Timber agency UCM Timber plc has restructured its financial and banking arrangements to support its growth and development strategy in what it predicts will be more “challenging” times for the trade in 2006.
The company has consolidated its group financial arrangements into a new agreement with Bank Leumi (UK) plc, a leading name in the trade finance and commodity finance markets. The agreement replaces arrangements with three other UK banks.
Mark Plews, UCM’s managing director, said: “UCM Timber plc has a two tier strategy. Firstly, we are seeing increasing international growth both in sourcing and selling, with cross-fertilisation between our international offices.
“Secondly, we believe the UK timber market will continue to consolidate and we intend to play a full part in that process, including further development of added value services.”
Mr Plews said both elements of the strategy require a strong financial position and the support of a bank that understands trade finance and the full range of financial instruments available.
He added: “Bank Leumi approached us with a very attractive package across the UCM Timber group, with a full mix of trade finance, foreign exchange, letters of credit and bill discounting, as well as the requisite physical lending facilities.”
Mr Plews went on: “We expect the timber trade to face a challenging time in 2006 with renewed pressure on margins and costs, and we were determined that UCM Timber would be in a strong position so we could take advantage of the opportunities that difficult times always bring.”
