Bibby Financial Services will continue to innovate for growth, says UK CEO
Outstripping the market with a 10 per cent growth in deal numbers in the past financial year and an increase of £36m in available funding, Bibby Financial Services UK CEO David Postings is determined to build on this growth in 2012 and beyond with product innovation and an even bigger fund pot for UK small and medium-sized enterprises (SME).
On a global scale, with the opening of its New Zealand business and the strengthening of its Hong Kong operations, Bibby Financial Services now has 46 offices in 14 countries across Europe, the Americas and Asia Pacific, with a 6,000-strong client base and £6bn of debts factored worldwide. The company also experienced a 17 per cent growth in pre-tax profits to £41.2m, following a year of strong growth across the globe.
Contributing to the organisation’s success in 2011, Bibby Financial Services UK reported a pre-tax profit of £27.5m. The company is currently providing invoice finance led funding to nearly 4,000 UK businesses, handling annual client turnover of £3.9bn and advancing in the region of £342m.
Commenting on the results, Bibby Financial Services UK chief executive, David Postings, says: “With the recent report from the BIS taskforce concluding that businesses have become too reliant on bank funding and should be making greater effort to seek out alternative sources of finance. We are delighted to know we are helping to address the funding gap which has developed in recent years and will continue to use innovation as a source of growth to provide much needed funding for businesses in the UK.
“The taskforce predicts a shortfall of between £84bn and £191bn in funding over the next five years and recommends an increase in the supply and take-up of alternative sources of finance, which we will be wholeheartedly supporting.”
As the home of parent company Bibby Line Group, the UK remains Bibby Financial Services’ predominant profit contributor, but its activities outside the UK have generated profit of £12.6 million in 2011 as a result of growth in income.
An increase in pre-tax profits of 93 per cent in Europe and North America during 2011 made a significant contribution to this success.
Simon Featherstone, Global Chief Executive of Bibby Financial Services, adds: “The 2011 results are certainly encouraging and we are delighted to see these coincide with record client satisfaction levels. Increasing from 90 per cent in 2010 to 95 per cent in 2011, clients attributed the company’s ability to deliver on its promises and investment in building strong relationships as key factors.
“Many global economies are still being seriously hampered by a lack of support from their respective governments. According to UHY, the international accounting and consultancy network, overall bank lending to businesses in the G8 nations is down four per cent since the start of the financial crisis in 2008. However, we’ve seized the opportunity to expand our international operations and provide invoice finance lead funding to SMEs across the globe which might otherwise have found access to working capital funding restricted.”
Bibby Financial Services has enjoyed continued success in the Asia Pacific region during the past twelve months. The organisation has rapidly grown its business in Australia, securing its market position as the number two provider of invoice finance solutions in the country. Bibby Financial Services' presence in the region has also been reinforced with the opening of its office in New Zealand, further investment in its Hong Kong operations and additional sales offices across India.
In the UK, the business has continued to build on its market leading position, writing one in seven of all new invoice finance business contracts within the domestic market as well as being named one of The Sunday Times’ 100 Best Companies to Work For in 2011.
Looking ahead, Featherstone adds: “With a solid set of results for 2011 and new additions to the leadership team with the appointment of Simon Davies, our new Global Trade Finance Director and a new Chief Executive for the UK, David Postings, we are in great shape for 2012 and beyond.
“Despite the World Trade Organisation predicting that global trade will be weaker this year than in 2011, it does expect exports to increase by 5.8 per cent in 2012. Bibby Financial Services is well placed to help businesses take advantage of this opportunity through continued access to invoice finance-led funding solutions.”
“As highlighted during a recent review of the global economic situation by the trade ministers of Brazil, Russia, India, China and South Africa (BRICS), there is an ongoing need to address investment to the SME community, an issue which Bibby Financial Services is committed to supporting in 2012.”