2015 Deals

2015a year of growth Discover how Asset Based Lending

helped our clients achieve their goals

At ABN AMRO Commercial Finance,

we are committed to communicating

the benefits of Asset Based Lending

(ABL) to as many businesses and their

trusted advisers as possible.

Our 2015 review highlights the diverse

range of companies that have used

ABL to boost cashflow and the

following pages provide a cross-section

of deals completed across numerous

sectors, helping them to leverage

funding, boost working capital and

invest in opportunities.

Our clients’ success stories, both

domestic and international, were made

possible thanks to a shared passion for

excellence across the Group, and our

multi-local solutions have gone from

strength to strength.

2015 also saw us continue our intensive

Customer Excellence programme. Its

success aided improvements to our

systems and processes, enabling us

to provide smoother, faster and more

seamless transactions, as well as

offering one of the lowest Debt Turn

days within the UK market.

We recognise speed is vital when it

comes to funding as it ensures orders

are met, services are delivered, and

opportunities are seized. The ABL

model itself is designed to provide the

financing companies need, when they

need it. The flexibility of ABL means that

structured working capital finance can

be uniquely packaged much faster than

traditional finance packages, to help with

unexpected challenges or periods of

organic and acquisitional growth.

As we move forward, we will continue

putting our customers at the heart of

everything we do. We will dedicate

ourselves to helping businesses both

here in the UK and across Europe.

Whether it’s a smaller business with a

turnover of £1m or a blue-chip global

corporation with a turnover in excess

of £250m, ABN AMRO Commercial

Finance has the reach, scope and

ambition to raise the funding they need

to realise their ambitions.

We look forward to working with

you in 2016.

With very best wishes,

Peter Ewen, Managing Director

meet the teamBirmingham

Guy WalshSales Director – North07909 886140 [email protected]

Ben PittamBusiness Development Manager 07780 957639 [email protected]

Cardiff

Kelvin ThomasSales Director – Wales & West 07742 514101 [email protected]

Cambridge

Michael DavisBusiness Development Manager 07990 675515

[email protected]

Haywards Heath

Ian Burman Sales Director – Central 07780 957648

[email protected]

Tony TydemanRegional Manager 07971 [email protected]

Phillip McleodBusiness Development Manager 07890 [email protected]

Leeds

James ElliottBusiness Development Manager 07780 957642

[email protected]

London

Rick OwensSales Director – London 07780 [email protected]

Steve KilbyBusiness Development Manager 07971 [email protected]

Lyle AmmonBusiness Development Manager 07984 [email protected]

Jamie O’NeillBusiness Development Manager07900 [email protected]

Manchester

David RushtonRegional Director 07973 [email protected]

Natalie JamesonBusiness Development Manager 07775 [email protected]

Nicholas RussellBusiness Development Manager07974 [email protected]

Milton Keynes

Robert KellyBusiness Development Manager 07930 [email protected]

Southampton

Ian MoodyBusiness Development Manager 07920 [email protected]

Deborah Bell Head of Sales 07984 [email protected]

business services

Growth

£650kHealthcareThis healthcare specialist required funding for NHS contracts and support for growth forecasts.

• Receivables FinanceFUNDING LINE

Turnaround

FUNDING LINE

£2mFacilities Management A phased restructuring and projected growth required additional funding support.

• Receivables Finance

Acquisition

FUNDING LINE

£6mVacant Property Maintenance & Security This private equity-owned business wanted to repay acquisition debts and shareholder loan notes with the repayments pre-agreed. Our breadth of knowledge and understanding enabled us to structure a bespoke funding solution.

• Receivables Finance • Cashflow Term Loan

Growth

FUNDING LINE

£750kFinance Working capital is vital for payroll companies to operate successfully and enable growth ambitions.


FUNDING LINE

Growth

£1mProperty Rental This London-based short-term residential letting business required working capital to continue its steep growth curve and fulfil its impressive ambitions.


Growth

FUNDING LINE

£450kElectronicsA tailored alternative to existing credit terms was required by this established business to benefit from higher funding lines and lower costs.


distribution

Refinance

FUNDING LINE

£2mMailing & DistributionAn established mailing and distribution solutions provider approached us in the midst of the business restructuring to support cashflow needs and expansion plans.


Refinance

FUNDING LINE

£6mElectronicsWhen our existing client was acquired by a larger company, we were able to replace the acquirer’s existing funding package with an enlarged facility with three operating companies to support the group moving forward.


