Press releases – September 2009

Kingswinford, September 7th 2009 - Ultra Furniture Ltd the Kingswinford based furniture manufacturer has agreed a new funding line with NatWest which sees a rebanking package provided to support the ongoing requirements and growth aspirations of the company.

Ultra Furniture has been making upholstery in Kingswinford for the last 20 years. Currently employing 210 staff the business provides a wide range of sofas for retail furnishers throughout the UK. DFS is one of their largest customers in the UK and the company also exports their products to Ireland.

Earlier this year because of the onset of the "credit crunch" and the effect on consumer spending, the company suffered a downturn in trade and requested short-term support from their existing bankers. With support not forthcoming Ultra sought to employ the services of Julia Lowe from Higgs & Sons Solicitors to help them seek the funding support they required.

The Ultra management team are confident that despite the current economic environment their business model has the ability to generate further growth for the business over the next few years. To support this they have negotiated support from their new bankers NatWest in the form of a commitment to an injection of working capital via the Government's Enterprise Finance Guarantee Scheme ("EFG") as well as a working capital facility provided by the banks Invoice Finance department. The new funding provides the company with adequate capital to support the operational demands of the business on an ongoing basis whilst also providing a financial platform to allow the company to explore further growth opportunities.

Introduced to Ultra by Karen Turner of Price Pearson Accountants and advised by Julia Lowe from Higgs & Sons Solicitors, the Wolverhampton based Business & Commercial Banking team at NatWest have worked closely with Finance Director Glenn Aston and his management team to understand the business, its strategy and therefore the financial support it requires to support these aspirations.

Commenting on the prospects for the company, Glenn Aston said:

"Despite current market conditions and the impact felt in retail markets, our order book has held up well and indeed we have generated new revenue lines, which provides a real endorsement of our product range and the quality of that range. We have therefore taken the decision to invest in our capital infrastructure, to increase the working capital we need for the current production cycle, but also to raise funds to support our growth aspirations in the medium term, whilst also protecting our imports against rate fluctuations. Our belief is that it is right to look at these issues now to make sure we are well equipped to meet any strains on the business from the current market, but importantly build for the future."

Mike Elphick, Manager, Business & Commercial Banking at NatWest in Wolverhampton who provides relationship management support to the company adds:

"The business has operated successfully for 20 years, and as we have developed the relationship between Ultra and NatWest this year we have introduced business partners from our wider Group to provide financial solutions to meet the short and medium term requirements of the company. Utilising a number of partners and solutions, EFG, Invoice Finance and Interest Rate Hedging we believe we have put in place funding that is flexible to the needs of the business in this and future market conditions."

Karen Turner, Director, Price Pearson Chartered Accountants in Dudley commented that:

"We were happy to introduce NatWest to Ultra to assist the company with its funding requirements. It is always gratifying to see a successful outcome and aid a valued client in meeting their financial needs for continued growth and we have been impressed with the positive approach NatWest has taken in supporting Ultra Furniture."