Toolmaker targets growth after new funding deal

A STAFFORDSHIRE toolmaker has furthered its growth ambitions after purchasing two new pieces of equipment.

Norton Canes-based RLS Tooling secured a £72,000 loan from Lloyds Bank Commercial Banking to enable it to buy a cylindrical grinding machine and blank making machine. The equipment will help improve production output by 10%.

RLS Tooling, established in 1989, manufactures tools used to produce screws and bolts, and supplies to businesses across the UK, with export operations in Europe, China and the United States.
 
The business recognised an increasing demand for its products, from clients both in the UK and overseas, and identified the need to invest in additional machinery in order to increase its production capacity to meet this demand.

Funding was granted using the Funding for Lending Scheme (FLS) through which customers receive competitively priced lending, typically 1% off the interest of a loan during the life of the agreement.
 
Lloyds Bank’s Commercial Finance team has also provided the business with a funding facility to help generate working capital as it works to achieve its long term growth strategy.
 
RLS Tooling employs 18 people and has a turnover of circa £1.5m. Following the purchase of the machinery, it now plans increase its export operations by targeting contracts in new markets, with plans to increase its workforce in the next six months.
 
Roger Smith, director at RLS Tooling, said: “The investment in new machinery has been vital to enable us to meet the increasing demand for our products from the UK and overseas markets, and keep ahead of our competitors.
 
“The team at the Lloyds Bank has played a fundamental role in helping us make this investment and we now look forward to continuing to grow the business and our export operations, whilst also creating additional local jobs.”
 
Christopher Briggs, Relationship Manager at Lloyds Bank Commercial Banking, said: “RLS Tooling is a well-established local manufacturing business and has built up an excellent reputation for the high quality components it produces.
 
“This recent investment in new machinery highlights the business’ ambitious plans for growth, allowing it to produce an increased amount of its products to meet existing demand, as well as providing it with the production capacity to secure contracts in new markets.”
 
Andrew Collett, Client Manager at Lloyds Bank Commercial Finance, added: “The facility provided to RLS Tooling has generated working capital for the business, that doesn’t impact on its day to day operations and the business now has a strong platform for growth as it pursues its expansion plans.”