Business Weekly - Cambridge, UK

Bairds Malt was formed in March 1999 as the result of a merger between two well established and already successful malting companies Hugh Baird and Sons, owned by ConAgra Malt, and Moray Firth Maltings, owned by Scottish Courage.

The company’s heritage in malting dates back to 1823 when Hugh Baird & Sons Ltd was founded. Bairds Malt operates five malting sites across the UK located at Inverness, Arbroath and Pencaitland in Scotland and Grantham and Witham in England.  Arbroath is also the location of the Operations office.

Bairds Malt has a total annual production capacity of approx. 200,000 tonnes and in recent years has concentrated on the UK domestic market, successfully developing long-term supply relationships with major brewers and distillers.

Bairds Malt has two merchanting companies (trading as Saxon Agriculture and Scotgrain Agriculture) which support the malting division in the direct procurement of malting barley from farms located close to the malting facilities. In addition, these companies have developed strong capability in the procurement and supply of a full range of other products,  including organic grain, seed and agricultural inputs.

RBS Invoice Finance – the invoice finance division in the bank structured a full ABL facility of £20million invoice discounting and £15million inventory to support the company’s growth and working capital requirements. The full banking facilities for Bairds Malt have also been won by the RBS Corporate Banking team based in the East of England providing a complete funding structure for the business to deal with one bank for its requirements.

The RBS Invoice Finance team led by Simon Turner, Director Business Development and Alan Couzins, Director ABL and Agency recognised the benefits of the ABL funding package as an alternative finance solution to meet the company’s growth aspirations. ABL is focused on realising funding against specified company assets and provides increased control, flexibility and an evergreen facility without capital repayments which maximises working capital.

David Gilpin, CFO Bairds Malt said:
“The malt and grain markets have changed substantially in recent years and Bairds has implemented a long-term strategy to respond positively to these changes.  An essential part of this strategy has been a review and expansion of our funding arrangements.  We have been impressed with the support and understanding provided by the RBS team and look forward to working with them in the future.”

Alan Couzins, Director RBS Invoice Finance said:
“The funding structure that has been put in place provides Bairds Malt with the platform to continue the growth and success they have achieved to date.  One of the critical success factors in the deal from our side has been our commitment to understand the business which enabled us to structure a debt package which fully met management’s needs and expectations, allowing them to then drive their business forward. We look forward to working with them.”

-Ends-

For further information please contact
Caroline Marsden
Senior Media Manager
Tel: 07769 910899


Notes to Editor:

• The Royal Bank of Scotland Group ("RBS Group") is one of the world's leading financial services companies providing a range of retail and corporate banking, financial markets, consumer finance, insurance, and wealth management services. RBS Group operates in Europe, the US and Asia Pacific serving more than 36 million personal customers world-wide and employing more than 140,000 people.  In addition to the provision of a full range of banking services under The Royal Bank of Scotland and NatWest brands, RBS Group also includes Citizens Financial Group, Ulster Bank, Coutts Group, Direct Line and Churchill