Refinance

FUNDING LINE

PackagingIt’s always gratifying when a client returns to us and we were only too willing to welcome them back with a greater funding line than the incumbent provider.


£750kAcquisition

£2mHaulageThis successful, South Yorkshire-based company, with a strong financial performance and experienced management team, required the right funding package to facilitate its corporate restructure.

• Receivables Finance • Cashflow Term Loan

FUNDING LINE

FUNDING LINE

Refinance

£2mPost & MailingAn existing client saw its top debtor double in size, and therefore required flexibility from us to adapt and adjust its funding agreement to provide the service and limits required.

• Receivables Finance • Bad Debt Protection

Refinance

FUNDING LINE

£1.75mPrint DistributionWe were delighted to support the purchase of this long-established family business with a funding solution which enabled the transaction and safeguarded future working capital.

• Receivables Finance• Enterprise Finance Guarantee Loan

manufacturing

Acquisition

FUNDING LINE

£3mMouldingsWe were delighted to support our client’s share purchase in conjunction with a Birmingham-based equity provider, creating additional business for further growth.

• Receivables Finance• Property Term Loan

Growth

FUNDING LINE

£1.65mBedsThis manufacturer’s incumbent provider wanted to lower advance rates and fund availability just as the business was accelerating for growth.


Growth

FUNDING LINE

Home FurnishingWhen this manufacturer required additional financing to support growing sales, we were able to exceed expectations by providing an additional £500k of funding.

• Receivables Finance• Inventory Finance

£3m Refinance

£850kFoodThis family-owned manufacturer required refinancing due to restrictions on a new customer and benefited from increased lines and advance rates.


FUNDING LINE

Refinance

£1.65mLightingThis well-established and well-supported AIM-listed light manufacturer was seeking to release greater working capital for growth.


Growth

FUNDING LINE

£850kAerospaceWorking capital was essential in order for this well-established manufacturing business to thrive.

• Receivables Finance• Bad Debt Protection

recruitment

New Start

FUNDING LINE

£200kITThis Bristol-based new-start recruitment company required a bespoke funding solution which allowed flexibility and growth.


Equity Release

FUNDING LINE

£3.25mHospitalityEquity release along with increased working capital was the funding challenge we were happy to assist with.

• Receivables Finance• Cashflow Term Loan

Refinance

FUNDING LINE

£9.5mAcquisition

FUNDING LINE

£3mITTo support the acquisition of a Suffolk-based consultancy we provided a tailored solution to ensure a smooth transaction and ongoing liquidity.


Multi-discipline ProfessionalThis leading London recruitment company required funding against receivables and work in progress (WIP) which differentiated our offering and provided liquidity to finance future growth.


Refinance

£2mFinanceThe objective of this specialist consultancy was to improve upon the restrictive funding lines of its existing lender and release further working capital across its large customer base.


New Start

FUNDING LINE

£500kTech & ConstructionEstablished by a group of Dutch investors, this business required new-start support with protection, allowing them to focus on growth.


wholesale

New Start

FUNDING LINE

FoodA former MD of a business we currently provide funding to asked us to provide working capital for the super foods company he is now associated with. The company predominantly supplies European supermarkets.

• Receivables Finance• Bad Debt Protection

Acquisition

FUNDING LINE

£1mAutomotiveA highly-successful automotive spare parts business needed a funding solution which would enable a Management Buy Out and ongoing working capital.


£1m

Refinance

FUNDING LINE

£30mMaterials & PlantThis leading materials handling and plant hire Group required a key partner in a long-term ABL solution involving a six-bank syndicated facility – providing a total of £200m in finance.

• Receivables Finance• Trade Receivables• Plant & Machinery Term Loan

FUNDING LINE

Acquisition

£490kGrowth

£250kTelecommunicationsRecommended by an associate, this new telecommunications manufacturer knew exactly where to turn for working capital to kick start their new venture.


Clothing & SuppliesWhen this Derby-based office supplies and work wear business faced a challenging refinance, we were able to provide a tailored and flexible funding solution to enable the management team to focus on diversification and growth of the business.


international solutions

Expanding your ambitions across multiple

borders can leave you feeling stretched:

multiple partners, the complexity of cultures,

fragmented financial systems and the rigid

red tape of regulatory requirements.

But there is a painless way to drive new

growth throughout Europe. A solution that

flexes the muscles of all of your regions to

leverage the value of your assets.

