Coventry machinery distributor secures £15 million for Trust plans

Published by

Nicky Godding

NCMT, the specialist distributor of computer-controlled machinery for metal cutting and grinding applications, has secured £15 million of committed facilities from Santander Corporate and Commercial to support its Employee Benefit Trust (EBT) plans.

Founded in 1964, NCMT, operates from three sites in Coventry, Thames Ditton and Bury, near Manchester.

It is the long-term exclusive UK agent for leading Japanese machine technology firms Makino and Okuma, and the company also holds exclusive distribution rights across Europe for the Makino VIPER range of high-performance grinding machines. NCMT mainly supplies to manufacturers operating in the high-tech end of the aerospace sector and its clients include Rolls-Royce and General Electric.

NCMT’s recent trading performance has been impressive, buoyed by sustained demand in the aerospace sector, a successful entry into the medical sector, and strong growth in overseas markets. In FY19, NCMT achieved revenue of £49.0m and EBITDA of £5.0m, which led to the company being listed in the Sunday Times Profit Track 100 for 2019.

Dave Burley, Managing Director of NCMT, said: “Following a competitive process to select our banking partner, we are pleased that Santander is supporting NCMT with this transaction and we look forward to establishing a close relationship going forward to help realise our growth ambitions.”

Emily Davis, Structured Finance Associate Director, Santander Corporate & Commercial, said: “NCMT has delivered an impressive growth record, is internationally focused and backed by an excellent management team. We are very pleased to have provided a flexible financing package to support the EBT share purchase and are delighted to be have been chosen as its banking partner at this exciting time in the company’s strategic development.”

Josh Thorneycroft, Deal Advisory Senior Manager, at Mazars said: “It has been a pleasure to work for such an entrepreneurial and employee-focussed business as NCMT, that has experienced strong growth in an exciting sector. In a highly competitive process, Santander were able to demonstrate their ability to offer a flexible package that worked for the dynamics of the business, and I have no doubt that they and NCMT will enjoy a close relationship going forward.”

Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe. After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts. She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.