LNT Group completes £100m deal as Tomlinson bashes banks
ENTREPRENEUR Lawrence Tomlinson has hit out at the banking sector’s lending policies despite his business empire completing a major £100m refinancing.
The Ginetta cars chief also today revealed further details about his role as an “entrepreneur in residence”, following his government appointment by business secretary Vince Cable last week.
LNT Group has interests in a diverse range of industries, including motor car production, care homes, software and construction.
Commenting on the refinancing, Mr Tomlinson praised two of the four banks involved – Santander and Yorkshire Bank – but refused to namecheck two others because he said he had been frustrated with their approach and the time taken to reach a satisfactory conclusion.
“This will allow us to grow the business but it will probably be at a slower pace than I would have liked to,” he said. “The whole process has taken between two and three years.
“The amount of paperwork has been phenomenal and it has been very complicated. What we want to do is get on with the running of our business rather than having to spend time raising debt to grow.”
Mr Tomlinson believes decisions on finance have been taken out of the hands of local bankers and passed to executives in London who he claimed weren’t looking at bids on a case by case basis.
“We’ve got some fantastic people in Yorkshire working within all the banks but their hands are tied because of totally inflexible lending policies,” he said.
“There definitely needs to be better access to finance to create growth. If you look at lending figures against demand they are appalling.
“The banks have been found out about LIBOR. They’ve mis-sold products. They’ve been fined for helping money launderers. We’ve asked them to lend to small businesses and they’ve told us they have been doing when the evidence is that they clearly aren’t.”
Mr Tomlinson praised the Government’s efforts to support economic growth, highlighting the Funding For Lending scheme and Quantitative Lending as positive initiatives.
The former Batley Grammar School pupil, who has built up an estimated £500m fortune after growing his business empire, told TheBusinessDesk.com that he was excited about his one day a week role at the Department for Business, Innovation and Skills.
On the role, he said: “I’ve been banging on that we need to help small businesses. This role has given me the platform to reflect the voice of small businesses and suppliers across the country that I come across.
“It gives me a direct line into government to let them know what the position is of SMEs. I’ve got a lot of experience of SMEs so I tick all the boxes there.”
Commenting on LNT Group’s present performance and future plans, Mr Tomlinson said he was aiming to double racing car production at Ginetta to 300 cars and continue creating jobs at Ideal Care Homes, which boasts 2,000 staff.
LNT Group was forced to shed a number of staff at its construction arm because of the downturn last year but Mr Tomlinson is confident its future is brighter.
He also sees opportunities in the group’s LNT Solutions arm, a chemicals business which has developed a de-icer for aeroplanes.
“We’ve created 2,000 jobs since 2009,” he added. “I’d have liked to have created another 2,000 jobs between 2013 and 2016 but really the banking restructuring will constrain growth with us creating 500 jobs in that period rather than 2,000.”
TheBusinessDesk.com was also given an exclusive look at the group’s Ginetta Lifestyle clothing range which is set to be launched shortly.
Each garment is to be produced in a limited number with the range including jackets, jumpers and trousers. The clothing range has been developed in collaboration with a team of designers from Huddersfield University.
Accountancy firm Deloitte and law firm Freeth Cartwright advised LNT Group on the refinancing.
