BREAL Zeta CF Ltd has supported cutting-edge aerospace engineering business, Beagle Technology Group, with a £2m asset-based lending (ABL) package, comprising invoice discounting, plant and machinery finance and a stock finance facility.
The transaction, which was completed in just under two weeks from offer to completion, has created substantial headroom to help the business drive its plans for organic growth.
While the ABL facility was originally intended as a short-term working capital injection, Beagle has recently agreed a facility extension for a further 12 months to sustain its growth plans.
Founded in 1956, Beagle Technology Group designs and manufactures metallic and composite parts and structures, as well as highly finished components for the Aerospace, Defence and Marine Markets. The company's expertise lies in the creation of value added niche engineering from concept to supply.
The business operates from its 80,000 Sq. Ft. principal manufacturing facility, located in Christchurch, Dorset. All of their metallic, composite and design capabilities are provided in-house ensuring a turnkey engineering capability to their customers, which include BAE, Rolls Royce, Sunseeker Yachts and the MOD.
John Taylor, Managing Director of Beagle Technology Group, comments: “BREAL Zeta stepped outside the realms of what we would normally expect from an ABL provider to fund a level of stock, in addition to confidential invoice discounting and plant and machinery, to generate the headroom we need to fulfil our plans. They are a supportive partner, bringing a high degree of understanding and realism to the process and acting with speed and flexibility to structure the working capital we need to drive further growth. As a result of the facility from BREAL Zeta, we will be able to take the business from £7m to £9m in the next three years.”
Rob Gilmore, Sales Director at BREAL Zeta CF Ltd, said: “Beagle Technology Group is a highly technical organisation that has sought a technical asset-based lending partner in BREAL Zeta to fund its growth. We met with the management team to gain a big picture view of the company and its opportunities as well as a deeper understanding of the business and acted quickly to structure the optimal financial headroom to sustain and propel business growth. This deal is pivotal to Beagle Technology Group’s expansion plans and we are immensely proud to be backing the best in British engineering. We look forward to developing a strong and successful relationship that will enable our client to achieve their ambitions.”
Liquidity Club are delighted to have been involved, working closely with both parties to establish the future plans and structure a funding solution to fit. Congratulations to all involved.
Net lending to businesses reached its highest level in a year last month, at £3.24bn - an increase of 0.2% year-on-year. This is despite borrowing in the Construction sector - negatively impacted by poor weather over the winter period - contracting by nearly 7%.
Borrowing by manufacturing businesses increased by nearly 9%, evidencing increased confidence in the sector as the weak pound has made UK exports more competitive in international markets.
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In a recent study by Grant Thornton, the fastest growing companies were analysed and a set of 4 common characteristics emerged. The study involved a group of 119 companies identified with over 20% revenue growth last year.
While there are many routes to success, the above were identified as common amongst many or all of the businesses identified.
Read the Grant Thornton Growth Report 2018 here.
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