What do Kilmarnock do?
Kilmarnock Enterprises provide a range of commercial services to businesses like Trade Aid, Noel Leeming, and Fuji Xerox, such as product packaging and labelling, office services, e-waste recycling and others.
By providing a supportive and enriching paid work environment, Kilmarnock teaches adults with a range of abilities the skills they need to transition into open employment. Kilmarnock firmly believes in providing their employees with professional training, social development, health and wellbeing initiatives, and ongoing support. This helps show employees their individual value as contributing members of their community, and gives them the confidence and skills they need for success.
What is Kilmarnock’s structure?
Kilmarnock is a limited liability company wholly-owned by a charitable trust called The Kilmarnock Trust. The Kilmarnock Trust owns, governs, and supports the operational arms of Kilmarnock. This helps to ensure Kilmarnock is constantly expanding, diversifying, and seeking innovative new ways to improve the confidence, wellbeing, and proficiency of people with disabilities.
How did Kilmarnock access investment?
- Kilmarnock had a long operational history of almost 60 years before taking on investment. This was largely sustained through their business revenue, supported by some grant funding.
- Being a well established enterprise meant that Kilmarnock were in an ideal position for raising investment.
How did Ākina help?
Kilmarnock had secured a new premises and arranged a lease agreement with the developer, but purchasing the property was a much better option. It would support their mission by providing a secure place for employees to call their own and immediately improve cash flows since repayments on a loan would be lower than the cost of lease payments.
However, since Kilmarnock reinvested profits into their mission (i.e. the well-being and development of their employees) and therefore showed no profits on its balance sheet – banks would not lend to them.
Ākina provided the following services to support to Kilmarnock to support them to investment readiness:
What was the outcome for Kilmarnock?
After looking a little deeper into the business of Kilmarnock and its ability to repay a loan, the bank were comfortable to lend Kilmarnock $6.6 million. The remainder of the purchase price (including a deposit for the bank loan) was borrowed from other parties (including the property developer!) who all wanted to see Kilmarnock successfully purchase their new home.
Could Ākina be of help in developing your organisation? We run a series of programmes so head to our support page to find the right one for you.