Hill Station seeking further cash to complete big move

- Last updated on GMT

Related tags: Ice cream maker, Costs

Bosses at ice cream maker Hill Station said they were confident of finding extra cash to support growth plans, despite failing to secure additional...

Bosses at ice cream maker Hill Station said they were confident of finding extra cash to support growth plans, despite failing to secure additional funds from existing backers.

Negotiations with alternative finance providers, including shareholders, were under way, said the md Charles Hall.

The company, which is in the process of consolidating its production into one plant at Cwmbran, South Wales, became the UK's third-largest ice cream business last year after a reverse takeover deal to acquire Loseley Dairy Ice Cream and Granelli McDermott.

However, the consolidation has been delayed by several months as new kit is installed at Cwmbran and the company has been forced to keep its Cheadle factory open for longer than anticipated, incurring operating costs above original expectations.

The build-up of stock in preparation for Cheadle's closure had also increased costs, said Hall. "Our bankers had agreed in principle in the summer to advance additional overdraft and asset finance facilities from existing bankers. However, contrary to their earlier indications, they [subsequently] informed us that they would not provide the new additional facilities."

He added: "Once our operations have been fully consolidated at Cwmbran, our total fixed costs will be reduced and management will be in a position to further improve operating efficiencies."

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