Broder Metals Group Ltd
Business Loans Case Study
Sheffield-based metals stockiest and distributor firm, Broder Metals Group Ltd, was established in 2006.
At that time they sought initial help from Finance Yorkshire’s predecessor, South Yorkshire Investment Fund, to assist with systems, stock and the associated cost of business development.
Mike Andrews, Director of Broader Metals Group, said: “This initial investment has helped to increase our turnover from £2.3m in 2006 to £7m in 2011 and the number of employees from from eight to 21 staff members.”
The business continued to grow and now encompasses four companies which all focus on the same market but specialise in a different area of metal supply.
In order to continue their expansion programme they needed larger premises and after finding suitable premises in Ecclesfield which were more than twice the size of their previous site in Attercliffe they approached Finance Yorkshire for a business loan.
Mike, continued: “We needed new equipment like racking, CCTV, fire alarms and installation of a computer network which were costs traditional sources of finance were unable to fund and so we approached Finance Yorkshire for help with the capital costs.
“We have always found Finance Yorkshire great to deal with and our Portfolio Manager, David Ward, was always on hand to give assistance whenever we needed him.
Broder Metals Group received a £70,000 Business Loan from Finance Yorkshire which helped to assist the move from Attercliffe to the new Ecclesfield location on Starnhill Close.
The Company has increased its warehouse size, bought new equipment and stock and increased its speed and capacity to quote with a new internal system - meaning it will continue its growth of 40 per cent year on year.
The extra space has also allowed Broder to purchase a new Combilift side loader which speeds up warehouse loading and unloading, gives additional room for future expansion and added training and meeting rooms.
The Investment Rationale
David Ward, Finance Yorkshire Portfolio Manager, said: “We knew from working with Broder Metals previously that our investment had been wisely utilised and had increased profit and employment.
“We were happy to help continue their growth by helping the group move to larger premises so they can capitalize on opportunities and potentially increase employment by a further four roles.”
Mike added: "We work hard to provide our customers at home and abroad with a fast and efficient service and look to develop niche products and long term partnerships with a worldwide customer base.
“Last year exports accounted for 50 per cent of turnover and we now have customers in 26 countries.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire