£1m bank funding for plastics company

Posted on 22 Mar 2011 by The Manufacturer

Speciality compounds manufacturer Colloids is to buy its 22,300 square metre Merseyside premises after securing a £1m commercial mortgaging facility from Barclays Corporate.

Colloids, bought by the Tosaf Group in 2004, is a multinational supplier of masterbatches and to the plastics industry, incorporating automotive and engineering sectors along with retailers and wholesalers.

Masterbatches are concentrates of coloured plastics used to colour production of batches of plastics. With a global reach, over 75% of Colloids’ production is exported to a vast range of countries including those in Europe, and the Asia-Pacific regions.

Jim Ashelby, Finance Director at Colloids, said: “Our business has delivered significant growth in revenue and profit over recent years on the back of strong organic growth and selective acquisitions. We have been very impressed with the holistic approach from Barclays, their appetite to do business in the current financial climate, and by the professional manner in which the Barclays Corporate team delivered the deal.”

Steve Berry, Relationship Director, Barclays Corporate, added: “I am delighted to have been able to provide a solution to a new client that enables them to both, have a long-term asset on their balance sheet and reduce their cash outflows. Moreover, by working closely with Barclays Capital, we have been able to protect the client against adverse interest rate movements for the next five years.”

Colloids, with an annual turnover of £24m and employing 90 people, first moved to the site on the Knowsley Industrial Park in 2001. Other growth plans this year include the purchase of new machinery both here at the company’s sister outfit Impact Colours.