Furnishings firm agrees £7m funding package as revenues soar 60%
Multi-channel garden furniture retailer Moda Furnishings has agreed a new £7m funding package with Secure Trust Bank Commercial Finance amid a surge in revenues.
The Manchester-based company, acquired in September 2019 in an MBO led by chief executive Jonny Brierley and chief operating officer Vallan McCarthy, backed by the Manchester office of mid-market private equity investor Endless, has had an outstanding year of growth with revenues set to hit £24.5m in the year to the end of October, from £15.3m in 2019, an increase of around 60%.
The innovative funding solution from Secure Trust Bank is structured to provide inventory and cashflow funding, supporting the continued expansion of the business which has seen strong growth, despite its two showrooms being closed for significant periods as a result of the COVID-19 lockdown.
Soaring online demand from consumers for high-quality outdoor furniture has been enabled by Moda’s own in-house logistics and white-glove delivery service.
The refinance was led by chief financial officer Gareth Lloyd, who joined Moda in January.
Gareth said: “We’re delighted to complete the new funding facility with Secure Trust Bank. Demand for Moda product this year has been tremendous, sometimes resulting in longer lead times than we would have liked for our customers.
“With the funding solution now in place we can ensure our stock profile keeps pace with continued growth, allowing us to deliver to customers in only seven-10 days and underpinning the outstanding Trustpilot ratings thousands of our customers have already given for the quality of product and service we take pride in delivering.”
Will Airey, regional sales director at Secure Trust Bank’s Manchester Commercial Finance team, said: “We’re delighted to be working with Moda and supporting this fantastic business.
“The prospects for growth in the years to come are really exciting and we look forward to helping Gareth and his colleagues achieve this.”
Moda was advised by law firm DLA’s finance and markets team led by Matt Christmas with Charlotte Walden, and by Deloitte’s debt and capital advisory team led by Anil Gupta with Adam Sookia.
Secure Trust Bank was advised by Lauren Priest-Stephens of Addleshaw Goddard.