This latest investment from UKSE will help the firm bounce back from the tripling energy costs it suffered in the last year, which have significantly hampered its expansion plans.
The loan is a mixture of working capital and investment to update equipment and is the third round of financial support provided to the baker.
Commenting on the funding, Talgarth owner Howard Hughes said: “This is a very successful business and has grown steadily over the years, but the unprecedented rises in energy costs were a serious problem.
Creating jobs
“Overall, though, the market for our products is strong and this means we can move forward with our plans to create another 10 jobs in the short to medium term and look confidently ahead.”
Talgarth Bakery has a wholesale operation supplying baked and frozen savoury goods across South Wales to Bako and Castell Howell and to around 250 independent retailers.
In 2020 it bought Bromby’s a sandwich company based in Whitland, which supplies sandwiches to retail stores, hospitals, schools and other institutions. The firm also owns the Clarks Pies brand and has a retail shop in Maesteg.
UKSE area manager Rob Barber added: “We have been able to step in to help Talgarth deal with these considerable problems in the economy that have caused difficulties for so many businesses, particularly ones with high energy use at a time of volatile prices and uncertainty.
“Talgarth is an important employer in the area and we are delighted to have been able to provide this support and help build a secure basis for the business going forward.”
Government investment
Talgarth has received support from the Welsh Government funded Investor Ready programme through BIC Innovation.
Linda Grant, managing director of BIC Innovation commented, “We are very pleased to have been working with Talgarth Bakery through the Investor Ready Programme, which supports Welsh food and drink businesses to prepare for and secure investment.
“Our team comprises experienced and skilled accountants who work closely with clients to guide them through the investment process, providing mentoring as well as a critical sounding board to ensure detailed and realistic business plans, forecasts and cashflows to support funding applications.”
Meanwhile, Growing Kent & Medway is offering a share of £600,000 to prospective innovators focused on finding sustainable improvements within the fresh produce, food and drink supply chain.
