Pet food manufacturer MPM Products, producer of the Applaws range of products, has appointed advisers to seek additional funding as it targets sales of ?50m within two years. The Macclesfield firm, which makes dog and cat food, has has enlisted the help of the Manchester office of PwC.
In the year to the end of 2012, it achieved 56 per cent growth to post sales of more than ?17m and underlying pre-tax profits of ?1.8m. Managing director Julian Bambridge told the Manchester Evening News the firm is on course to post earnings of more than ?3m on a ?27m turnover this time around. And as it looks to smash the ?50m revenue barrier by the end of 2015, MPM is exploring a variety of options to welcome fresh investment.
MPM currently has three joint shareholders, who are founders Roger Wood and Roger Coleman, along with John Kinsey.
Mr Bambridge told the Evening News the firm would consider welcoming on board an equity investor, in the form of a private equity house or investment fund. He also said it ?remained focussed? on hitting its 2015 sales target, quashing talk of a potential sale in the short term. He added: ?Like any medium-sized rapidly-growing business, securing funding is key to keeping our growth going.
?We wouldn’t turn the right acquisition down but it is not part of our strategy right now. We are about growing our brands and we will continue to do that.?
MPM has opened offices in Sydney, Australia, and Atlanta, America, in recent years and Mr Bambridge said the continent was now on its radar. He added: ?Sales in Europe are growing to the extent we would look to open an office there next, if anywhere.?
MPM has two core product ranges, Applaws and Encore, which are available in UK supermarkets including Sainsbury?s, Tesco, Waitrose and Ocado.Its products are already available in 33 countries across Europe, the USA and Asia Pacific. It recently started trading in India and is hoping to launch in South America this year, both markets where it says the growth of middle class consumers presents an opportunity.
Mr Bambridge said: ?We have recently secured additional bank funding with HSBC, however to continue the rapid pace of expansion we need future additional investment and therefore we have appointed PwC to help us do that.?