Secure Trust Bank (STB) has provided battery supplier and manufacturer Denchi Power with a £1.25m invoice discounting facility.
Denchi was founded in 1996, as part of the privatisation of the UK’s Atomic Energy Agency. It trades in batteries for military use, and has provided the UK’s Ministry of Defence with over 60% of its Lithium-Ion cell battery supply since being awarded a contract worth £45m in 2002.
The invoice discounting facility from STB will allow Denchi to launch a new product in the UK, named “Slice” battery.
Slice batteries will be able to capture power from intermittent renewable energy sources, to provide an alternative supply to the National Grid, with civilian applications. They are currently in the testing stage, and are expected to be commercialised in 2018.
Tony Young, regional sales director at Secure Trust Bank Commercial Finance, said: “Denchi Power has been at the centre of powering the British military for more than 20 years, but has now set its sight on revolutionising the utilities and energy market.
“As the sector continues to remove reliance on non-renewable energy, the Slice product has enormous potential for growth, particularly with the backing and ongoing investment from the government.
“With the flexible funding we have provided, the business now has the ability to use its profitable income stream to take this opportunity, alongside its long-standing relationship with the Ministry of Defence.”
Simon Blake, corporate finance partner at Price Bailey, the accountancy firm advising Denchi, said: “We worked with Denchi’s management team to identify its growth expectations, future strategic vision and funding requirements.
“The decision was taken to initially leverage the company’s existing debtor book, which was unencumbered. This funding solution has the advantage of the shareholders not having to dilute their existing equity stake in the company as well as paving the way for additional future funding.”