Friday, March 8, 2013

News: Planet X secures funding for further expansion


Cycle importer and retailer Planet X Ltd is set to create another 50 jobs in Rotherham over the next three years after securing a finance package from Barclays Bank.

Planet X specialises in time trial, road, track and fixed wheel bikes along with mountain bikes under the On One brand. They relocated to new premises at the Ignite development in Templeborough in 2009 and soon after acquired more space, opening a 16,500 sq ft warehouse in 2011.

The deal sees the day-to-day banking transferred to Barclays together with working capital, term debt, foreign transaction capability and Barclays will also be providing the financing for Planet X's interest-free financing deals.

It follows on from the £700,000 trade finance package from HSBC secured last year that enabled Planet X to import fully assembled bikes from overseas partners for the first time and expand its online coverage, boosting exports.

Established by keen triathlete, Dave Loughran in the 1990s to produce dirt, jump and trials bikes, Planet X specialise in internet sales and making bikes to order but the Rotherham base also includes a showroom and sales area.

The growing firm expanded into the US market with the acquisition of Titus in 2010 and establishing a base in Portland.

David Hanney, chief executive at Planet X, said: "Barclays funding underpins our growth plans. Our direct business model means we offer great quality and unparalleled service at highly competitive prices whether customers buy online, over the phone, or in one of our destination stores.

"The funding will help create 50 jobs over the next three years. As passionate riders the timing is perfect as we are all thrilled and excited at the prospect of Le Grand Depart coming to Yorkshire and the new partnership with Barclays will allow us to grow in the run up to Le Tour de France."

Hanney was chief financial officer at Sheffield retailer, Go Outdoors for five years until March 2012, during a time of significant exapnsion and helped them to secure a £30m finance deal and an acquisition of a significant minority stake by private equity firm 3i.

Pete Wilmer, relationship director at Barclays, added: "There has never been a more exciting time for cyclists in Yorkshire with Le Grand Depart in 2014 and the new funding will allow David and his team to take advantage of the opportunities arising, leaving the business well placed for future growth.

"This deal serves as a clear indication that Barclays is open for business for quality transactions in well managed companies."

The business is a much more professional unit than the one established and run by enthusiasts including a certain Sir Dave Brailsford CBE, current performance director of British Cycling, as its export sales manager.

As Brant Richards, chief designer and co-founder of On-One brand, recently described it: "Those were the days of a business in its infancy with no plan, structure, and where days and evenings were spent talking of the great Tour exploits.

"A great day would be judged not by turnover, sales numbers or gold medals but by miles on the clock and the pain inflicted on your co-workers."

Planet X website

Images: Planet X


Supported by:
More news...

  © Blogger template Newspaper III by 2008

Back to TOP