A St Austell-based sawmill is set to double turnover this year following the launch of a new range of biomass fuel products, funded by a £130,000 Enterprise Finance Guarantee loan and an asset based lending (ABL) package from Lloyds TSB.
Established in 1996, Rawnsley Woodland Products has a two-acre site near St Austell where it produces home grown Western Red Cedar cladding and shingles using sustainable methods.
The company has supplied cladding for Jubilee Wharf in Penryn, one of the country’s leading eco developments, as well as items for Jamie Oliver’s restaurant Fifteen Cornwall.
It is also providing the cladding for the redevelopment of St Austell town centre and the Pool Innovation Centre, working in partnership with Sir Robert McAlpine.
Management spotted an opportunity to diversify into the biomass fuel market by converting the firm’s waste sawdust into wood pellets and briquettes, turning the business into the first wood pellet production plant in the county.
It is now on course to double turnover in the next 12 months to £400,000 and is targeting a further 50 per cent growth the following year, serving local customers such as Cornwall County Council, which has invested in a pellet boiler for County Hall, Truro
The move, which forms part of the company’s commitment to sustainability, has enabled it to reduce its waste to virtually nil, whilst also maintaining its low carbon production methods.
Funding for the expansion was secured from the firm’s business banking partner Lloyds TSB Commercial through the Enterprise Finance Guarantee (EFG) scheme.
Under the £1.3 billion initiative, the Government guarantees lending to viable businesses, to ensure they can access the working capital and investment they need and supports bank lending, of three months to 10 year maturity, to UK businesses with a turnover of up to £25 million.
The bank also previously introduced the firm to its asset based lending (ABL) division, Lloyds TSB Commercial Finance, which funded new briquette and pellet making equipment as well as providing working capital.
Tino Rawnsley, managing director of Rawnsley Woodland Products, said: “Although market conditions are currently tough for many small businesses, it was essential to capitalise on the opportunity for development whilst also reducing our waste and carbon impact.
“Lloyds TSB understood our ambitions and quickly provided a tailored funding package that enabled us to put our expansion plan into place.”
Patrick Jenkins, relationship manager for Lloyds TSB Commercial, said: “Rawnsley Woodland Products is a great example of a niche firm that has been able to expand during the downturn by spotting an opportunity to diversity its product range, whilst also staying true to its eco-friendly ethos.
“Lloyds TSB has made clear its commitment to make funding accessible to small businesses such as Rawnsley Woodland Products and we provide one in four EFG loans. We were one of the first banks to use the EFG and we are one of the most active banks in helping small firms get access to the scheme.”
Richard Stevenson, senior relationship manager for Lloyds TSB Commercial Finance, said: “Rawnsley Woodland Products is a champion of sustainability and environmental values, serving the local market with home-grown, quality products.
“The business has used ABL to release the value of its assets in order to maintain healthy cash flow levels as it expands.”
For more information about Rawnsley Woodland Products’ biomass fuel supplies visit: www.cornishwoodfuels.co.uk.
September 2009