UK Export Finance has worked with Virgin Money to secure a £750k
financing package for Scottish premium shortbread manufacturer
Dean's of Huntly.
The family-owned business already exports to markets like
Germany, USA, Australia, and China, selling both branded
shortbread and own-brand products made for large overseas
retailers.
Seasonal demand for its hand-baked shortbread means that the firm
requires additional working capital to ramp up production in the
run-up to Christmas, Mother's Day, Chinese New Year and other
seasonal events.
UK Export Finance helped to secure Virgin Money financing with a
guarantee offered through its General Export Facility (GEF)
product – this has helped UK exporters to access over £325
million in new working capital loans since its launch by UKEF in
2020. The agency can fast-track applications for financing
facilities worth up to £10 million.
With the GEF funding first agreed in 2023, Dean's has already
been able to use the financing to make Christmas shipments,
produce special-edition Year of the Dragon tins, and launch a new
range of shortbread hearts to meet demand around Valentine's Day
and Mothering Sunday.
The new financing also supports the firm's efforts to invest in
new equipment and create up to 20 new posts.
Bill Dean, CEO at Dean's of Huntly, said:
The GEF facility has helped us manage the working capital
implications of large export orders. With the time it takes to
ship the products, it can take 3-4 months to get payment from
when the shortbread was made and shipped. The functionality of
GEF is in being able to drawdown what we need when we need it,
and then pay it all back when we don't need it. It has enabled us
to pursue more customers in the US as well as expand in the Far
East and Europe.
The flexibility of what you can use the GEF for means we can use
it to fund overseas sales, but also take on new people and invest
in new equipment to improve processes and reduce environmental
impact as well.
Tim Reid, CEO at UK Export Finance, said:
Dean's has a distinctly Scottish product which is much loved
around the world, and our support is helping them to enjoy
continued export success. The overwhelming majority of UKEF's
deals support smaller businesses like Dean's, ensuring that
entrepreneurs from all over the country can benefit from
international trade.
Craig Wilson, Head of FX Sales & Trade Finance at
Virgin Money, said:
Dean's of Huntly have been a Virgin Money customer for many
years, and they are an inspiring business to work with given
their success and export growth. We are proud of our strong
relationship, but we don't take it for granted and developed an
innovative and tailored international solution to help Dean's
continue their successful trajectory. Virgin Money have a team of
international experts available to support businesses in
different sectors with the right products to help them navigate
their international plans.
UK Export Finance has previously supported Scottish food and
drink firms as varied as organic distillery Nc'nean and seafood
exporter Denholm Seafoods.
