Leumi ABL Managing Director, Phil Woodward, reflects on the market as we enter 2010…

Having steered a path through what is undoubtedly the worst global recession in living memory, Leumi ABL is pleased to look back on 2009 and report continuing growth: discounted turnover has almost doubled and both client numbers and funds-in-use have increased.

As clients seek to maximise available funding, the market appetite for structured asset-based lending facilities continues to grow.  Stock, plant and machinery are featuring in increasing numbers of deals alongside invoice finance as clients see this as a more flexible way to fund growth plans.  Now that many banks are reluctant to increase, and in some cases, continue overdraft facilities Leumi ABL has seen an increase in deal flow opportunities and this looks set to carry on.

Notable deal successes during 2009 include the backing of Walstead Investments, with its acquisition of Southernprint in July when Leumi ABL provided a £4 million facility in financial support.  Another significant print sector deal came in October with a £25 million working capital facility to a major UK printing group.

Supporting niche manufacturing businesses, Leumi ABL provided a £2.75 million confidential invoice discounting facility and a £200,000 stock line to two of Domes of Silence Group’s subsidiaries: Aluminium Shapes and Windmill Extrusions.  In a deal completed in November, Leumi ABL and its parent, Bank Leumi (UK) Plc, together provided a range of acquisition and working capital facilities to Polestar Foods to support their acquisition of the non-branded frozen desserts business of HJ Heinz Frozen & Chilled Foods.

Finance providers who can demonstrate trust, agility and flexibility are making a real impact, and have the potential to build a greater presence in the market as opposed to their position pre-crunch.  Many banks are moving into what they perceive as the higher value market, particularly with invoice finance where there has been a degree of consolidation.  Leumi ABL is exploiting this opportunity with the recent launch of Leumi Invoice Finance, tailored to the needs of smaller businesses.  The combined facilities of Leumi ABL, Leumi Invoice Finance and Bank Leumi (UK) now mean that clients can be supported with funding solutions at all stages of their business life cycle.

With the mood in the market more upbeat than at this time last year, we are funding new fledgling companies out of the recession and seeing many successful businesses which have been hampered by their bank’s reluctance to support them through tough times.  Real recovery may be slow to emerge, but we are seeing many good businesses across the UK that are well placed to thrive.

Due to the challenges of the past year, clients and their introducers are now looking for more certainty with any deal.  There is very little speculation in the market at present and this is likely to remain for a considerable time.  Introducers are looking for funding providers they can truly work with and who are serious about doing business.

As we enter 2010, Leumi ABL has a full pipeline of transactional work and much to build on as the economy begins to emerge from recession.

Article contributed by Phil Woodward, Managing Director, Leumi ABL

Email: pwoodward@leumiabl.co.uk
Tel: 01273 716202
Mob: 07900 802774
Website: www.leumiabl.co.uk