An Essex-based wholesaler of roof tiles is aiming for a 65 per cent increase in turnover next year after securing an asset based lending (ABL) facility from Lloyds TSB Commercial Finance.
Established in 2004, Ashbury Roof Tiles exclusively imports handmade clay roof tiles from Turkey to roofing merchants and distributors in the UK.
Operating from premises in Halstead and Tilbury, the company started out as the UK agent of a larger importer but began to directly import the products in March 2009 when the importer filed for administration.
Becoming a direct importer meant the company needed to strengthen its working capital to bridge the gap between purchasing imported tiles and the receipt of payments from its UK customers.
Management approached Lloyds TSB Commercial Finance, which provided a £400,000 invoice discounting facility that enabled the firm to unlock the cash tied up in its sales ledger.
Now the company is set to take turnover to £2.5 million in 2010, up from £1.5 million in 2009, and is seeking to add to its five-strong team.
Management is also focusing on developing other divisions of the business, which includes products such as handmade clay bricks, bespoke oak joinery and machine made clay roof tiles.
David Osborn, managing director of Ashbury Roof Tiles, said: “When the previous importer collapsed we knew we had the experience, expertise and customer base to successfully execute a profitable business model, but we needed funding that would boost our cash flow and enable us to cover the cost of the Turkish shipments.
“It’s been a challenging year, but with the support of Lloyds TSB Commercial Finance we’ve put ourselves in a good position to achieve strong growth over the next 12 months.
“Although the wider economic outlook is still uncertain, we’re beginning to see growing confidence and we will be ready to capitalise on new opportunities as and when they arise.”
Geoff Webster, regional manager for Lloyds TSB Commercial Finance, said: “Ashbury Roof Tiles was left with an uncertain future when its supplier became insolvent earlier this year. However, David immediately spotted an opportunity to create growth and, with a flexible and hardworking team on board, the company reacted quickly to turn the situation around.
“ABL is ideally suited to the firm’s needs, as it advances the value of its sales ledger to quickly inject cash into the business when needed, enabling management to seize growth opportunities and focus on strategy.
“The company can now focus on growing its market share and diversifying its interests by developing the other arms of the business.”
December 2009