A year on from a funding deal that secured its future and provided a base for expansion, a Bradford wool merchant and processor has boosted the working capital of one of its overseas subsidiaries.

Standard Wool UK, in Clifton Street, near Bradford City’s stadium, secured a £2.4 million loan for its Chilean subsidiary Jacomb Hoare & Co, whose origins date back to 1793.

The firm was advised by Grant Thornton which has been working for Standard Wool since 2005 when it advised on a management buyout led by company boss Paul Hughes.

Mr Hughes, managing director of Standard Wool, said: “This loan gives Jacomb Hoare & Co greater working capital levels to meet the demands of the global wool trading industry and importantly establishes the business with a Chilean based funding partner in Banco de Chile.

“Grant Thornton’s international network was instrumental in securing this funding following an introduction to their Santiago based advisory team.

“They were able to effect introductions to a number of Chilean based financial institutions as well as advising on local accounting rules which affect the business.”

Anthony Barrett, manager in Grant Thornton’s lead advisory team, said that organisations could look overseas with confidence when expanding their business if their advisors have the right connections.

He said: “Our international network has played a key role in expanding SWUK’s business operations. Since advising on the management buyout in 2005, Grant Thornton has helped the business establish operations in New Zealand in 2008 as well as now securing a Chilean based funding partner.

“Following the £13 million refinancing of SWUK in 2010, the business now has a funding structure to meet the demands of the global wool trading industry.”

In Chile, Jacomb Hoare was responsible for establishing the original wool trade in Patagonia.

The company buys wool from 600 farmers and produces spins tops at a processing plant which opened in 1989.

Standard Wool UK also has an operation in China and another subsidiary in New Zealand. In addition to its Bradford base, Standard Wool owns Thomas Chadwick & Sons in Dewsbury.

SWUK also scours fibre for wool merchants, supplies home-scoured wool and broken tops to spinners and manufacturers, trades in greasy and scoured wool and sells Chilean-supplied Punta tops to yarn spinners and cloth and knitwear firms.

Following the £13 million three-year funding deal last year, Mr Hughes said: “This will enable us to go forward with renewed confidence and continue to provide quality assured wools to our clients world-wide.”