Funding secures overseas growth

Growth plan: From left, Peter Egan, Lloyds; Mary Broadhead, YFM Equity Partners; Mark Henley and John Waddington, President Engineering; Adam Barraclough, Lloyds; Marie Cooper, President Engineering; Andrew Gaunt, Lloyds.
Growth plan: From left, Peter Egan, Lloyds; Mary Broadhead, YFM Equity Partners; Mark Henley and John Waddington, President Engineering; Adam Barraclough, Lloyds; Marie Cooper, President Engineering; Andrew Gaunt, Lloyds.
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President Engineering Group is heading for further growth in foreign markets with the help of an innovative funding package from Lloyds Banking Group.

The £18 million turnover Sheffield-based valve manufacturer has distribution and manufacturing facilities in the US and India and sells to more than 40 countries worldwide.

Now it is targeting new export markets and opportunities for overseas expansion.

Managing director Mark Henley sees opportunities in China and Asia, where rising energy demand, combined with the need to improve mine safety is boosting demand for dust and fire suppression and water control equipment made by President Engineering’s Conflow subsidiary.

Meanwhile, increased demand for natural gas in Asia, the Middle East, Latin America, Africa and emerging economies means further business opportunities for the group’s Bestobell cryogenic valves business.

Lloyds is providing several funding streams to support President Engineering’s growth.

An export-focused confidential invoice discounting line, provided by Lloyds TSB Commercial Finance, will safeguard the company’s cashflow against international customers’ lengthier payment terms.

Meanwhile a direct supplier import loan facility, provided by Lloyds Bank Wholesale Banking & Markets, will allows President Engineering to advance the cost of materials to suppliers and repay the loan when finished goods are shipped to customers.

The Bank is also refinancing the group’s capital structure and providing ancillary banking facilities.

Adam Barraclough, from Lloyds Bank, said: “President Engineering is a highly ambitious, market-leading firm, with significant experience and capabilities in opening up new international markets, as well as diversifying its product suites to move with industrial advancement.

“This deal will further add to its ambition and capabilities, and we look forward to supporting the company in realising its growth plans.”