Allam Marine powers forward with refinancing deal

ALLAM Marine, the Hull-based diesel power generator manufacturer, has completed a £45m refinancing deal to help sustain its growth.

The company, established in 1981, has moved its banking operations to Lloyds Bank Commercial Banking’s North, East and West Yorkshire team.

The agreement sees an additional £15m of support provided to the exporter than was previously available under its former relationship.

Powering up for growth: Assem Allam (centre) of Allam Marine, and his son Ehab Allam (second from right) meeting with staff from Lloyds TSB (l-r) Steve Harris, Richard Townsend, Steve Palmer, Simon Banham

As part of the deal, which includes a revolving credit facility, Lloyds Bank’s Yorkshire-based trade team has structured a specialist trade finance funding package for the business, as well as making use of the government backed Funding for Lending Scheme.

Allam Marine posted sales of more than £185m in its latest set of audited accounts, exporting more than 80% of its products to non-EU countries including several of the so-called ‘Next 11’ emerging markets such as Vietnam, Bangladesh, Nigeria, Pakistan, and Egypt, as well as Russia, Iraq and Sri Lanka.

The business was established in 1981 with sales of just under £3m. It has grown today to boast profits of more than £22m.

The family-owned company’s diesel generators are used as back up to mains supplies in large public and private buildings and manufacturing facilities in UK and Western Europe though its products are commonly used as a mains supply in nations with unreliable or non-existent power networks.

Allam Marine’s founder and managing director is Dr Assem Allam.

He said: “This new funding arrangement provides us with the greater degree of flexibility and support that we need to help sustain our growth.

“We operate in numerous emerging and newly established international markets and Lloyds Bank’s willingness to support us in these territories was a key part of our decision to move our facilities.”

Richard Townsend, relationship director for Lloyds Bank Commercial Banking in East Yorkshire, said: “Allam Marine is a manufacturer with a global pedigree which Dr Assem Allam and his management team have built up from scratch to become one of East Yorkshire’s leading businesses. We are delighted to be supporting the business and extremely proud to have become their chosen banking partner.”

Rollits advised Lloyds Bank Commercial Banking on the deal.