NWF fuels up with extended funding deal
FOOD, farm feeds and fuel distribution group NWF has extended its long-standing relationship with Royal Bank of Scotland with a £55m funding deal.
The AIM-listed Cheshire-based group, which has made two significant acquisitions this year in its fuels division, will have the firepower to do more deals after agreeing the facility with Royal Bank of Scotland Corporate & Institutional Banking.
The deal, an extension of an existing and long-term business relationship, consists of a £44m invoice discounting facility, a £10m revolving credit facility and £1m overdraft, all of which will run until October 2015.
NWF has been a strong performer in recent times. It reported a 7% rise in profits to £7.6m for the financial year 2011, on the back of a 22% rise in revenue to £464m. The Wardle-based company now employs 980 staff across its three divisions.
Chief executive Richard Whiting said: “NWF has continued to deliver on its development plans with the fuel division making significant acquisitions, despite the wider pressures in the UK economy.
“We believe there remain many opportunities to expand the group from the strong platform established over the last three years… RBS really understands our business and the team in Manchester has been integral to our success and development.”
Paul Thomas, relationship director, RBS CIB, said: “It has been great to work with NWF’s management and help the firm develop quickly and effectively into a leading competitor in all three of its divisions.
“The new finance facility will allow the firm to seek out new acquisitions as well as effective organic growth, and we were happy to put the right facilities in place to allow them to do this. RBS looks forward to working with the firm in the future.”
Royal Bank of Scotland’s Manchester-based team has worked with NWF – a former farmers’ co-operative – for 80 years.
