A Southampton-based manufacturer is on track to dramatically increase its sales and expand into new global markets after securing a funding package from Lloyds TSB Commercial Finance.
Established in 2003, Fianium manufactures and distributes high power laser systems, for use within industrial and scientific applications, including eye surgery and the production of micro-electronics devices, used within mobile phones and MP3 players.
The firm employs 30 people, with headquarters in Hamble and sales offices in the US, Japan and China.
It is being supported by its lending partner of five years, Lloyds TSB Commercial, which is providing day-to-day banking facilities.
Although global demand for consumer electronics is decreasing, by offering a range of niche products, the company has seen more enquiries about its unique lasers.
In order to ensure that this does not negatively impact the company’s cash flow, the bank introduced it to its specialist asset based lending (ABL) division, Lloyds TSB Commercial Finance.
Commercial Finance devised a tailored package of facilities, which released the value of the firms’ sales ledger to boost the company’s working capital and enable it to service this growing demand.
The funding package will enable Fianium to expand into Europe, increase turnover to over £7.5 million and employ 10 new staff over the next year.
Anatoly Grudinin, managing director of Fianium, said: “Our business experiences high growth periods due to our niche products.
“Lately, more people have been enquiring about our products due to their cost effectiveness, advanced performance and reliability, and this has helped put us in a strong position, despite the wider economic picture.
“This demand means that we need to maintain a healthy cash flow and so Lloyds TSB’s backing has been crucial to our growth. Lloyds TSB fully understands our industry and long term goals, and this has enabled us to get the funding we need to help us expand in Europe and break into new international markets.”
Jeanette Ide, client manager at Lloyds TSB Commercial Finance, said: “Due to the weakness of the pound against other currencies, companies such as Fianium are taking advantage of the opportunities created by exporting goods.
“This means, however, that payment terms are often longer, to account for time taken to ship goods abroad, which can cause difficulties for a business’ cash flow.
“As a result, more firms are turning to ABL to ensure they have sufficient working capital to make the most of the opportunities, by quickly releasing the value tied up in outstanding invoices on their sales ledger.”
Steve Fahy, relationship manager at Lloyds TSB Commercial, added: “The current market conditions are affecting many firms, but Anatoly’s scientific expertise and detailed planning means the company is in a strong position to take the next step in its expansion strategy.
“We worked closely with the management at Fianium and introduced Commercial Finance to develop a tailored solution.”
Fianium has recently been awarded a coveted 2009 Queen’s Award for Enterprise: International Trade for its outstanding growth and export achievements. The award is widely regarded as the highest honour that can be bestowed upon a British company and is the UK’s top award for business performance.
May 2009