Newland Engineering is a specialist manufacturer of conveyors for loading vehicles. In 2017, the business successfully fulfilled a major export contract with an international buyer thanks to support from UK Export Finance (UKEF).
Based in Manchester, Newland Engineering is a specialist manufacturer of conveyors for loading vehicles. With customers in more than 90 countries, and over half of its business coming from abroad, selling overseas is vital to growing its business.
In 2017, Newland won an export contract with a buyer in Switzerland. It was for 14 conveyor machines to be delivered and installed in a plant in Bangladesh – and with a value of £390,000, it was an important opportunity for Newland, whose annual turnover is £2m.
Newland’s conveyors are custom-designed and built to suit the needs of each customer; and each order requires a different production process.
Newland usually requests a partial advance payment in order to cover the costs of this, but found that overseas buyers can be wary of providing money upfront.
Without prepayment, the cost of procurement would put real pressure on Newland’s cash flow.
Complicating matters further, the export contract included a penalty clause that required delivery to a tight deadline – meaning the company had little time to find alternative funds – and as it had only recently moved banks, Newland didn’t yet have an overdraft facility set up.
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Newland got in touch with UK Export Finance (UKEF). Under its Export Working Capital and Bond Support Schemes, UKEF provided 80% guarantees on both a working capital loan and a performance bond.
This meant Newland could access the cash it needed to fulfil the contract successfully and on time.
“As a manufacturer, we are exposed to peaks and troughs in our business – so securing big orders like this is very important. We’re really grateful to UKEF because without its offer of support, we may not have been able to secure the cash we needed to buy the parts and deliver within deadline,” explained Lynn Kerfoot, managing director of Newland Engineering.
Thanks to UKEF’s support, Newland secured a significant stream of revenue as well as supporting jobs back here in the UK, as all of Newland’s business and manufacturing operations, for both domestic and overseas sales, are carried out at its Manchester HQ.