The family-owned company has agreed extra funding of up to £6m with its existing bank HSBC to help pursue its five-year growth plan and boost sales to £250m by 2022. The agreement will allow it to increase capital expenditure from £250,000 to £2.2m this year to support growth of the brand.
Next week, Seabrook will start production on a new range of larger pillow packs with new lines to hit supermarket shelves over the next few months. "The top 20 products account for £160m per annum. This offers Seabrook an opportunity to grow the brand, sales and share," said Seabrook MD John Tague. "Currently we have singles and six-packs and there are volume opportunities for bigger brands with different pack sizes to offer consumers better value."
The manufacturer's 'Goodbye salt, Hello flavour' range of crisps, launched earlier this year, was already gaining good traction, with imminent distribution tie-ups set to boost sales, added Tague.
"The future looks quite bright and even brighter once this extra funding goes through. We're hoping we won't use all of the facility and growth will come through quickly."
Seabrook has more than doubled turnover in the past two years to £28m but industry sources have suggested it will require external investment to hit its ambitious growth targets.
"They'll need big pockets if they're going to make that transition from a regional player to something nationwide," said one M&A source. The brand was an attractive target for trade and private equity players, the source added.
Tague did not rule out outside investment further down the line but confirmed the company was not actively seeking a buyer. "As it stands now, we're not up for sale," he said. "We're in the process of completing a banking transaction that will secure the future of our business for three to five years."