Our core commercial finance services are:

• Full Cross-Border Finance

• Multi-Local Commercial Finance

Full Cross-Border Finance allows

your assets to be cross-collateralised

and centrally managed. Funding is

maximised by leveraging your Group

strength. We can establish one Group

facility under a single legal agreement,

funded through a lead agent structure

that lends directly to your organisation.

Simple and highly versatile.

Multi-Local Commercial Finance is a

variation to Full Cross-Border Finance

as we oversee all regional agreements

to operate as a single, joined-up

partner, giving autonomy to your local

management teams.

Our specialised teams ensure that the

process runs smoothly, minimising set-

up costs and reducing timelines. With a

passion for partnership, we shape each

solution and mould it to your needs.

Sustainable, seamless integration,

remaining flexible as you grow.

Background

A prestigious international food company whose product portfolio comprises food service and processed meat industries for the retail sector. With a catalogue of client-specific products and innovative concepts, they supply retail, industrial and food service clients across the Netherlands, Germany and indeed, the globe.

Reason for Finance

Having recently streamlined its focus,

the business had a strategic agenda

to further rationalise its footprint in order

to reduce costs and increase profitability.

Releasing €125m working capital

through Accounts Receivables Finance

was key to its success and speed was

of the essence in order to facilitate the

business’s development and ambition.

The Solution

The transaction was very complex

due to the size of the facility but the

ACF Group worked quickly to structure

a multi-local €40m solution towards

the total requirement. Acting as Lead

Arranger and Collateral Agent, the ACF

Group worked fast to secure syndicate

support across two finance partners in

the UK and another in the Netherlands

to deliver the remaining finance sought.

Highlights

• Complex Cross-Border Commercial Finance structure, executed smoothly.

• Reliable – ACF Group acted as Lead Arranger and Collateral Agent across all three countries on behalf of the syndication, providing a global line of €125m (ACF €40m).

• Fast response – the process from decision to execution took just eight weeks.

• Collaborative – Successful Cross-Border Financing with seamless cooperation between all parties with tight deadlines and liaison with banking facilities such as trade finance.

Sector: Wholesale & Distribution

Product: Purchase of Receivables (Syndicate loan with two other international banks)

Facility: €125m, of which lead arranger ABN AMRO Commercial Finance contributed €40m

Reason for Finance

In recent years, the Group has developed

the business model to improve

efficiency, including restructuring the

financial facilities. The business was

feeling increasingly restricted by limits

on existing Senior Bank facilities and

additional finance was required to meet

its medium-term strategy of expansion

via acquisition. This financing transaction

featured the conversion €180m out of

€500m total debt into a Receivables

Financing facility, with the consent of the

incumbent banking syndicate.

The Solution

The ACF Group acted as Lead Arranger

and Collateral Agent to structure a

unique Cross-Border Receivables

funding solution across four territories

on a club deal basis. All four financiers

participated within a Loan Market

Association (LMA) standard legal

structure from the start in a shared risk

in their own territory, providing a global

line of €180m (ACF €80m).

Highlights

• Complex Cross-Border Financing across four territories in France, the UK, the Netherlands and Belgium.

• Collaborative – Working with three other financiers committed to participate providing a European factoring line.

• Reliable – the ACF Group acted as Lead Arranger and Collateral Agent across all four countries on behalf of the syndication providing a global line of €180m (ACF €80m).

Sector: Distribution

Product: Purchase of Receivables

Facility: €180m, of which lead arranger ABN AMRO Commercial Finance contributed €80m

Background

A large European distributor with a commitment to innovation and adapting its products for the marketplace. The business generates over €1.5 billion in revenues and has thousands of employees spread over numerous countries.

international solutions

Background

This fast-growing company operating across numerous territories produces consumer goods, focusing on innovative household products for cleaning, safety, cooking and personal care.

Reason for Finance

The business had growing international

ambitions but needed to find the right

kind of finance to turn this into a reality.

The funding solution had to offer the

flexible release of working capital to

adjust to seasonal influences as well

as provide the headroom required

for growth.

The Solution

The ACF Group worked together

to create a cross-border club deal

construction with Deutsche Bank. A

funding facility totalling €100m leveraged

via 90% advance on receivables and

65% advance against inventory across

our Group. The nature of this responsive

finance against revolving receivables and

inventory provided the business with the

ability to flex automatically with seasonal

highs and lows.

Highlights

• Cross-Border Finance across four territories in the Netherlands, the UK, France and Germany.

