Report shows food and drinks producers back on the growth menu

The latest Lloyds Bank UK Sector Tracker has shown that food and drink producers in the UK  have returned to growth this May.

Rebounding from a slight contraction in April (57.3 vs. 49.3), this growth was driven by an increase in new orders (52.3 vs. 45.0), the fastest among all sectors recorded in March.

Looking ahead, the tracker showed food and drink manufacturers are the most optimistic about output increasing over the next year.

Dave Atkinson regional director for the Midlands at Lloyds Bank Commercial Banking, said: “For food and drink businesses that sell directly to retailers, restaurants and bars, an important practical way to maintain a healthy cashflow is to invoice and collect debts on time. But this isn’t always possible. Invoice finance can help here, as it allows suppliers to release up to 90 per cent of the value of their invoice book, typically within 24 hours so it is a perfect option for wholesalers awaiting payment for a big order.

“Meanwhile, for food and drink businesses that need to invest in new products or machinery, asset finance, or hire purchase, as it’s sometimes known, allows businesses to purchase products or machinery without disrupting cash flow.

“This allows businesses to access the tools they need to unlock growth in their business, without impacting the cash flow they need to maintain their day-to-day operations. What’s more, these assets are paid off over their lifetime, rather than by paying cash up-front, with fixed regular payments helping with budgeting.

“Helping the region’s food and drink firms to be fleet of foot, so they’re able to invest quickly and install assets that will allow them to pursue growth and serve their customer base is key – now more than ever.”