Cash flow facility allows Portsmouth based Proptech Propellers to expand

A Portsmouth business which repairs small aircraft propellers is set to increase turnover by 45 per cent in the next three years after securing an invoice finance facility from Lloyds TSB Commercial Finance, alongside day-to-day banking facilities from Lloyds TSB Commercial.

Proptech Propellers was established over 40 years ago and supplies customers internationally including regional passenger, freight, military and private airlines. The firm has a 10 per cent worldwide market share and has seen steady growth since inception.

By repairing and overhauling propellers, the company serves a niche market and employs 32 people in its 30,000 sq ft warehouse on Nevil Shute Road.

The business found it needed a cash flow facility as its market share grew and it increasingly began trading with developing economies worldwide, stretching payment terms and in turn, available capital.

To ensure the company could continue this rate of expansion unfettered, the management team approached Lloyds TSB Commercial Finance, which devised a £450,000 invoice finance facility.

Based on a firm’s sales ledger, invoice finance releases the value of invoices as soon as it is issued to the customer, ensuring businesses are not hampered by lengthy payment terms, which are often inevitable when trading internationally.

Proptech Propellers’ management team also took out a debtor insurance product from Lloyds TSB Commercial Finance to protect its sales ledger and provide peace of mind when trading with a wide variety of customers.

To complement this funding package and to ensure Proptech have sufficient capital to run the business day-to-day, Lloyds TSB Commercial also provided banking facilities to support the firm’s growth.

As a result of this cash flow boost, the company is now in a strong position to implement its growth strategy, which sees the business increase turnover by 15 per cent every year for the next three years. 

Andrew Featherstonhaugh, managing director of Proptech Propellers, said: “Since inception, Proptech has prided itself on excellent customer service and unrivalled expertise in small aircraft propellers.

“To ensure we stay at the top of our game it is important we have sufficient cash flow to invest in growth going forward, especially when dealing with overseas customers.

“The funding package provided by Lloyds TSB has been instrumental in cementing our market share and implementing our development strategy over the next three years.”

Jon Graham, regional manager at Lloyds TSB Commercial Finance, said: “Proptech Propellers is a SME with a global outlook and as a result of these aspirations the firm has seen strong growth and has become a worldwide player in the propeller engineering market.

“With sound financial planning and an ambitious, forward-thinking management team, the business remained robust during the recession and it is now in an excellent position to grow.

“Our facilities have ensured the firm has adequate capital to invest in the future, without impeding its cash flow day-to-day.” 

Kevin Robinson, relationship manager, Lloyds TSB Commercial, said “We worked closely with Andrew and the team to ensure we devised a suitable funding package to deliver Proptech’s long and short-term requirements. 

“In this economic climate it is vital SMEs look further afield to ensure strong trading and it is great to see Proptech Propellers capitalising on all possible opportunities available to them.”

December 2010