Lloyds Bank funds meat processor with ?5.2m

Lloyds Bank Corporate Markets in Aberdeen has provided funding to Inverurie-based Donald Russell, the renowned meat processor and butcher, to build a new fulfilment facility.

Expected to open in June 2011, the new ’5.2m facility will allow the company to expand the e-commerce side of the business while maintaining its high levels of customer service. Donald Russell hopes the new facilities will also create further job opportunities in the local area.

Currently employing 190 staff and with an annual turnover of ’25 million, Donald Russell has supplied finest quality meats to some of the most prestigious kitchens in the world and carries the Royal Warrant as suppliers of meat and poultry to H. M. The Queen.

Richard McKay, Relationship Manager at Lloyds Bank Corporate Markets in Aberdeen, said: ’Donald Russell has seen a great deal of changes not only in meat production industry but also in the types of customer they supply to. The boom in online sales has led to a new sales model and this new funding will ensure the business can benefit from new markets.

’For all the changes, the business’s high levels of customer service and the quality of the product have always been consistent and have seen the firm through when others have fallen away.’

Donald Russell management recently appointed Cavendish Corporate Finance to investigate interest from companies looking to expand into the online retail market. The business is still run by the original founders William Donald and John Stone alongside Hans Baumann as managing director.

Richard McKay added: ’It is no surprise to us that the company is doing so well, increasing sales and looking to expand. We wish the existing shareholders well with the sale of the company and are proud to have supported the business through the last four years and into strong growth.’

Lloyds Banking Group currently provides a range of services to the business, notably merchant services (facilitating telephone and online customer payments), asset finance (recent deals to fund packaging / refrigeration equipment) and day to day clearing banking services.

Ian Morrison, Business Development Director at Donald Russell said: ’Lloyds Bank Corporate Markets has been excellent in providing loan facilities that were easily available and accessible, their support has been superb. There is huge potential for growth in this sector and our current facilities are literally bursting at the seams.

’The Kintore development will allow us to meet the demands of our present customers and also provide the same high level of service to new customers, too. We are famous for our no-quibble guarantee but there is no point in having a great product or idea if you do not have the infrastructure in place to support it.

’We have a very good relationship with Richard and his team. They have attended marketing meetings and advised us on a wide range of issues over the last four years. They have really got to know our business and our ethos which means we not only have a mutual respect but also a relationship which is built on trust. It all proved to be a cost effective solution and our relationship with Lloyds Banking Group is now not just as our corporate banker but rather a key strategic partner.’