How Rodmatic Ltd released capital from their existing assets to fund further investment

Rodmatic Ltd

 

Company Profile

Rodmatic Limited is a well-established specialist CNC and production company based in Reading.

They have over forty years experience, working in a range of markets including fluid Power Aerospace, specialist automotive, Marine and Motorsports providing bespoke precise components.  

Working with so many sectors for many years has meant they have built a large international customer base.

Challenge

In the last few years, the company has fought against high fixed costs and fluctuations in the Euro. But with a huge new contract won through an American based company, Rodmatic wanted to look at releasing some capital out of the their existing assets to fund further investment back into the business and strengthen the business going forward to cope with the demand of the new contract.

Solution

Brian Steatham, Rodmatic Ltd Chairman has worked with Close Brothers Asset Finance in the past and contacted his local Area Sales Manager Jonathan Weston. They went through the best finance option that would fit the current climate and would work best for the business, without any disruption due to the demand of the new contract.

The best fit for them was Sale and HP Back, which a form of refinance. Jonathan was able to bring all existing agreements into one new finance agreement and reduce the overall monthly outgoings going forward, while releasing a significant cash injection back into the business.

Close Brothers long-standing relationship with Rodmatic meant Close Brothers were able to make a quick decision and get the funds released.

Result

Rodmatic are extremely busy with existing contracts and new projects and with the help of the exchange rate  making a massive impact as 80% of their work is exported, which with the current economic climate has seen a really positive start to the year. 

Quote from Brian Steatham: "I have worked with Jonathan for many years and he knows our business really well and when we were looking at our options we obviously thought of Close Brothers."

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