| Expansion
& growth strategies
Business growth, be it organic or by way
of acquisition, will generally lead to increased working capital
requirements. In some instances, this requirement is met in
full via internally generated cash profits or capital injections
by the owner(s).
More often, however, funding lines are normally
required to support the build-up of current assets as sales
increase and the end customers avail of trade credit.
Receivables and stock finance are ideally
suited to this growth as the funding grows with the business
activity.
Have a look below at some of the businesses
we have supported in this scenario:
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£1.1m Precision Engineering Business
£1.1m refinancing to support growth strategy
Our client is a precision engineering company,
specialising in machining and assembly using aluminium and
stainless steel, for the telecommunications, semi conductor
and medical sectors. Based in Oxfordshire, the company started
trading over 30 years ago and now employs 100 staff, with
an annual turnover of approximately £8m.
A long established, experienced business, our client has a
clear growth strategy using success to date as a springboard
in exploiting current and future market potential. Introduced
to our client by an independent invoice financier, who recognised
that our specialisation in the £2m to £100m market
would serve better to produce a robust solution to meet the
client’s needs EFE took time to understand both the business and their plans
for the future. With this information, he was able to quickly
develop a structured, flexible solution that would provide
our client with the financial headroom required to build on
their success and achieve targets going forward, without the
constraints of their existing financial arrangements.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£3m CD/DVD Distributor
£3m facility to support growth strategy
Specialising in the distribution of blank
CD’s, video, mini disks and all associated storage and
racking systems, our client has built up a significant business,
now trading with an annual turnover of over £10m. Not
only distributing own brand items, our client is also a key
distributor for a number of significant, well known brands
to a range of blue chip retailers, both in the UK and throughout
Europe.
Recent success at securing a key retail supply
agreement and a new brand distribution contract has increased
our clients requirement for a flexible source of working capital
finance – both to fund standard industry credit terms
and to support the seasonality inherent in this business.
Based on previous experience, EFE
developed and delivered a structured finance proposal that
would not only provide our client with the ongoing working
capital required to sustain current levels of seasonal activity,
but would also provide the flexibility for subsequent growth
and expansion.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£500k Wholesale Indian Jeweller
£500k to supply increased working capital facilities
to support growth strategy
Having commenced trading in 1997 and based
in Middlesex, our client specialises in the wholesale of high
quality jewellery, such as 22 carat gold rings, bracelets,
earrings and necklaces, to the Indian community.
Turning over in excess of £3.3m, our
client has developed a very strong loyalty amongst their
customer base, which has led to a steady increase in turnover
in past number of years. Our client is now seeking to expand
its supplier base, predominately within India and Singapore.
To effect this expansion EFE
assessed both imminent and expected cash flow requirements
and delivered a funding package that would comfortably allow
our client to implement its proposed business strategy.
Let us help you unlock the potential of
your business or investment - contact
us today.
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£10m Computer Peripheral Supplier
£10m refinance to allow company expansion
Launched in 1990, our client sells computer
peripherals such as printer cartridges, toners and discs to
trade and wholesalers. Based in the North of England, the
business is focused predominately on telesales operations
and operates in a very competitive environment. In order to
expand their stock holding capability, our client has recently
built new premises in the North of England, availing of lower
square footage costs and greater capacity that the existing
London based warehouse allows. With this relocation of the
warehousing and purchasing functions, our client will be making
slight adjustments to its structure.
With a turnover of £56m, the business
has been expanding at a good rate year on year and has the
opportunity to continue to do so. As a high volume, low margin
company, our client is selective about the business it takes
on in order to maximise individual customer profitability.
In order to allow our client to complete
the purchase their of new premises and take benefit of the
enhanced stock holding facility EFE delivered a specific invoice
discounting package, far in excess of that available from
the existing financiers. With good management and systems
in place and excellent potential for growth, the incremental
funding will allow our client to continue to avail of the
opportunities that exist in this competitive marketplace.
Let us help you unlock the potential of your
business or investment - contact
us today.
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£5m Aluminium Smelting and Casting Business
£5m funding to support business strategy implementation
of a profitable business
Based in the Midlands, our client owns an aluminium smelting
business, purchasing scrap metal from a large number of suppliers,
melting and making aluminium ingots that are sold on to customers,
often in the automotive trade. While approximately 35% of
the business is within the UK, the remaining 65% is to Northern
Europe, where our client normally deals with multinational
companies.
As a result of the successful implementation of a turnaround
strategy, involving a focus on core activities, operating
efficiencies and profitable customers, our client now runs
a forward looking and profitable operation.
The next stage of development includes considering
vertical integration, namely purchasing back scrap metal from
customers and progressing the casting side of the business.
To allow the business continue to on its growth trajectory,
our client recognised the need for the value added proposition
that a niche invoice finance provider can provide. To this
end EFE developed
a tailored invoice finance facility, increasing the finance
available to fund a progressive business strategy and ongoing
working capital requirements.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£3m Power Tool Distributors
£3m to fund an aggressive growth strategy
Established in 1994, our client’s original
product range focussed on providing safes, primarily to locksmiths.
