A Weigh to a Manger (Published January 2006)
Malcolm Davies called early this year. He reminded me he had been a client of ours in 1998. He made machines used in food manufacture. His finance needs then were simple. His products since had evolved into a world-leading machine, now in demand from world-class food manufacturers.
His product symbolises one of the obsessions of the 21st century, food and more precisely its quantities. Come forth, the fully automatic multi-head linear weighing machine, controlled by pre-programmed software and operated by the human hand via a full size touch screen.
"The machine's speciality is handling sticky, coated or lumpy products..."
The machines produce convenience fast food meals. They weigh food components such as meat, salad, rice, pasta or the toppings for pizzas and deliver them to their trays. No longer will you have to peek underneath the cardboard sleeve in order to pick out the meal with the most sauce on it they are all the same.
The machine's speciality is handling sticky, coated or lumpy products using an ingenious feed system. And the automation enables users to achieve a payback of 7 to 10 months on their investment, a benefit when supermarkets are squeezing suppliers' margins.
One problem, AWP Systems Ltd was a fairly new company. Heavy development costs had been financed, but a large bad debt had brought down the last company. Orders were now weighing heavy but suppliers would not give credit, and customers would not pay before commissioning.
This is a complex trade finance requirement. It takes over 2 months to build a machine and there were 11 suppliers. Each machine is bespoke to the particular customer requirements. Our previous good experience with Malcolm was very helpful in persuading us to structure this complex facility.
The customers are world-class food companies who pay upon commissioning. We buy the components on credit, repaid from machine proceeds. This keeps our costs to the minimum for the client - always a popular move, and we all like to be popular!
Next year Malcolm is hoping to deliver about 24 machines so we can all indulge in more readymade meals!
(And we apologise about the heading; French scholars will understand.)
Written by Frances Walsh Trade Finance Manager
Download
the Article 'A Weigh to a Manger' at www.fairfaxgerrard.co.uk/docs/BusMon 0106 A Weigh to a Manger.pdf
<< Back to News Headlines