Flaming good finance for Tiger Tim
Tiger Tim Products Ltd, Europe's largest manufacturer of domestic firelighter and barbeque ignition products, has received a welcome financial boost during these tough economic times with new banking and asset-based lending (ABL) facilities totalling £8.8m from KBC Business Capital.
The funding consists of a complementary mix of revolving accounts receivable funding with plant and machinery, and a cash flow term loan. KBC will also be providing a full range of banking products that include treasury, cash management and day to day banking facilities.
Tiger Tim, based in Mold, North Wales, underwent a buy in management buy out in early 2006 and the business has seen significant growth in revenues since then - up 55% and pre-tax profits growing accordingly. With more than 85% of revenues being generated from overseas sales the business is enjoying the benefit of excellent long-term customer relationships and significant new business gains in Germany and France, and is looking to capitalise on these opportunities with its new funding facilities.
Neil Popham, executive chairman explained how the business has evolved in this time: "We took a struggling non-core unit of a private equity company and by focusing our efforts have turned it into a very successful operation. The key drivers for us are know your customer, a continuous drive to improve quality at all levels in the organisation (for example ISO 9002) and innovation. Fundamentally we are good at what we do."
Graham Barber, the Cambridge-based business development director for KBC Business Capital who led the refinancing, said: "We are impressed with the management team, their strategies for growth, product innovation and cost reduction. From the outset an understanding of the seasonal nature of their business, the long working capital cycle associated with export sales and the inherent risks of currency fluctuations was crucial. Clearly this is something we have achieved and we are delighted to be working with such an innovative and successful UK manufacturing business."
Neil added: "My team have known the KBC people for a number of years and they have always impressed us with their professionalism and ability to understand our business and its very seasonal dynamics. I have to say that in tough times like these it is very refreshing to see a bank deliver on time, without fuss and meeting expectations. This funding will help Tiger Tim continue to strengthen its business model in the coming years."
Tiger Tim was advised on the refinancing by Tim Blois, corporate finance director, and Richard Just at Grant Thornton's central and eastern corporate finance team. Tim commented on the refinancing by saying: "Using our in depth knowledge of the current funding market and our expertise in preparing businesses for refinancing, we were able to bring the right funders to the table. KBC's understanding of the business, its integrated offering and their record of deliverability made them the right partner for Tiger Tim".
