BV Dairy which has been producing dairy products for the manufacturing, food service and hospitality sectors since 1958, has secured a £1.25 million finance package from HSBC to support its ambitious expansion plans.
The company has used a £500,000 asset finance facility to equip its new 9,690 sq. ft. chill store with a state-of-the-art refrigeration system and fit 153 KW of solar PV panels to the roof of the building as it takes steps to become more environmentally friendly. In doing so, the business has created eight new jobs, with plans to recruit a further eight members of staff underway.
The bank has also agreed a £750,000 term loan to support the expansion of the processing department where raw materials are made into yogurt, soft cheese and cultured or fresh creams. Plans to increase production will begin this year and will include the introduction of a new state-of-the-art blending and pasteurisation plant and additional storage silos. As well as improving energy efficiency and reducing waste the upgraded processing department will result in the creation of a further seven or eight jobs.
Vaughan Heard, Financial Director at BV Dairy said: ‘Operating from our own chill store means we are able to consistently improve the service we offer our customers which is something HSBC has been particularly supportive of. The bank is also keen to help us realise our ambitions growth plans and is showing continued commitment to the business by helping us finance the next stage of our development. We are striving to become a greener business and one that doubles in size in the next three to five years. This ambition won’t become a reality without the support and guidance offered by the bank.’
Anthony Reed, HSBC’s Head of Corporate Banking in Hampshire and Dorset, commented, ‘HSBC has considerable farming and agriculture experience which we’ve drawn on to successfully support BV Dairy over the last two years. In that time the business has gone from strength-to-strength and this latest round of funding is testament to its success and its dedication be becoming a greener, more sustainable business.’
The latest £1.25 million finance package is in addition to the £6 million invoice finance facility that BV Dairy is able to draw on to support its expansion on an ongoing basis.