The new arrangement provides the company with up to £28m in a combination of term debt, asset finance and working capital. It will see HSBC support Oaklands’ investment programme to increase production capacity and upgrade facilities to further improve the welfare of its hens.
Oaklands Farm Eggs is the UK’s leading colony egg producer and processes approximately 500m fresh, free-range and organic eggs a year for a comprehensive range of retail, wholesale and food service customers.
The company turned over £40m last year and the new investment will give it the capacity to process nearly one billion eggs a year through the development of new barns and packing stations.
The new EU regulations has led to a surge in demand for UK eggs as producers in the majority of EU member states have failed to meet the implementation date of 1 January 2012.
“We produce high welfare, EU compliant eggs and we are seeing unprecedented demand for our product from the UK and Europe as a result of the EU legislation and the UK’s ever growing love of eggs,” said finance director Elywn Griffiths. “We are investing significantly in the business to position ourselves for the future, not just for today. HSBC’s team appreciates the dynamics of the marketplace, the importance of building a long-term, sustainable relationship and the flexibility and scale of modern food production.”
Ian Stitt, HSBC’s Midlands deputy head of corporate, said the partnership would help consolidate its position as one of Europe’s leading egg producers. “The facilities have been structured to support the company as it expands and will give it the flexibility it requires as it develops.”