One of Scotland’s leading single malt whisky producers, Inver House Distillers, has positioned itself for growth by securing a £45million asset-based lending (ABL) facility with Bank of Scotland.
The ABL facility, which has been secured against the company’s inventory of whisky stocks, will provide Inver House with flexible access to working capital. This will help the business with its ongoing investment and development of new whisky stocks as it continues to build its brand portfolio of distinctive scotch whiskies such as Old Pulteney, Balblair, anCnoc and Speyburn single malts.
Inver House Distillers has invested heavily in storage facilities, with stock warehoused in central Scotland and at its five Scotch whisky distilleries in the Highlands and Speyside. The ABL facility will help the business improve its margins over the next five years and provide increased headroom to support its overseas expansion in India, Kazakhstan and Poland. It will also enable the company to respond quickly to growth opportunities in new markets.
Roger Hall, financial director at Inver House Distillers, commented: “We are an ambitious business looking to increase our share of a growing global market. The ABL facility provides greater flexibility with supply of new whisky casks and complete business transactions more efficiently.
“The new facility is significantly better value for us. It gives us access to the most cost effective borrowing, which is crucial to our business. It also helps us to continue investment in our whisky stocks, which will see our brands grow over the next 12 years and beyond.”
Simon Woodcock, director of business development for Bank of Scotland, added: “Inver House Distillers is a long established customer. We have worked closely with the business, drawing on our specialist sector knowledge, to create a tailored ABL package that ensures it remains competitive.
“Whisky is a key contributor to Scotland’s food and drink exports and the UK’s balance of trade. Bank of Scotland is committed to working with this sector to help Scotland prosper and is invested in supporting businesses, like Inver House, expand their international presence.”
Inver House Distillers, was established in 1964, currently employs 210 people across its six sites in Scotland, the majority located in the central belt in Airdrie, however also North at the distilleries of Pulteney, Balblair, Knockdhu, Speyburn and Balmenach.