Hunter Stoves settles into new HQ
An Exeter-based stove manufacturer and supplier has acquired new premises with the support of a tailored six-figure loan from Lloyds Bank Commercial Banking.
Formed in 1996, after acquiring the design rights and existing stock of the Hunter Stoves brand, Hunter Stoves offers trade customers 200 different designs of wood burning and multi-fuel stoves. The 14,000 stoves the company produces each year are exported across Europe, South Africa, New Zealand and Japan.
Over the past two decades, the company has launched six new brands as well as acquiring the Parkray brand. At the end of its last financial year, the company recorded a turnover of £7million.
To support its continued growth trajectory, Hunter Stoves approached Lloyds Bank Commercial Banking, which provided a £430,000 loan that allowed the company to acquire a head office complex, including a warehouse, on Emperor Way in Exeter Business Park. The new warehouse facility has enabled the business to reduce delivery time from two weeks to just three days, allowing it to operate in line with heightening customer demand.
Since settling into the site, the company, which employs 170 people worldwide, has recruited a marketing manager. It also plans to create further employment opportunities in its marketing and export sales teams to deal with an increase in enquiries from the Northern Europe and New Zealand.
In addition to the loan, Lloyds Bank Commercial Finance provided a £1.9 million discounting facility, to allow Hunter Stoves to draw money against sales invoices before transactions are processed.
Paul Grimes, Managing Director of Hunter Stoves Limited, said: “After years of steady progression, now felt like the right time to really push the business forward and pursue a more ambitious growth strategy, underpinned by the development of a state-of-the-art product range. We knew that the purchase of new properties would be instrumental in supporting this change.
“Our previous banking provider could only offer us a short term mortgage, making it difficult for us move and settle into new premises. Steve, our relationship manager at Lloyds Bank Commercial Banking, took the time to understand our business, and the costs incurred in moving sites. He offered us a mortgage with a sustainable repayment programme, and provided invaluable guidance throughout the lending process.”
Steve Hearn, relationship director at Lloyds Bank Commercial Banking, said: “Hunter Stoves is one of the biggest manufacturers of steel-based stoves in the UK and we’re pleased to have worked closely with the business over the past three years to help fulfil its ambitions. This funding package will enable it to strengthen its market position and continue to provide the trade with high-performing stove appliances.”
The agreement marks the latest development in a strong relationship between Lloyds Bank Commercial Banking and Hunter Stoves. In 2012, when the business switched banking providers, the bank offered a £300,000 Enterprise Finance Guarantee loan for working capital. In 2014, it provided a £381,000 loan coupled with a £118,000 Regional Growth Fund grant to support the purchase of a factory site in Camelford.
