Cable firm's sales hit pounds 7m in first year.
ACABLE supply company has seen sales of pounds 7m in its first year of trading and expects to double turnover next year. Hartlepool firm Expert Cables supplies electrical cables to UK electrical wholesalers and was established in 2010. Within months, demand soared and after four months, it expanded into a 23,000sq ft warehouse.
The company, which employs seven people, has also achieved preferred supplier status for a number of electrical buying groups, an accolade which is more often bestowed on long-established businesses.
These new routes to market meant Expert Cables had to support large orders for businesses such as City Electrical Factors, the UK's leading electrical wholesale network, which supplies 400 branches around the UK. In order to cater for these customers, the business required a funding facility to boost day-to-day cashflow and bridge the gap between shipping orders and receiving payment, while leaving money aside to invest in future growth.
To fund its growth, the firm, which expects to see turnover rise to pounds 15m next year, has secured a pounds 4m factoring facility from Lloyds TSB Commercial Finance.
The boost to its cash-flow means it can capitalise on demand. The funding is based on issued invoices and grows in line with sales.
The business is now planning on expanding its product range to include solar panel cables and fire-proof wiring which are popular for use in schools and hospitals.
Expert Cables also secured a debtor insurance facility from Lloyds TSB Commercial Finance to safeguard its issued invoices, allowing it to trade confidently. Andrew McKenna, managing director of Expert Cables, said: "We started the business with a strong base of sector expertise, which, coupled with our focus on customer service, has meant we have secured preferred supplier status for a number of well-respected electrical wholesalers. "Due to this sustained level of demand, which is rising rapidly, we needed a funding facility to provide financial headroom to enable us to service day-to-day orders and also finance our expansion ambitions. "We will be having an SWA rewind and cutting machine installed which cost pounds 60,000. This will enable us to sell SWA cables at any length required by our customer.
Terry Brown, regional manager for Lloyds TSB Commercial Finance, said: "Factoring is ideal for a start-up business like Expert Cables, which has experienced high levels of demand early on. As the product is directly linked to a firm's debtor book, the larger the asset pool, the more funding a business has access to.
"With a relatively small staff base, Expert Cables can also benefit from the factoring facility's in-built credit control function, which chases issued invoices on behalf of the customer. "Andrew and the team's success is testament to their hard work and drive to succeed. By utilising a dynamic finance package, the business is on the path to future growth."
AMBITIOUS PLANS Andrew McKenna, left, and Terry Brown
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|Publication:||The Journal (Newcastle, England)|
|Article Type:||Company overview|
|Date:||Nov 21, 2011|
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