Window and glazing systems supplier is on track to increase turnover this year
The business also completed a strategic acquisition in 2009, buying a glass company renamed Senior Glass Systems, to complement Senior Architectural Systems’ offering.
Employing 155 people, Senior Architectural Systems is based across three sites in Newport, Livingston, with its headquarters in Denaby Main, Doncaster. Senior Glass Systems is based in Scarborough.
The number of active building projects has increased in the past six months as the economy has improved, and the company found it required a boosted cashflow to re-build stock levels and bridge the gap between paying suppliers and receiving payments from customers.
The £6 million funding package from Lloyds TSB Commercial Finance has enabled the business to develop new window systems for customers and it is now on track to increase its turnover by 15 per cent to £31 million over the next 12 months.
Lennart Jonsson, managing director at Senior Glass Systems and Senior Architectural Systems, said: “Our products and systems are constantly evolving to fit in with customer’s requirements and the wider sustainability agenda".
“Therefore, to maintain our market-leading position, it’s become increasingly important to ensure we have flexible liquidity which can adapt to the changing conditions".
“The working capital facility from Lloyds TSB Commercial Finance has boosted our cash flow and increased our purchasing power, giving us greater influence in the market".
Steven McGawn, director of business development at Lloyds TSB Commercial Finance, said: “The construction industry was one of the worst affected during the recession. Despite this, by concentrating on excellent customer service and a strategic acquisition, Senior Architectural Systems is in a strong position to capitalise on the increased number of new builds and refurbishments.
“Our working capital facility will enable the business to bridge the gap between stock expenditure, paying suppliers and receiving payment from customers. This is essential for any growing company, as it means its own bills can be paid on time and it has sufficient liquidity to invest in the future.
“Senior Architectural Systems is a forward-thinking firm that is in a strong position to capitalise on the improving construction sector having implemented our funding package.”
The initial introductions were made by Tom Rumboll, Business Development Director at Lloyds Bank Corporate Markets in Sheffield and the deal demonstrates how different areas of Lloyds Banking Group work closely together to provide the right support to a client.
Tom Rumboll explained: “Senior Architectural Systems is a company I got to know a few years ago and we have stayed in touch. They have a very strong management team who have successfully led the company through the tough economic environment of the last few years and post-recession are in better shape than ever.
“We’re pleased to be able to support Senior Architectural Systems as they enter a period of expansion and growth. We worked closely with our colleagues in LTSB Commercial Finance to provide the support just when they needed it. I am sure that the company has a very bright future and we are delighted to be part of it.”
Sheffield-based law firm Nabarro advised Lloyds TSB Commercial Finance on the transaction.
Dean Gormley, head of banking and finance at Nabarro in Sheffield, said: "We are delighted to have been able to assist Lloyds TSB Commercial Finance in putting in place a funding package which will support the continued growth and development of this important local business."
September 2011