Press releases – February 2009

Axminster, February 2009: A former investment banker in the city is celebrating the launch of his new company selling men's grooming products with a new listing with Waitrose amongst other customers, thanks to a start up funding package from NatWest.

After a life style change with a move to the West Country a number of years ago, Douglas Lanfear noticed that there was potential growth in the male grooming sector. Believing that there was an opportunity to be taken advantage of, Douglas decided to produce his own brand of cosmetics and use existing high street names to sell the products. The brand is premium mass market and placed to try and offer an alternative to the two established and leading brands. Douglas believed that in order to compete with the mass market, the products had to offer something different with a value added edge, and this was the inclusion of Dead Sea Minerals.

The range has been created by a chemist working for the company in conjunction with its manufacturing partner in Israel and has taken two years to develop. It is now stocked by Waitrose, Ocado and John Bell & Croydon.

The business now indirectly employs more than 15 people around the UK and distributes the product from a warehouse in Nottingham. Two years ago Douglas was looking for a new banking partner to provide the required support for his new business and approached Matthew Hodge from NatWest in Yeovil. NatWest has provided a bespoke finance package to facilitate the start up, including a letter of credit facility worth £100K to guarantee payments to its supplier in Isreal, which was provided by the bank's specialist Global Transaction Services division. NatWest has also provided an invoice discounting facility through RBS Invoice Finance, part of the RBS group along with NatWest, which will allow the funding to grow in line with the anticipated growth of the business. An overdraft facility has also been provided by the bank. The company has also taken advantage of NatWest's Foreign Exchange services offered to help with hedging given their cost base is in Euros.

Douglas Lanfear, Managing Director, Dead Sea Healthcare commented:

"I still view grooming products for men as a real growth market, as more and more men become more image conscious and realise the benefits of taking care of their skin. I really believe in the product, which we are able to sell at competitive prices in the absence of expenditure on excess packaging. The hand repair cream has been particularly successful, and I hope to bring out a Dead Sea Healthcare range for women at some point in the future. I am talking to a number of other major retailers and hope to extend the range of stockists in the near future.
I am also delighted with the backing I received from NatWest. I am confident that I have launched the business with a banking partner which really understands my needs, delivering a tailored funding package that was vital in getting me started."

Matthew Hodge, Relationship Manager, NatWest, Yeovil commented:

"Douglas has an impressive, well-thought through business plan and I am confident that Dead Sea Healthcare is going to be a success. The early contract wins suggest that retailers have faith in the product as one that will be attractive to their consumers."

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