(l-r) Dan Yellop (co-director, Discount Brands), Keith Breavington (Lloyds Bank) and Alex Coker (co-director, Discount Brands).
The Hitchin-based supplier of discounted fast-moving consumer goods (FMCG) brands is looking to increase the size of its business after almost doubling its annual turnover to £3.4m.
The Discount Brands Company specialises in purchasing confectionary, soft drinks, toiletries and household items, which it then sells to UK wholesalers and retail discounters. It has also started exporting to Holland, Ireland and Myanmar.
With the support of a £500,000 working capital facility from Lloyds Bank, the business has purchased more stock to meet growing demand for new products, without impacting its cashflow.
An uplift in stock and demand has helped fuel annual turnover, which now stands at £3.4m compared to £1.8m the year before.
The firm employs a team of four, and is looking to hire more staff in the near future in line with the fast-growth of the business.
It is also planning to purchase a larger warehouse moving from its current 1,600 sq ft premises in Heathrow, to expand its storage capabilities and grow turnover.
Dan Yellop, director of The Discount Brands Company Ltd., said, “Having the necessary stock levels is vital to the continuity of our business.
"We’ve seen demand escalate in the last year, as consumer demand for low-cost but high-quality goods feeds though to the wholesale market.
“To keep up, we needed to manage these orders and our cashflow, so we could prioritise increasing our stock volume and buying in new products.
"The support Lloyds Bank has provided means we’ve seen turnover almost double within a year, and we are on track for this to rise even further over the next couple of years.
"We’re looking forward to now driving the business forwards and bringing discounted goods to more wholesale clients and ultimately consumers.”
Keith Breavington, regional manager, SME global transaction banking at Lloyds Bank Commercial Banking, added: “The Discount Brands Company is a great example of a business which has the demand and the potential to achieve success but could have been held back because of cashflow.
"When you’re working with multiple suppliers and buyers, balancing your investment plans with managing payment cycles can be particularly problematic.
“There are numerous working capital solutions available however, so we’re keen to help firms like The Discount Brands Company release any tied-up cash that can instead be used to drive growth.
"As part of our wider plan to help Britain prosper, we’ve increased our net lending to SMEs by 32% since 2011.”