Business Loans Case Study
Leeds-based Silchrome Plating Limited was established in 1949 and offers a wide range of metal finishes and treatment processes to a variety of industries including engineering, aerospace, defence, oil and gas and electronics.
Silchrome was acquired by Managing Director Austen Thwaite and Steve Hollis in 2008.
Silchrome Managing Director Austen Thwaite said: “We bought the business four years ago just as the recession started. After two very difficult years the business is now profitable and well positioned for growth with turnover back to £1.5m.”
With the growth programme underway, the company approached Finance Yorkshire to help with its continued expansion and were successful in obtaining a loan for £60,000 which will be used to upgrade the present facilities with the opportunity to create further jobs.
Austen said: “Our Investment Manager Grahame Lunt visited me on site to find out about the company and was supportive during the application process which concluded very smoothly.
“We have installed a new powder coating facility as well as lifting machinery to help us move heavier parts around which will enable us to work with bigger components.
“The investment has also been used to support our working capital.”
The Investment Rationale
Finance Yorkshire Investment Manager Grahame Lunt said: “Like many businesses in our region and across the country, Silchrome have felt the effects of the recession.
“But the new team have a clear direction of where the business is heading. The investment will give them additional working capital to install new processing lines and increase production, ensuring they have the facilities, capability and staff numbers to achieve their goals in the next three years.”
Said Austen: “We currently have a workforce of 30 and have a medium plan to boost turnover to around £2.5m which will add around six people to our workforce.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire