RBS Group has provided £33M worth of funding to help boost UK fats and oils firm KTC Edibles’ organic expansion plans.
KTC claims to supply 250M litres of high quality cooking oils and fats annually to retailers, foodservice firms and manufacturers and imports, packs and distributes mainstream and ethnic food products globally.
The company has one manufacturing site in Wednesbury in the West Midlands, where it is also based, and one in Liverpool, employs 220 people and boasts an annual turnover of £200M. Half of its total sales are generated by customers in the foodservice sector, it claims. Flagship brands include KTC and Sea Isle.
“We are delighted with the support received from RBS,” said KTC md Jindy Khera. “The ABL [asset-based lending] facility is an essential requirement to allow us to develop a long-term sustainable future for the business, and the funding from RBS will allow us to fulfil our growth plans.”
The RBS agreement covers a £33M working capital and asset-based loan package, transactional banking facilities, import letter of credit and bonds and guarantees.
“ABL is an important funding option for growing businesses and it is becoming more appealing because it allows firms to use company assets to raise finance,” said Ian Bath, corporate development director at RBS invoice finance.
“In this case KTC have gained a flexible working capital facility based on their accounts receivables, inventory and property. We are delighted to fund such a high profile and well respected operator.”
Nick Randle, relationship director at RBS Corporate & Institutional Banking, said: “Food manufacturing is a key sector for RBS, and we are delighted to support KTC.
“One of the important things to the management team was dealing with one bank that could provide a complete funding solution tailored to meet KTC’s requirements.”