The Lakes Distillery reengages CapEx project after support from Secure Trust Bank
The Lakes Distillery, a whiskymaker with an artistic ethos, expects to see a 70% growth in the production of its single malt whisky in the next 12 months following the reengagement of its capital expenditure (CapEx) project, assisted by ABL funding from Secure Trust Bank Commercial Finance.
When the pandemic hit in March 2020, The Lakes Distillery, was forced to close its hospitality offering and temporarily put a pause on its CapEx project which plans to treble production.
Despite these immediate changes, the distillery was able to continue its production of single malt whisky, due to the flexibility of its agreement with Secure Trust Bank. Part of the firm’s £3.5m facility, which was agreed in March 2020, is secured against maturing single malt whisky in cask, giving the business confidence to continue production. The reengagement of its CapEx projects in Q3, assisted by Secure Trust Bank will also pave the way for it to increase whisky production from 130,000L of alcohol to a maximum of 390,000L.
The business has also prioritised its ecommerce platform to capitalise on the restrictions caused by the pandemic. The Lakes Distillery has seen an increase in ecommerce revenue of 180 per cent as compared to 2019. Two premium and limited release products, The Lakes Single Malt Whiskymaker’s Reserve No.3 and The Lakes Single Malt Whiskymaker’s Editions – Colheita, have already sold out.
David Robinson, chief financial officer at The Lakes Distillery, said: “The past year has been incredibly difficult, especially for businesses in the hospitality and F&B sector. Having the support of the team at Secure Trust Bank has allowed us to push forward with plans that are essential for the growth of our business long term, such as our capacity expansion plans. We’re very pleased to see this begin to pay off with such a large increase in production year-on-year expected in 2021.
“From the outset, Secure Trust Bank has taken the time to understand our business and the quality of our brand. The team has been supportive at every turn and willing to share its knowledge and contacts to help us continue with our ambitious growth plans.”
Paul Goodchild, director at Secure Trust Bank Commercial Finance, said: “The Lakes Distillery is a brand committed to quality in everything it does, from the products it produces to the relationships it forms. It is fantastic to see how the bespoke solution we provided has supported the business in the past year and we look forward to continuing to work closely with David and the team to help the distillery fulfil its growth ambitions.”
