Telford egg producer Oaklands Farm Eggs has completed the refinancing of its existing debt and working capital facilities, moving all of its facilities to HSBC Commercial Bank.
The new arrangement provides the company with up to £28 million in a combination of term debt, asset finance and working capital.
The new relationship, led by John Barker, HSBC global relationship manager within the HSBC Midlands Corporate team, will see HSBC support Oaklands Farm Eggs’ investment programme to increase production capacity and upgrade facilities to further improve the welfare of its hens.
The firm processes about 500 million fresh, free range and organic eggs a year for a comprehensive range of retail, wholesale and food service customers, including Iceland, Aldi, Farm Foods, Bookers, Whitbread, Costco, Blakemore, Dairy Crest, Compass and 3663, which is supplying the eggs for the 2012 Olympics.
The company turned over £40 million last year and the new investment will give it the capacity to process nearly one billion eggs a year through the development of new barns and packing stations.
Elywn Griffiths, Oaklands Farm Eggs finance director, said: “We are investing significantly in the business to position ourselves for the future, not just for today, and it is important to have a banking partner that understands our business and industry. HSBC’s team appreciates the dynamics of the marketplace, the importance of building a long-term, sustainable relationship and the flexibility and scale of modern food production.
“We are totally focused on the welfare of our hens and the safety of our products.
“We believe the facilities we have installed, and will continue to install as we expand, make us a leader in care for bird welfare in the UK and in high volume food production.
“We have won numerous awards for the innovations we have introduced to egg production and the welfare of our hens and we aim to receive similar recognition going forward.”