Nene Packaging agree new working capital funding with RBS

Northampton, March 24th 2009 – Northampton based Nene Packaging Limited have agreed a new funding facility with The Royal Bank of Scotland ("RBS") to provide ongoing working capital facilities for the company which utilises the Government's newly launched Enterprise Finance Guarantee Scheme ("EFG").

Nene who operate from Gladstone Road in Northampton was established in 1994 and is one of the largest manufacturers of screen printed displays and conventional packaging in the Midlands. Operating in both design and manufacturing fields the company has two in-house design studios, one which operates in corrugated structural design and the second in creative design for point of sale material.

The company has a well spread client base across the UK, ranging from leading blue chip customers such as Tesco to smaller regional based businesses. The intention is to continue to strategically grow the business in a measured fashion given the economic constraints facing some of the companies, target markets.

Earlier this year the company did suffer from the collapse of Woolworths and EUK which were their customers, but the new funding arrangement with RBS provides security to protect their working capital lines and allow them to attract new clients. RBS through Lombard, the asset finance provider and RBS Invoice Finance have provided a working capital facility which replaces the facility which was withdrawn by their previous bankers who were unwilling to extend further support. RBS has also negotiated additional funding for the company through EFG, the Government-backed scheme which aims to ensure that smaller businesses have the necessary working capital or investment finance in place to help them through the difficult economic climate. Under the EFG scheme the government will guarantee 75% of any loans made, with the bank covering the remaining 25%.

Commenting on how the new funding will support the company Rob Lugmayer Managing Director at Nene Packaging Limited said:

"In these trying economic times it is more important than ever to have stability in your financial operations to allow you to adapt to fluid movements in your operating markets. As a large supplier to the retail market we are seeing some of our customers enjoy better times than others, but through our measured approach to business, we are still seeing and exploiting opportunities for the benefit of the business. Whilst Woolworths was a blow, the new funding secured provides us with the stability we require to continue with operations and fulfil existing customer needs, whilst also providing the required capital to meet new orders as and when we win them. We very much appreciate the swift turnaround of RBS in providing this funding proposition for us."

Andy Ellis, Director, Business Development at RBS in Northampton who structured the funding deal with colleagues at Lombard and RBS Invoice Finance adds:

"Nene Packaging is a classic example of a business that has a robust business model and continues to operate and seek opportunities for growth in the current difficult economic environment. The perception that banks are not lending to local businesses is not accurate. We are keen to support good, well managed businesses like Nene and this transaction shows that businesses can and do secure funding in the current climate. We encourage our customers to speak with us to fully explore what options are available to fund their own unique requirements - be that working capital support, expansion or investment, through the wide range of finance instruments and initiatives that are now available to the SME market."

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