Refinancing of Croft Associates
HMT, led by Director Paul Read undertook financial due diligence for Santander Growth Capital on their growth funding for Croft Associates Limited (“Croft Associates”), the UK’s foremost developer of packaging, storage and transportation solutions for radioactive waste.
Oxfordshire based Croft Associates was established in 1980 by Dr Robert Vaughan and designs containers for sectors that transport or store radioactive material, including government organisations, private companies in the nuclear sector and medical equipment suppliers.
Croft has recently developed shielded container designs for the long term on-site storage of radioactive intermediate level waste material. These new container designs, coupled with a strong desire by the UK government to re-establish a UK nuclear supply chain, will reinforce Croft’s position as a leading UK supplier to both Sellafield and Magnox.
The financing includes growth capital from Santander’s Breakthrough Programme, which aims to help Britain’s fastest growing SMEs. Croft Associates is set to increase its staff headcount by 20 high value jobs and expects to generate rapid and substantial growth.
Paul Read commented:
“Croft operates in an innovative market and with the development of the new designs and support from Santander, Management are in strong position to lead the business through a period of rapid and significant growth.”
Clive Beattie, Chief Executive of Croft Associates, commented:
“We are currently in an exciting period of transition and growth. Over the last couple of years we have made significant investment in research and development to pursue substantial new market opportunities. The financing from Santander will help us deliver our new container designs which are a cost efficient solution to the huge problem of long term nuclear waste storage in the UK. “
“Santander’s Growth Capital package is a way of mixing traditional debt funding with flexible investment finance and the bank’s efforts to properly understand our business and assess the risks involved , supported by the due diligence work performed by HMT, has led to a close working relationship with a team that fully understands our vision and ambition.”
Martyn Drake, Director of Santander Growth Capital, commented:
“Santander is delighted to be supporting the growth and transformation of Croft. The type of cash flow lending provided by Santander Growth Capital requires a thorough understanding of the business, its financials and future growth prospects. I have worked with HMT on a number of occasions now and was delighted with the approach taken in providing the necessary financial due diligence report to help in that analysis.”