A Manchester roofing company is ready to capitalise on an improving economy as it is set to boost both turnover and headcount by nearly 30 per cent this year after securing funding from Lloyds TSB.
Established in 2005, Acorn Bespoke Roofing provides tiling, felting and guttering services for private and public sector clients across the UK
Working closely with Interserve Facilities Services, the company has completed a number of projects commissioned by the Government and recently finished a new contract to deliver two care home projects in Warrington.
It is now starting to work on a 25-year contract to service the new generation of super schools.
Based in Failsworth, the firm is one of only three North West flat roofing specialists to be accredited by the Garland Company, a manufacturer of high performance roofing materials.
Despite the onset of a recession, the firm increased turnover by 40 per cent last year and doubled headcount to 22.
It also invested heavily in high access equipment and a fleet of new vehicles to service the growing list of blue chip customers.
However, this expansion put pressure on cash flow and management approached banking partner Lloyds TSB Commercial for a funding solution.
The bank extended the company’s overdraft facilities to boost working capital and also introduced it to Lloyds TSB Commercial Finance, its asset based lending division.
Commercial Finance provided a £50,000 factoring facility that enabled the company to bridge the gap between completing projects and receiving payments from clients.
Now, with an increased level of working capital, the business is continuing to secure large contracts and is on target to boost turnover by 30 per cent this year.
It aims to hire a further eight full-time employees by 2010 and will continue to support at least one apprentice each year.
The firm has also launched a sister company, Padman Scaffolding Limited. By offering complementary scaffolding services to Acorn Bespoke Roofing’s established customer base, management is expecting the new company to achieve a £1 million turnover within its first five years.
Established last year, the new company is already seeing turnover grow by 33 per cent.
Walter Merriman, managing director of Acorn Bespoke Roofing, said: “We’re currently operating in an extremely tough market, but by focusing on refurbishment work rather than new build, we’ve been able to secure a number of sizeable contracts.
“We’re now diversifying our operations by launching a complementary sister company to capitalise on cross selling opportunities with our well established customer relationships.
“In Lloyds TSB we have a banking partner that understands our ambitions and was able to quickly provide us with a tailored funding solution. This means we can sustain our rapid growth and do not need to turn away new business due to a lack of working capital.
“We’ve also received invaluable support and guidance from our accountants in Prestwich, Millers.”
June Ainscough, relationship manager for Lloyds TSB Commercial, said: “Acorn Bespoke Roofing is a great example of a niche business that has thrived over the last 18 months, despite operating in one of the sectors worst-hit by the recession.
“Walter has continually kept us updated of his contract wins, growing turnover and plans for expansion, something which made it easier for him to secure the funding he needed to fulfil his ambitions.”
“By working closely with the company, we were able to identify the best lending package to support its strategic objectives of boosting turnover, recruiting more employees and launching a second venture.
Clare Boswell, client manager for Lloyds TSB Commercial Finance, said: “Asset based lending is an ideal solution for Acorn Bespoke Roofing, as it gives the company financial flexibility by quickly releasing the value tied up in outstanding invoices.”
February 2010