Sertec secures £5m funding package to support expansion plans
AUTOMOTIVE component supplier Sertec has secured a £5m extension of a £19m finance package to support its growth ambitions – which include supporting Jaguar Land Rover’s excursion into China.
The team at Lloyds Bank in Colmore Row in Birmingham has arranged the deal, which includes a £3m increase in trade finance facilities to enable the business to accelerate its growth strategy, particularly in support of its exposure to stamping imports from China.
The deal takes the Coleshill business’ total funding facility with Lloyds Bank to more than £19m.
Sertec, twice winner of TheBusinessDesk.com’s Business Masters’ Manufacturer award, is a global leader in a range of steel and aluminium manipulation and assembly processes, including transfer and progression presswork, tube manipulation, wire forming, deep drawing, welded and self-piercing riveted components.
The business’ specialist presswork and stampings operation has the capability to handle large scale projects, right through from initial design to tool completion.
In recent years, Sertec’s growth has been largely fuelled by a considerable uplift in contracts with JLR, including the provision of stamping tools for the all-new Range Rover, Sport, Evoque, all the Jaguar saloons and its latest offering, the F-Type sports car.
Sertec has an annual turnover in excess of £100m and has been a customer of Lloyds Bank since the business was established in 1962. During this time, Lloyds Bank has consistently increased working capital funding lines to the business, in order to help drive its on-going development and expansion.
Earlier this year, Sertec was ranked ninth in the Sunday Times Profit Track 100 for private companies that have shown the fastest profit growth, based on the previous three years’ accounts.
Martyn Hughes, Group Finance Director at Sertec, said: “Over the last 50 years, we have prided ourselves on expanding Sertec’s capabilities in the provision of world class automotive manufacturing facilities to our global customer base. In recent years, we have experienced particularly buoyant demand for our specialist presswork and stampings operations and this has led to further investment in our business.
“Chris Pennick and the team at Lloyds Bank have a sound understanding of the mechanics of our business, and have responded to our needs by introducing local Trade Director Terry Richardson. He has worked closely with us to develop this trade finance solution, in spite of the widely reported difficulties of raising finance in the current climate.”
Chris Pennick, Relationship Director at Lloyds Bank Commercial Banking in Birmingham added: “Sertec has demonstrated solid organic and new business growth in its fifty year history, and the drive and ambition of the management team is typically representative of mid-market businesses that are helping to fuel the UK’s economic recovery.
“The company’s global reputation and industry credibility as a leading UK automotive manufacturer remains a real catalyst in fuelling the business’ ambitious growth strategy. In order to accelerate this further, it was important for us to facilitate the necessary trade finance funding to provide the business with the upfront financing it needs to remain competitive and increase growth.”
