Finance solutions for seafood specialist Icelandic

The company, the UK subsidiary of the Icelandic parent, Icelandic Group hf, has transferred its banking to the Leeds-based RBS CIB and RBSIF teams at a time when the group has undergone a thorough financial reorganisation, resulting in a sharper business focus and a substantially stronger balance sheet.

Icelandic Group UK supplies major supermarkets with fresh, chilled and frozen seafood products. The company, which started operations in the UK in 1955, is made up of three divisions: Seachill, Icelandic UK and Coldwater. The company employs 1,300 people in the UK and is currently selling in the region of 40,000 tons of fish and seafood a year in the UK market.

RBSIF will support the working capital requirements of Icelandic Group UK Ltd by way of a £13m Invoice Discounting Facility. In addition, RBS CIB will provide ancillary banking facilities including corporate cards, letters of credit and an FX line to Icelandic Group UK.

The parent group, Reykjavik-based Icelandic Group hf, has an international network of independent production and marketing companies in Europe and Asia. The groups’ total revenue from continuing operations was €525 million during the year. The group’s equity was €178 million and the year-end equity ratio stood at 48%. In the UK, the company has had notable success with its Saucy Fish Co. brand, which is the fastest growing seafood brand in retail in the UK.

"Royal Bank of Scotland was able to deliver innovative solutions tailored to our needs such as the invoice discounting facility, and it is this high level of service that can really help a firm like Icelandic Group UK to seize market opportunities."

Keith Moody, financial controller for Icelandic Group UK

"We’ve worked hard to bring Icelandic Group UK over as a client and I’m delighted that the team has been successful. The food sector has become a core competence and strength for RBS CIB, and the fact that Icelandic Group UK has moved its account to the bank is further evidence of this."

David Clarke, relationship director for the Leeds office of RBS CIB

"We are delighted to have acquired the receivables finance business of Icelandic Group UK. This group represents a high quality operation, dealing with an enviable blue-chip client base. We look forward to expanding our services to Icelandic as its strategy unfolds."

Andy Pickford, director corporate, RBSIF