How was the deal introduced?
Initially, the business was referred to one of Mercia’s legacy funds via the then non-executive board member, Paul Dickinson, who had a long-standing relationship with the fund team. From that initial conversation, four separate loans were made to the business over a number of years, demonstrating the enduring strength of the relationship with the company.
What did the company plan to use the initial funds for?
To enable a second bore hole to be established to secure future supply.
What progress has the company made since the first investment?
The company has gone on to treble turnover and become highly profitable. It has won awards for the quality of its product and has become the premium British spring water.
The business had been hampered only by production capacity, and a subsequent loan through EV SME Loans assisted in the installation of state-of-the-art production lines, that should easily see the business achieve £50m turnover.
The Mercia Effect
What have we been able to do for this company as a result of our involvement?
The main directors consider Mercia to be part of their ‘corporate family’ and more than just a funder. The funds and the Investment Manager supported the company through a very difficult time when their existing lender was unwilling to provide further funding to the business. Mercia’s Investment Manager provided a facility which ensured the business could achieve its growth ambitions. As a result, the company continues to use Mercia for finance alongside traditional finance from mainstream banks.
“Mercia is a valued partner to Harrogate Spring Water and has demonstrated this through a good understanding of our business and our related funding requirements. Our Investment Manager made the funding application and ongoing monitoring requirements as pain free as possible allowing us to focus on growing our business. We look forward to developing the relationship further”Damien Wilkinson, Harrogate Spring Water