ADS Laser Cutting, a family-run Leicestershire laser cutting and fabrication business has secured a £850,000 finance package with HSBC Commercial Bank.
The package includes a grant from the Government’s Regional Growth Fund (RGF), to purchase the latest Trumpf laser cutter and finance to support the business’ cash flow.
The new cutter will allow ADS to manufacture components for electronic, automotive, and aerospace sectors. It can cut to a greater depth across a wider range of materials than the business’ previous machine and will help the company fulfil bigger contracts.
ADS Laser Cutting will be recruiting two new employees as a direct result of the investment, whilst the new machine has safeguarded a further four jobs.
ADS was founded by brothers Duncan and Stephen Keates in 2005. The brothers were the only two employees in the first year but turned over £150,000. The company now employs 27 people and turned over £2m last year, a 25% increase on the year before.
Managing Director Duncan Keates said: “We are an ambitious company and we want to grow. This investment moves our business onto the next level and will enable us to speak to a far greater range of potential clients than we can currently.”
The invoice financing is crucial to meet the company’s target of doubling turnover by 2018. “Growth means upfront payment prior to being paid by our customers. We require careful cash flow management, which invoice finance helps provide.”
The RGF is a £2.4 billion Government scheme operating across England from 2011 to 2015. It supports projects and programmes that lever private sector investment to create economic growth and sustainable employment. HSBC has agreed to facilitate up to £25 million of the fund to support small and medium-sized businesses that are purchasing assets such as machinery and vehicles in order to grow.
Follow Harry Dalton on Twitter