revenues.
Now, after successfully refinancing a loan from an existing funder, the business is investing in additional stock, property and general system improvements ahead of further increased demand for its products and services.
Shawbrook Bank is supporting Genpower via a £6m ABL facility.
Roland Llewellin, managing director and founder at Genpower, said: “Each UK lockdown saw online sales take a significant step forward. We have been growing our D2C offering via Amazon, eBay and our websites. This is complimented by the onboarding of a number of major retailers promoting Hyundai Power Products.
“We had been in discussions about refinancing an older facility in order to position the business as best as we could ahead of an expectant period of additional growth due to our ever increasing product range and as the economy opened back up.
“We had previous experience of working with Shawbrook and this new ABL facility provides us with additional working capital headroom and places the business in prime position for growth. This will enable us to increase stock holding levels ahead of an expected increase in demand as well as some capital expenditure for both property and system infrastructure improvements.”
Roland added: “We’ve been able to repay our existing funder while Shawbrook’s finance has provided us with a larger but more flexible funding solution appropriate for an inventory led distribution business – incorporating everything into one ABL package.”
Established in 2006, Genpower Ltd is the sole UK distributer for Hyundai Power Products, which is the division incorporating generators, garden equipment and power tools amongst other equipment.
The business services both trade and general consumer clients through an omnichannel route to market.
Roland added: “Shawbrook did not disappoint. Their team took the time to fully understand the business, what we wanted to achieve and provided sound advice on how they could assist in not only supporting but enhancing the levels of growth we’d seen during the pandemic.
“The deal execution timeline was also extremely tight and Shawbrook were quick, flexible and provided certainty throughout the process which gave us all peace of mind that we were working with the most suitable lender for our needs.”
Oliver Jenkins, director at Shawbrook, said: “This project represented a great opportunity for Shawbrook to fund a well-established business which was already an existing client with whom we had been in regular discussion about their working capital facilities since taking on.
“The funding structure provides a more appropriate structure for growth, as well as additional cashflow headroom. This additional headroom in particular will serve to provide a significant boost to their capability to invest in an increased stock holding which, off the back of a strong year despite Covid, positions them well.
“The business has built a strong brand recognition with Hyundai and used that to develop its own consumer ranges, coupled with a focus on customer and after sales service. On behalf of Shawbrook, I am delighted to be able to support Genpower and its management team, and I am eager to see how it progresses as lockdown eases and we move into the new normal post-pandemic.”
