Exports on the rise at Sugden

Lancashire manufacturer Sugden’s specialist bakery hotplate equipment is selling like hotcakes overseas with growning exports success.

The Nelson-based business won a multi-million pound contract with a German bakery with support from the UK government.

Sugden is a world-leading designer and manufacturer of specialist hotplate equipment for the production of English muffins and crumpets.

After 40 years in the business, with big-name customers such as Warburtons, Sugden has benefited from rapidly rising demand for iconic British baked goods around the world – its English muffin lines are particular hot-sellers.

The company has seen its exports grow to account for 70 per cent of sales in 2016/17.

Thanks to its exporting success, in the last three years alone the company has tripled its turnover to £6.5m and doubled its UK headcount.

It current largest market it the USA, with significant sales across Australasia and Europe as well.

Sugden hopes to build on this momentum and expand exports into emerging markets in Central and Eastern Asia in the near future.

Last year Sugden won a major contract with a major German bakery for the sale of its top-selling English muffin production line.

Under the terms of the contract, the buyer provided an upfront payment to help Sugden finance production of the order. The buyer requested an advance payment guarantee in return – an assurance that Sugden would uphold its side of the deal.

However, as banks typically request a cash deposit in order to issue these guarantees, this would have tied up essential working capital and caused cash flow difficulties for Sugden.

UK Export Finance (UKEF) stepped in to help. UKEF is the UK’s export credit agency and part of the Department for International Trade, providing financial support and guidance to help companies take on, fulfil and get paid for export contracts.

UKEF worked with Sugden’s bank RBS and provided an 80 per cent guarantee under its Bond Support Scheme.

That meant the company could secure the advance payment guarantee from RBS with a significantly reduced deposit and hold onto sufficient cash to fulfil the contract.

 

 

[caption id="attachment_102555" align="alignnone" width="375"] Sugden's specialist hotplate equipment is in global demand[/caption]

Chris Baldwin, managing director of Sugden, said: “Without UKEF’s intervention this deal wouldn’t have happened.

“Our relationship with UKEF has been crucial to the success we’ve seen in overseas markets and helping us to maintain excellent relationships with our international customers.”

Steve Cowles, export finance manager for the North West, said: “I’m proud that UKEF was able to support Sugden on this important contract and this is a great example of how UKEF is working with banks to provide dedicated export finance to help more UK companies benefit from the opportunities that selling overseas can offer.”