Producers of high quality precision components
Established in 2000 and based in Wiltshire, Southern Precision Ltd has an excellent reputation for producing the highest quality precision components and assemblies that are derived from a variety of materials that demand thorough engineering discipline, from initial samples and repeat production.
The business consists of a small, dedicated team of specialist engineers who are committed to providing excellent customer service and who strive for continuous improvement.
In December 2014, Stephen Maddern, Director of Southern Precision, knew that their existing CNC lathe needed to be replaced. He had two options; to buy a brand new machine or to source a good quality second hand machine, with his preference being the new machine.
With a new machine worth significant investment Stephen made a decision to seek financial support for the purchase.
Working with Close Brothers
The directors at Southern Precision were aware of the Regional Growth Fund (RGF) and contacted Matthew Graham at Close Brothers Asset Finance to find out more about how they could apply for a grant.
Matthew explained the Close Brothers Asset Purchase Scheme, which delivers grants from the RGF on behalf of the government, and quickly assessed that Southern Precision would be eligible.
Close Brothers guided Southern Precision through the application process, and the company was successful in receiving a grant worth 20% of the total cost of the new asset.
To cover the balance of the purchase, Matthew structured a five-year Hire Purchase deal, with repayments tailored to suit the needs of the business.
Expanding capacity and accuracy
Stephen Maddern said: “We took delivery of the new CNC lathe in April 2015, it’s now installed, cutting metal and we’re expecting it to begin paying for itself in terms of the expanded capacity it allows us.
“It’s the first brand new machine we’ve had, and certainly the most efficient one we have. Getting the RGF grant and the new machinery has also allowed us to safeguard two jobs and to continue running an apprentice scheme; two things which are very important for the future of our business.
“We’ve worked with Close Brothers a few times to fund assets now, and our experience has been very positive. The turnaround times are always very quick and they have a good understanding of my business,” he added.