Ownership was transferred in 1999 when the current directors
bought into the £350k turnover business by purchasing
it outright. The purchase represented a new challenge following
over 20 years experience in the power tool distribution sector.
Through analysis of the product portfolios
provided by the existing supplier base, the new directors
spotted an opportunity to secure exclusive distribution of
a high quality, but unfamiliar, Northern European power tool
brand into the UK market.
Initially securing a £50k order for
this range from an existing ‘safes’ customer was
the predominant trigger in allowing the business to develop
their power tool distribution line and grow from a £350k
turnover business in 1999, to turning over in excess of £17m
in 2002.
2003 will see our client focus on increasing
the volume of sales of existing product lines, expanding into
new products, such as compressors, pumps and welding equipment
and expanding their client base with other well known and
established retail outlets.
Currently availing of a factoring arrangement
with the invoice finance arm of a large Bank, our client wished
to simplify their administration procedures by switching to
invoice discounting and also required increased flexibility
in their facility to implement their aggressive growth strategy
and deal with seasonal factors.
Let us help you unlock the potential of your
business or investment - contact
us today.
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£500k Specialist Manpower Placement Business
£500k to support aggressive growth plans
Set up in 1994, our client is a specialist
manpower placement agency, supplying both consultancy services
and highly skilled support staff to a range of niche industries
such as IT and telecommunications, aviation, defence and engineering.
Our client not only enjoys a presence in
the UK marketplace, but also in 3 other European markets.
After rapid but measured growth, their customer portfolio
consists mainly of blue chip, international organisations.
Short term contract placements and long term appointments
made by our client cover the spectrum of experience and seniority,
ranging from Director level to graduate trainee and from ground
level administrative support to senior policy advisor.
The company is run by experienced staff, all of whom have
enjoyed substantial career experience working across each
of the niche market sectors. Their experience encompasses,
amongst other things, senior air traffic management and flight
operations, highly skilled technical consultancy and seasoned
human resource management.
Despite tough economic conditions in their market worldwide,
our client has maintained profitability over the last couple
of years and now, with an improvement in the contractor market,
have developed an aggressive growth strategy to maximise the
potential of the upturn. After discussion with the management
team, EFE
delivered a tailored revolving credit facility that would
provide greater flexibility and headroom for growth beyond
their existing overdraft facility.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£4.5m Supply Chain Management of Engineering
Products
£4.5m to fund aggressive growth strategy
Our client provides a logistics and distribution
service for a range of automotive and general engineering
companies. Based in Manchester, with distribution centres
in Liverpool, Birmingham and East Anglia, they manage supply-chain
issues for customers and specialise in J-i-T, DFT (Demand
Flow Technology) and CanBan systems.
This high quality, £10m turnover business
was purchased through an MBO in 2001. The management team
have since successfully expanded their product range, further
developed their state of the art facilities and focussed on
winning new business, by securing contract driven future income
from a range of blue chip customers. With plans to build a
£100m plus turnover group, the team has developed a
robust and aggressive growth strategy and are actively implementing
various initiatives to achieve significant success in this
space.
Based on a strong business proposition, quality
management and an excellent track record,
Enterprise Finance Europe in the Northern Region delivered
a competitively priced and flexible stock and debtor finance
package to replace existing facilities and provide the headroom
required to support the management team in realising their
growth ambitions.
Let us help you unlock the potential of your business or investment
- contact
us today.
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MMF Group looks to grow with funding package from Enterprise Finance Europe
Smethwick-based MMF Group, is looking to continue their expansion
of its business after one of the UK's leading asset-based
lenders, Enterprise Finance Europe (EFE), has provided an
asset backed funding package.
MMF, based on Woodburn Road in Smithwick,
employs 55 people and is a major distributor and manufacturer
of commercial flues and chimneys. Established over 30 years
ago, the company has a £5.7 million turnover.
In the Midlands, MMF has undertaken projects
at Birmingham Exhibition Centre and Birmingham District Hospital.
Other recent projects include working with British Aerospace,
Burmah Castrol, Canary Wharf, Vauxhall Motors and Millennium
Point. The company also supplies all the major builders merchants
groups in the UK.
The company's range of products include;
boiler flue systems, fan systems, mast structures, chimney
liners, generator exhaust flues and commercial kitchen canopies.
Dave Thomas, MMF's managing director said the funding package
would enable MMF to focus on growing its business in what
is a nice sector of the building materials market. "EFE
immediately grasped the seasonal nature of our business and
structured the package accordingly."
Enterprise Finance Europe associate director
Peadar O'Reilly led the deal and added; "This was an
excellent opportunity for EFE to provide a fully asset backed
facility, incorporating invoice discounting, property, inventory
and plant & machinery to a successful Midlands manufacturing
company with a very strong management who are really delivering
in a market going through challenging times."
Gately Wareing (Carol Betts) advised Enterprise
Finance Europe.
PHOTO: Right - Dave Thomas (MMF's managing
director) with Peadar O'Reilly (associate director with Enterprise
Finance Europe)
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