Lloyds Bank Commercial Banking has helped Sheffield wholesaler Pricecheck develop its skincare, fine fragrance and alcohol offering to capitalise on expanding markets, both internationally and in the UK. Growth in these categories is expected to help Pricecheck, which supplies 4,500 FMCG products to 80 countries worldwide, reach its target of achieving £100m turnover by 2020 and £200m by 2025.
To facilitate the product expansion, the distributor has secured partnerships with world leading brands including Johnson & Johnson, Coty, and Lindt. It counts some of the UK and Europe’s biggest retailers among its customers.
Pricecheck has achieved fast revenue growth in recent years, with working capital support provided by Lloyds Bank. In 2019, Lloyds increased its financing package to £14m to enable the business to invest in large volumes of stock for redistribution without impacting its working capital. This has helped the company secure a number of multi-million-pound contracts with major European brand owners.
Lee Walker, Finance Director at Pricecheck, said: “Expanding into new markets and diversifying our product range provides us with every opportunity to reach our targets.
“While expanding is important to us, it can be a capital-intensive exercise requiring us to purchase large amounts of stock. Large contract wins and brand partnerships can also be unpredictable in their timing, so flexible financial support is extremely important.
“It’s crucial for us to have the backing of Lloyds Bank, which allows us to expand at pace without harming our day-to-day finances.”
Mark Butterworth, Relationship Director at Lloyds Bank, said: “We’ve been at Pricecheck’s side since their inception over 40 years ago and seen them flourish in recent years, doubling staff numbers to 165 and expanding warehouse capacity by 70%.
“Excellent management of working capital has been essential to this growth, and Pricecheck has maximised its investment in a low-risk way. This has resulted in burgeoning order books and accelerated job creation. We’re proud to support businesses like Pricecheck as part of our strategy to help Britain prosper.”