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Sale and HP back - Metal Co Ltd

Company profile

Metal Co Ltd is a specialist manufacturer of sheet metal products. The company works primarily for designers and manufacturers, producing complete or partial components and assemblies using stainless steel, mild steel and aluminium.

Their services include automated punching, laser cutting, press braking (bending) and robotic welding along with precision MIG and TIG welding. They also specialise in preparing and finishing mild steel, stainless steel and alloys.

Business challenge

By the beginning of 2012, Metal Co was experiencing increased demand for its products and realised they would need to invest in the business to increase their output. Managing Director James Dixon wanted to invest in additional staff members, a move that would in turn enable them to win new business.

He spoke to several banks about his requirements but found it really difficult to access the funding the business needed.

Solution

Metal Co met with Close Brothers in early 2012. James said: "Close Brothers took a completely different approach, it was refreshing. They were willing to take a good look at all aspects of the business and immediately understood the position we were in and what we hoped to achieve.

"The decision making process was quick and efficient and we agreed a £150k Sale and HP Back deal to refinance some of our capital assets. This boost to our cash flow allowed us to create the jobs we needed," he said.

Result

James went on to say "We were able to quickly improve our structure which immediately increased our operating efficiency and productivity".

"We saw a positive increase in turnover at our last year end and in the first six months of this year, are already 10% up on our position at this time last year and I don't think many manufacturers are lucky enough to say that at the moment".

"Close Brothers understood our business, they understood our vision for growth and they were pro‐active in suggesting ways to help us. The results speak for themselves," he added.