A Wolverhampton manufacturer has increased sales and employees with the support of funding from Lloyds TSB Commercial Banking.
Clarkwood Engineering Ltd, founded in 1974, is run by six brothers and six sisters and creates bolts and fittings for specialist customers including the petrochemical, oil, gas and nuclear power industries.
After an increase in demand for the companys services, the management approached the bank to invest in a truck and seven new machines to increase output.
The funding took form in a cashflow finance facility from Lloyds TSB Commercial Banking and a six figure asset finance facility from Lloyds TSB Commercial Finance. This allowed the business to purchase the new assets without impacting on working capital.
To help cope with the increased production of units, staff numbers have risen to 63 with two new employees joining the firm this month. The family now plan to refurbish a unit to expand operations further which will increase product production.
Christine Watkinson, company secretary of Clarkwood Engineering, said: We have seen a large rise in the demand for our products as clients look for a more bespoke manufacturing service. It is great to see that our family business of 39 years is thriving and continuing to grow. The new machinery has increased profits and therefore means we can hire new people.
The bank has been very supportive and having a relationship manager who is specially trained in the manufacturing sector has been a real boost. The integrated funding has been fundamental in the expansion of the business. It means that we have a consistently reliable cashflow which we can use to re-invest back into the business.
David Spear, Lloyds TSB Commercial Banking relationship manager, said: To see a manufacturing business thrive in the UK is a testament to the familys care, attention to detail and business strength. Clarkwood has seen increased sales year-on-year and have both new and repeat customers that come back because of the craftsmanship and service.
As a bank, we have lent £700 million to manufacturers in the last six months, and we have also trained 100 relationship managers so they understand the demands and needs of the manufacturing sector. It is great to see Clarkwood use this option and I wish the family and the business good luck for the future.
Adrian Philp, Lloyds TSB Commercial Finance client manager, said: We have products that suit all sizes of firms as they grow, from start-ups to large established companies. We work hard to provide integrated products to help businesses achieve their ambitions and I am sure that Clarkwood Engineering will continue its success.
MAY 2013
Issued on behalf of Lloyds TSB Commercial Banking by Citypress.