Multi-million pound finance package for fast growing growing wholesale firm

Sheffield wholesaler Pricecheck has struck up a £14m financing package to develop its offering in skincare, fine fragrance and alcohol to capitalise on expanding markets both internationally and in the UK.

Lloyds Commercial Banking  has increased its financing package to £14m to enable the business to invest in large volumes of stock for redistribution without impacting its working capital. This has helped the company to secure a number of new multi million-pound contracts with major European brand owners.

Growth in these categories is expected to help Pricecheck, which supplies 4,500 FMCG products to 80 countries worldwide, to reach its target of achieving a record £100m turnover by 2020 and £200m by 2025.

In order to facilitate the product expansion, the distributor has recently secured partnerships with world leading brands including Johnson & Johnson, Coty, and Lindt. It counts some of the UK and Europe’s biggest retailers among its customers.

Lee Walker, Finance Director, at Pricecheck, said: “Expanding into new markets and diversifying our product range provides us with every opportunity to reach our targets.

“While expanding is important to us, it can be a capital-intensive exercise that requires us to purchase large amounts of stock. Large contract wins and brand partnerships can also be unpredictable in their timing, so flexible financial support is extremely important.

“It’s crucial for us to have the backing of Lloyds Bank, which allows us to expand at pace without harming our day-to-day finances.”

Mark Butterworth, relationship director at Lloyds Bank, added: “We’ve been at the side of Pricecheck since inception over 40 years ago and seen it flourish financially in recent years, doubling staff numbers to 165 and expanding warehouse capacity by 70%.

“Excellent management of its working capital has been essential to this growth, and it has maximised its investment in a low-risk way. This has resulted in burgeoning order books and accelerated job creation. We’re proud to support businesses like Pricecheck as part of our strategy to help Britain prosper.”