• Responsive – flexible finance which adjusts to seasonal influences.

• Collaborative – €100m leveraged via 90% advance on receivables and 65% advance against inventory across our Group.

• Reliable – the ACF Group acted as Lead Arranger and Collateral Agent across all four countries, successfully attracting participants to meet the funding requirements.

Sector: Manufacturing

Product: Purchase of Receivables and Inventory

Facility: €100m

the building blocks of success

case study:

MediaCityUK: One of the many iconic landmarks that have used Michelmersh products during construction

How the UK’s leading independent brickmaker survived the recession with the help of ABN AMRO Commercial Finance

Traditionally, construction is the first industry to

enter recession and the last to exit.

This was never more apparent than during the

2008 recession, when the industry experienced

one of the largest decreases in job numbers of

any UK sector and its output fell faster than the

whole UK economy.

With contractors unable to pay subcontractors

and suppliers, cashflow was in rigor mortis, while

at the same time, traditional bank finance was

becoming increasingly difficult to attain. By 2009,

the number of companies declaring bankruptcy

had risen to its highest level since 1995.

As house building took a hit, Michelmersh Brick

Holdings PLC, the UK’s largest independent

brickmaker, began to feel the pressure.

Established in 1997, the company had grown

through acquisition and organic growth into

a profitable and asset-rich business. But

with cashflow halting due to the recession,

Michelmersh needed support.

Laying the foundations of recovery

Michelmersh turned to ABN AMRO Commercial Finance

to release cashflow from debtors and other assets.

Paving the path to prosperity

Michelmersh is enjoying the benefit of the upturn in the

UK construction sector, having established a successful

operational structure over five years of hard work.

Profitability has increased dramatically, and the cashflow

generated has put the Group in a net cash position that is

set to improve with further sales of surplus assets.

Recently Michelmersh’s products have been used in

high-profile projects such as the Brentford Lock West,

the award-winning ORTUS Learning Centre and the ITV

Studios at MediaCityUK.

Thanks to ongoing support from ABN AMRO Commercial

Finance, Michelmersh has recently been able to end its

account as it no longer has borrowing requirements.

Morgan concludes:

“ ABN AMRO has always been supportive, even when our business recovered to the extent that we no longer needed their services. I will have no hesitation in reigniting our relationship if we need finance in the future.”

“ The team always demonstrated a willingness to find a solution to our funding requirements. They were innovative in identifying different arrangements for the various assets we had available, and were encouraging and flexible in putting structures in place. Whilst the arrangements were always properly secured, the Commercial Finance team were fair and measured in their suggestions.”

Stephen Morgan, Finance Director, on the decision to work with ABN AMRO Commercial Finance.

The arrangements implemented in 2008 were flexible

and were adjusted to reflect changes in the business,

such as the gradual reduction in borrowing that

accompanied improvement in its trading performance.

ABL provides an extremely valuable short-term solution for businesses experiencing financial pressure and helps create real success stories. One such example is Michelmersh.

“ We are really pleased that leading brickmaker Michelmersh has gone from strength to strength, and no longer has borrowing requirements. They leave us with our congratulations and very best wishes for the future.” Peter Ewen, Managing Director

We pride ourselves on customer excellence and our focus on their changing needs. We are dedicated to improving our service, which is measured annually in a satisfaction survey.

Using the globally acknowledged benchmark of a Net Promoter Score, we achieved +73 in 2015 – a significant increase from +40 in 2014. Proof once again, that our clients actively value our service.

But don’t just take our word for it...

clienttestimonials

“ ABN AMRO Commercial Finance has allowed our company

to expand in such a way that exceeded our original business

plans. We have begun to increase assets to support our

rapidly growing Plant Hire division based in Stansted, Essex,

which simply wouldn’t have been possible without the

support of ABN AMRO.”

Ben Haines Managing Director, Green Build Environmental

“ What distinguished ABN AMRO Commercial Finance was

their early understanding of exactly what it was we were

seeking to achieve. A number of funders showed significant

interest, but we felt from the beginning that they lacked the

insight shown by the ABN AMRO team.”

Peter Smith Chairman, TIA Treadsetter

“ Right from the start, I was impressed with ABN AMRO’s

willingness to truly understand the needs of my business –

a characteristic that has never diminished over the years.

In contrast to the attitude of my bank, ABN AMRO Commercial

Finance has consistently treated me as a valued client.”

