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    Designing and manufacturing pioneering technological solutions for the global oil, gas and petrochemical market, Alderley plc operates in a tough global environment. It needed a trade finance facility it could count on to provide an international competitive edge.

     

    With a turnover of £65m and more than 300 staff across its global network of offices in England, Scotland, Dubai, Saudi Arabia and Russia, Alderley plc boasts over 50 years’ experience in the oil, gas and petrochemical industries.

     

    Facing an increasingly complex competitive environment, the company is working hard to stay ahead of the competition on a global stage.

     

    “As a UK exporter operating in the global oil and gas sector, it’s tough,” explains Alderley CFO, John Medcraft. “We’re competing with companies from the US, from China and from both Western and Eastern Europe. We’re constantly facing the challenge of being able to support both our delivery and our quality promises.” In a climate of global caution, when even governments are not free from the threat of default, customers are demanding ever more stringent and all-encompassing guarantees from suppliers to safeguard project spend.


    In the face of these challenges, the strength and depth of Alderley’s five-year relationship with Lloyds Bank has really made a difference. Simon Robinson, Lloyds Bank Trade Director, worked closely with Alderley to deliver a trade finance solution that worked for the company.

     

    “The key thing is that the facility provides both working capital and bonding requirements,” says John. “Sometimes a customer will want an advance payment guarantee to support any upfront payment being made. Sometimes, even when we’re tendering, they’ll want a bid bond to show we’re serious.


    Then there are performance guarantees, because our projects often have long lead times between purchase order and delivery. And then, finally, there’s often a warranty bond.

     

    “All of these are made available to us under the trade finance facility. Without that facility in place, we would be restricted in our ability to compete globally.”

     

    For Simon Robinson, delivering the right solution “boils down to understanding what a customer needs, how their business operates and what their aims and ambitions are. By getting a firm grip on those details and developing a trusted relationship with John, we’ve been able to create a solution that can support the business going forward.”

     

    For John, another key feature of the facility is how it also supports the working capital requirements associated with these contracts. “All of it is secured against the contract itself,” explains John. “As the contract completes and everything unwinds, the Bank’s facility is repaid and we are able to move forward on to our next project.”

     

    In addition to the trade finance facility, Alderley also has an overdraft facility that can be supported around the Group. The business also uses the Bank’s currency and FX management solutions, having recently agreed $8m forward contracts with Lloyds Bank.

     

    With plans for future growth, John is confident in the support of the Lloyds Bank team: “What’s attractive is that the Bank tunes its facilities to work with the mechanics of the business; they understand and respond to our needs.”

9/17/2019 4:04:37 PM