Holiday home maker targets growth with FDC and Shawbrook backing

A £30m-turnover East Yorkshire holiday home manufacturer is targeting further growth after securing funding from Shawbrook and Frontier Development Capital (FDC).
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Carnaby Caravans, founded in 1976 in Bridlington, is an established holiday home manufacturer.

The company is targeting further growth following a record year during which revenues grew by more than 50 per cent to £30m.

Specialist lender Shawbrook has provided an undisclosed funding package to Carnaby alongside backing from debt funder FDC.

The transaction, initiated by its shareholders Nigel Smailes (chief executive) and Tim Meadley (operations director), will enable Carnaby Caravans to pursue its growth plans, driven by a significant increase in the popularity of UK stay-cations and holiday homes.

Sandra Carter (sales director) and Mike Swift (technical director) join Scott Thornton (finance director) on the board, with all three becoming shareholders alongside Smailes and Meadley.

Nigel Smailes, chief executive at Carnaby Caravans, said: "Following the successful completion of this transaction and the new appointments to the board, we are eager to further strengthen our presence in our markets as we continue to serve our customers, existing and new.

"Shawbrook has an excellent reputation in our local market and this was proven by their ability to deliver. By getting to know our business and our needs they were able to craft a bespoke funding solution that will allow us to evolve the business and continue to grow as we look ahead. We are delighted to welcome Shawbrook alongside Frontier Development Capital as new funders to the business."

Carnaby Caravans was introduced to Shawbrook Bank and FDC by corporate finance advisers, Dow Schofield Watts (Roger Esler, Paul Herriott, Matt Spence), who led and structured the transaction on behalf of Nigel Smailes and Tim Meadley.

Roger Esler, corporate finance director at Dow Schofield Watts in Yorkshire, said: "We have worked with Carnaby Caravans over several years and witnessed both the growth in the business and the strengthening of its brand and reputation with leisure parks and holiday home owners alike. We are delighted to have advised on this transaction that brings new funders to the business as well as new appointments to the board at a time of unprecedented activity for the market."

Ondrej Okeke, of Frontier Development Capital, added: "FDC is delighted to be backing this highly operationally-skilled and experienced management team at Carnaby Caravans, who are stalwarts of the leisure home industry. They have nurtured a business with a long-established reputation for building products of superior design and quality and maintained a very loyal customer base.

"We are excited to be supporting the Carnaby team as the company enters the next stage of its growth story."

Daniel Martin, senior director within Shawbrook Bank's Corporate Lending team, said: "Carnaby Caravans is a very well-respected business across the markets it operates in and we are delighted to have been able to support their future growth plans.

"It has been a pleasure to work with Nigel and the team and it was clear from the outset that they are very passionate about the business so we are excited to seeing how Carnaby Caravans continues to develop over the coming months and years and are confident in its future.

"Our thanks go to the teams at Dow Schofield Watts and Frontier Development Capital, and all others involved, for their support on this deal."

Legal advice to the shareholders was provided by Clarion Solicitors (Jonathan Simms, Alex Cooper, Marie Pugh). Shawbrook Bank was advised by Shoosmiths (Anna Robson, James Foster). FDC also supported the transaction and was advised by Squire Patton Boggs. Management was advised by Gordons (Jonathan Asquez). Financial due diligence was provided by RSM. Murray Harcourt (Neil Sengupta) was tax adviser.

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