Business Loans Case Study
Bankwood Meats is a meat manufacturer and purchases, cooks, slices and packs turkey crowns.
The company was established by Managing Director’s John Hearsey and Andrew Bennett and has been trading on Thorne Enterprise Park since November 2004.
It now employees 15 staff members and supplies major wholesale and food service clients.
Bankwood Meats faced a major problem in July 2011 when the boiler used for cooking turkey broke down and was not economical to repair.
Managing Director John Hearsey said: “We lost around £6,500 worth of meat that we just had to throw away.
“We brought in a smaller rented boiler as a quick-fix solution to keep production going, but continuing with this put the future of the business in jeopardy.”
Bankwood Meats needed to purchase a new Fulton Boiler and so turned to Finance Yorkshire for help with the costs.
The company, which has 15 employees, was recommended to Finance Yorkshire’s predecessor, South Yorkshire Investment Fund (SYIF), by their accountants Smith Craven. The company initially received investments to help establish the firm and then to help the business against the bird flu epidemic.
John said: “We have a good relationship and have continued to turn to Finance Yorkshire because of their amiable approach and knowledge.”
John also said working with Portfolio Manager, David Ward, over the years has meant they have been able to develop a good working relationship.
“David comes down to the factory and we go over business goals, aspirations and our finances.”
The Investment Rationale
Finance Yorkshire’s latest £20,000 business loan meant Bankwood Meats was able to update its old boiler model and change from electric to gas, which is more economical to run.
David Ward added: “It has been great working with Bankwood Meats, as we have been able to watch the business grow and help protect its future.
“We were delighted to invest in the new boiler to help make the company more efficient and eco-friendly and we hope John and the team continue to experience success.”
The new boiler has increased the firm’s output and improved its environmental impact.
John said the company now saves more than £3,000 per annum compared to the old model and it takes around an hour less to cook 1.5 tonnes of meat, which is around 350 turkey breasts.
A new sales executive has now been recruited to help the company reach larger wholesalers and supermarkets.
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire