Bridge of Allan dairy firm Graham’s expects to post revenues topping £82 million for its most recent trading year, its managing director has revealed.
Robert Graham said the farming and food business was likely to continue a proud record of growing turnover by around 20% per annum when it files accounts for the 12 months to the end of March later this year.
The result would mark a £14m step up on the previous year’s sales figure, but has only increased the company’s drive to diversify and offer new product lines.
Further development and investment will be complemented by £20 million in new funding support offered by RBS and its dedicated asset finance arm, Lombard.
“We are expecting to report a turnover in excess of £82 million for the year ending March 2014 and currently employ 420 people, but we don’t want to stop there,” said Mr Graham.
“Provenance remains at the heart of our business strategy and we have expanded our farm base to support around 80 Scottish dairy farmers, ensuring we have sufficient quality produce.
“UK dairy product imports are higher than £2.5 billion each year so we see definite opportunities to focus on and grow the home market.”
The 75-year-old company has recently moved into cheese, and revealed plans to create new cottage cheese and yoghurt lines late last year.
It is expected switching business banking arrangements to RBS will enable Graham’s to invest more in cream and butter markets and in developing more new products.
The package includes £7.7m in loan funding from the bank’s corporate team, an £8m finance facility from RBS Invoice Finance and £4.8m in asset finance from Lombard.
It is expected that the funding will enable Graham’s to boost its expansion plans and grow business south of the border, an area where the company has so far only sourced 15% of its sales revenues.
RBS regional managing director Eddie Rintoul said that his team had worked “very closely” with management at Graham’s to deliver the refinancing package.
“We look forward to continuing to support the growth aspirations of one of Scotland’s most well-known family businesses,” he added.