Flint Bishop

£650,000 bank investment for manufacturer

Pictured: (l-r) Neil Lloyd, from Lombard, Glenn Williamson, of RBS, Phil Ewing, director at HB&O, Adam Smith, from RBS, and Peter Everitt, managing director of PowerKut

A Midlands design and manufacture company has secured over £650,000 in funding after landing major new contracts.

PowerKut, based in Bayton Road, Coventry, successfully negotiated the major investment with RBS thanks to the assistance of Leamington and Coventry-based financial experts Harrison Beale and Owen (HB&O).

The funding will be provided in several instalments as targets are met after the firm secured contracts in excess of £400,000 to design and manufacture specialist magnesium alloy parts for the aerospace and defence sector - including parts used in nuclear submarines and military jet programmes.

Peter Everitt, managing director of PowerKut, said: "Securing this investment is extremely important for us as it allows us to take on additional work rather than having to pick and choose which clients we can do work for.

"Harrison Beale and Owen has been our business advisor for almost ten years and they were pivotal in securing this investment - without them we wouldn't be where we are.

"We approached several banks but RBS were the ones who really had their ears open and were prepared to listen to what we were trying to do here.

"To be able to secure this type of funding in the current economic climate is a huge boost and is a credit to RBS who were willing to listen and HB&O who acted as a conduit and brought everything together."

The first chunk of funding heralded the arrival of a group of new machines which will eventually see the factory increase efficiency by making time-savings of up to 80 per cent.

Phil Ewing, director at HB&O, said: "We were delighted to play a role in helping PowerKut to secure this investment from RBS.

"It was wonderful to work with a company which has such exciting plans and with a bank which was willing to consider lending to a company in the manufacturing industry - something which can be hard to come by.

"This is the beginning of an exciting journey for PowerKut, and to be able to assist a manufacturing company expand despite the uncertainty surrounding economy is extremely positive."

PowerKut was established in 2002 and also designs and manufactures products for the mining, rail, construction, automotive, marine, plastics and general engineering sectors. The company has also been supported and funded by the Manufacturing Advisory Service West Midlands as part of the SC21 program.

Adam Smith, senior relationship manager at RBS, said: "The new contracts provide a strong path of growth for the company.

"Whenever contracts are won there is always the operational need to fund the production before payment is received.

"Our funding has been designed to be flexible to these contracts allowing Peter and his team to deliver in a cost effective and profitable manner."

For further information about HB&O, please visit their website here: www.hboltd.co.uk

 

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Article published by Midlands Business News on 14 November, 2011

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