Hull-based Three Crowns Confectionery has undergone a management buy-in after securing a £300k funding package from East Yorkshire-based One Stop Business Finance.
The £300k loan has enabled a management buy-in at the chocolate manufacturer by managing director Mike Flower.
The business, which manufactures confectionery for companies including Thorntons, will use the loan to pay off the existing overdraft and to provide gap funding for business expansion.
Flower said the funding package would “enable my business to grow to the next level”.
Andrew Mackenzie, One Stop Business Finance’s MD said: “This is yet another transaction that fits the One Stop Business Finance mould; a high quality management team requiring a flexible lending solution and able to secure it with great quality asset.”
Accounts for Three Crowns Confectionery for the year to 31 March 2015 reveal the business made a loss of 801k and it had a year-end balance sheet deficit of £1.4m.
The accounts, which don’t reveal turnover due to the size of the company, state: “Since the balance sheet date, the company has won new sales and has re-examined its existing business in order to try to make efficiency savings and better margins, both of which the management believe will contribute to improving the company’s future financial performance.”
As of 31 March 2015, Three Crowns was majority owned by Hilder Food Imports, which bought an 80% equity stake on 4 July 2014. As part of the deal loans worth £319k owed by Three Crowns to Hilder were converted into equity.
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