Summary
A family run engineering firm operating in the Oil & Gas sector had recently had a dip in performance due to the sector challenges and was placed in a banks restructuring department. They were well respected and traded for over 12 years. Bank was trying to be supportive but was limited in what it could help with. They were close to the limit of support for working capital.
Challenges Faced
The company won a ‘game changing’ contract – Valued at £5m with company turnover currently at £4.5m, this would change the fortunes of the business but had no way to fund the contract to a blue chip export buyer with a strong track record.
Our Solution – Technical Expertise
We delivered a workable solution that the bank could provide which was secured in large by a g/tee to the bank from the government under the UKEF Working Capital Scheme which secured 80% of the facility. The bank had comfort from the g/tee as security and we obtained a Letter of Credit from the buyer to mitigate payment risk.
The Value Created
The contract was completed below budget, in time and repaid as agreed. The company moved back into mainstream bank and is now supported through its growth needs and now Turnover close to £10m per anum as a result of the contract undertaken. This has opened up more growth and export opportunities. Facility provided £3.5m.
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