Business Loans Case Study
Abbeydale Brewery is a Sheffield-based brewery supplying its range of beers to real-ale drinkers in more than 400 pubs across Sheffield and beyond.
Established in 1996 as by Patrick Morton and father Hugh, Abbeydale Brewery now produces more than 120 barrels per week.
The company, based on Aizlewood Road, Abbeydale, had a clear growth plan and an investment by Finance Yorkshire’s predecessor South Yorkshire Investment Fund in 2006 funded an entirely new brew plant to increase production capability.
Success following this expansion meant Abbeydale Brewery was in a position to expand further, increase production, and to grow the business beyond their micro brewery status but needed investment to do so.
Finance Yorkshire provided a business loan of £100,000 for new equipment and NatWest arranged a mortgage so the company could purchase a neighbouring industrial unit and expand their premises further.
Susan Morton, Director of Abbeydale Brewery alongside husband Patrick, explained: “The extra space and new equipment will allow us to increase our capacity and make us more efficient and as a direct result of the investment we have been able to take on a new employee. We now have thirteen members of staff and we are pleased to bring job opportunities to the community.
“Times are difficult in the pub trade and the investment offered by Finance Yorkshire can really benefit small breweries, or any other small businesses which need funding. We are seeing our business grow and it is thanks to the investment.”
The Investment Rationale
Finance Yorkshire Portfolio Manager David Ward said: “Abbeydale Brewery is a profitable business and Patrick and Susan Morton have a clear growth plan for the company.
“In order to expand to the next level and develop beyond a micro brewery, the company needed more space and more investment. For that reason, it made sense to work with NatWest, who could provide a mortgage, while Finance Yorkshire could provide the cash boost to buy the equipment and employ a new member of staff.
“It is fantastic to see a small business grow and become a valuable provider of jobs in the community. We were delighted to be able to invest in Abbeydale Brewery to assist its expansion and we hope Patrick, Susan and the team continue to experience success.”
Abbeydale Brewery is awaiting the arrival of the final pieces of equipment that will be installed in the newly acquired property and will then begin to increase production of their beers.
As this is the second expansion in recent years, the company has high hopes for future success and the extra business that the new property and equipment will bring.
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire