JOHNSTONS is looking to continue a successful expansion after securing a £5million overdraft facility.
The supplier of luxury cashmere clothing – whose turnover has risen by 10 per cent in two years – has seen rising sales in export markets, including Asia and the Middle East.
But explaining additiional finacial support from Lloyds Bank Corporate Markets in Aberdeen, Hawick managing director Nick Bannerman said: “It is a facility which we need to fund purchases of cashmere fibre which has risen by 70 per cent over the last 18 months.
“As we are the only vertical company in Scotland buying fibre and turning it into yarn then into garments, and as our business is cyclical, we only need the facility for five months as we are profitable and cash generative; we have been back in the black since August.”
The company’s managing director James Dracup says they have invested in a number of new looms to increase capactiy and flexibility, adding: “We’re delighted to have the support of Lloyds as we have a very interesting business model. Although export markets are levelling out, we still need funding in place to cover seasonal peaks and troughs.”
Graham Fiddes, relationship director, Llyods Bank Corporate Markets, commented: “Our funding will allow the company to build up stocks for a new season of designs, attract new staff and continue the successful growth path which James Dracup has put the company on.”
Mr Bannerman, added: “Johnstons of Elgin is the largest and most successful textile company in Scotland and will remain so. We are currently implementing a three-year strategic plan to increase turnover and profitability working closely with customers, both current and new, in overseas markets especially and with the help and determination of our highly-skilled staff in the Hawick and Elgin factories.”