Barry Seaman Owner, Richmond Caterers

“ I’ve found the team at ABN AMRO to be very helpful and

flexible around our commercial needs. For example, we have

been growing our sales with a particular customer and we

needed an increase in our concentration limit to maintain

funding, ABN AMRO was able to approve an increase in the

limit within a fortnight.”

Manish Mandavia Financial Director, Donatantonio

partnertestimonials

“ Given the new environment, modern Asset Based Lending

with a reputable lender (such as ABN AMRO) should be high

on the list of potential solutions for any trading business

seeking finance. The focus on the current assets of a

business and leveraging on these assets can often provide

funding lines in excess of other, more traditional forms of

finance, such as the overdraft, which often focus more on the

profitability and cashflow of the business.”

Richard BrierIsaacs Business Finance Ltd

“ ABN AMRO Commercial Finance has always been one of

the most knowledgeable and experienced ABL houses in

interpreting, quickly reacting to and working creatively to

accommodate the complexity and nuances of this type of

funding structure.”

Dave EdwardsLitmus Advisory

“ The team at ABN AMRO Commercial Finance is extremely

knowledgeable about the various ABL products and how they

can benefit businesses in numerous sectors. The experience

they posses means that they can quickly identify the right

solution to help the individual business needs and if they

can’t, they will be just as quick to come back with an honest,

down-to-earth appraisal.”

Pete BraceyBracey Accountants

“ I wouldn’t hesitate to recommend ABN AMRO

Commercial Finance – they really care about your clients’

needs and understand the needs of the adviser, and have

a huge amount of experience in providing creative funding

solutions that work.”

Matt Evans CEO, Essendon Capital Ltd

“ When advising our clients we often come across situations

where traditional forms of finance are not practical, but

invoice financing might be. We are always confident in

recommending ABN as they are able to explain the benefits

of the product in a way that clients understand, as well as

coming up with flexible solutions at competitive prices, and

providing a good, responsive service.”

Peter HedgethornePlus Accounting

“ The team at ABN AMRO Commercial Finance is amongst

the most experienced and knowledgeable in the industry.

For me they stand head and shoulders above the ever-growing

independent market, earning their place with a professional

approach that delivers a fast and informed assessment that’s

both consistent and utterly reliable.”

Odhran DoddCBW

Our ABL solutionsOngoing working capital and growth solutions

Receivables Finance

Invoice Discounting

Revolving funds needed to drive

business forward without waiting

30/60/90 days.

FactoringThis reduces in-house headcount and takes away stress by including credit control

to decrease late payment and allowing the business to focus on growth strategy.

This is often offered on a confidential basis to firms with a

well-established in-house sales ledger management team.

of overall ABL funding

is often made up of

Receivables Finance.

90%of invoiced value can be received up front.

The remaining balance is received upon

payment, minus fee – providing instant

access to working capital.

up to up to 60%

Bad Debt Protection An optional extra to either form of Receivables Finance to provide peace of mind and protection against customer insolvency.

Growth acceleration and transactional support

Revolving InventoryFunding against stock/inventory levels,

usually secured by floating charge.

Fixed-Term Loans This funding utilises plant and machinery or

property based on an independent assessment

of value on the open market within 3-6 months.

on raw materials. 30%

up to

on plant machinery.

80%up to

on property. 60%up to

on finished goods.50%

up to

Top-Up Loans A variety of loans including the government-backed Enterprise Finance Guarantee and Cashflow loans can enable

the necessary funding required.

Are you a B2B company?

or

Are you free from staged payments or

highly-contracted relationships?

Is the risk of dispute low?

Do you bill post completion?

noyes

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Is ABL right for me?

or

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Is your business being held back

by a lack of short/long-term

working capital?

Has your business identified a growth

or transitional opportunity – such as an acquisition?

0800 274 0702abnamrocomfin.com/contact-us

Investigate the right funding for your businessContact us today to learn how Asset Based Lending from ABN AMRO Commercial Finance can help your business achieve its ambitions in 2016.

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Does your business need

to refinance from existing

restrictive funding solutions?

At ABN AMRO Commercial Finance we see ourselves as partners – providing much more than finance.

If you would like to discuss your business challenges with a member of our team, contact us today.

0800 274 0702 abnamrocomfin.com/contact-us

Connect with us:

@abnamrocommfin ABN AMRO Commercial Finance www.abnamrocomfin.com/gbr

2015 Deals

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Transcript of 2015 Deals