Cambridge-based Superior Finish (Contracts) Ltd said turnover topped £1 million in 2009 after it won a three-year contract to install flooring to sites owned by the Ministry of Defence.
The contract flooring division of Superior Finish, which supplies restaurants, offices, shops and schools, has increased staff numbers to 10 from three. The company also invested in new delivery vehicles and more stock to meet increased demand from customers.
Superior Finish was originally set up in 1988 to sell furniture and carpets to consumers from its 10,000 sq ft. showroom. Two decades later, father and son John and David Bufton, joined the company to add contract flooring to its services. Just as the new division was being set up, one of its main competitors collapsed, which enabled Superior Finish to win some of its clients and ensure that their contracts were fulfilled.
Along with the MOD contract, the company has become the main contractor to the University of Cambridge.
To fund its rapid growth, Superior Finish approached Lloyds TSB Commercial Finance, which provided an invoice discounting facility that enabled the firm to unlock the cash tied up in its sales ledger.
David Bufton, a director of Superior Finish, said: “When one of our competitors collapsed we knew we had the expertise to take advantage of the opportunity. But we had just taken on a big contract with the MOD and needed funding that would boost our cash flow and enable us to cover the cost of expanding the workforce and increasing our stock.
“With the support of Lloyds TSB Commercial Finance we’ve put ourselves in a strong position to continue growing over the next 12 months.”
Tracy Edwards, regional manager for Lloyds TSB Commercial Finance, said: “Superior Finish has grown rapidly in its first year, securing some big contracts with prominent organisations. The challenge for young companies is finding the best way to fund this growth.
“Invoice discounting is ideally suited to this, as it advances the value of its sales ledger to quickly inject cash into the business, enabling management to seize growth opportunities and focus on delivering a great service to their clients.”
January 2010