Browns to expand following loan deal

BROWNS Food Group, the family-run processor of chilled and frozen meat products based in Dumfriesshire, is embarking on an expansion plan south of the Border after securing finance from Lloyds Banking Group.

The new deal, secured from the bank's corporate markets team, boosts the group's overall funding package by 4.5 million, including an extension of Browns' working capital facilities and a new term loan to assist with the purchase of a cold store unit at the Port of Tilbury in Essex.

Browns has a cold store unit in Dumfriesshire, but the continued growth of the company means it is often running at full capacity. The business will now be able to meet growing demand thanks to the additional storage space.

Ian Knox, relationship director at Lloyds' corporate markets team in Edinburgh, said: "The food and drink sector is a growth market for us, and for Scotland overall, and we're pleased to help support this family-run firm as it seeks to continue its expansion across the UK.

"The new facilities will help the group to take greater advantage of the wider UK market and strongly grow its business in the south."

Established in 1885, Browns produces bespoke products for supermarkets, independent retailers, wholesalers and food service companies.

Browns reported a turnover of 105m in 2009 and employs 750 people in the UK.

Managing director Wayne Godfrey said: "Browns Food Group has a long-standing relationship with Lloyds Banking Group, which has assisted with the development of the company for over 20 years. Our new facilities support the ongoing growth of the business and the new cold storage unit will help us service London and the south of the UK more effectively.

"The current economic situation remains a challenging one. However, our partnership with Lloyds and its continued financial support put Browns in a good position to take advantage of the recovery."