The Royal Bank of Scotland (RBS) Group has provided £33 million worth of funding to help boost the organic expansion plans of UK fats and oils firm KTC Edibles.
KTC claims to supply 250 million litres of high quality cooking oils and fats to retailers and food service firms. KTC also manufacturers, imports, packs and distributes mainstream and ethnic food products globally.
The company is based in Wednesbury in the West Midlands and has another facility in Liverpool. The firm employs 220 people and boasts an annual turnover of £200 million.
Around 50 per cent of its total sales are generated by customers in the foodservice sector. The manufacturer's flagship brands include KTC and Sea Isle.
Jindy Khera, managing director of company, said: “We are delighted with the support received from RBS.
“The asset-based lending (ABL) 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 includes a £33 million capital and asset-based loan package, transactional banking facilities, import letter of credit, bonds and guarantees.
Ian Bath, corporate development director at RBS invoice finance, said: “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.
“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 the group. He repeated Mr Bath sentiments, adding that he was happy that the bank could support KTC.
He added that one of the important things to the management team at KTC was dealing with one bank that could provide a complete funding solution tailored to meet the business’ needs.