Precision engineering firm drills up funding package to fuel future growth
A Barnsley business which manufactures and exports Electro Chemical Machine tools across the globe has secured a £30,000 investment to fuel future growth after securing two new international orders.
Mapplewell-based pECM Systems has secured the funding from Finance For Enterprise. The firm uses electrolysis to remove materials from a product without physically touching it. The technology is typically used in the medical and aerospace industries and since the company was launched in 2011, it has successfully secured orders from around the world including Italy, Russia, Asia and the USA.
Last year the company secured two new orders with companies in Thailand and Italy, worth in excess of £300,000. However, when the Thai company was unable to pay the large deposit typically required, pECM was forced to offer alternative terms or face the prospect of losing the sizeable order.
Company founder Steve Duffield recognised that negotiating alternative terms would place a considerable burden on the company’s cash flow and Finance For Enterprise stepped in to help.
The loan has enabled the business to continue working on a number of other sales whilst the contract in Thailand was fulfilled, safeguarding jobs as well as further developing its international order book.
Duffield, Founder, pECM Systems said: “The machinery we manufacture is always tailored to meet the specific needs of our customers. We support a wide range of industries across the globe, with some of our products such as titanium machining systems costing as much as £1 million.
“The cost of each machine determines the deposit amount we require from customers and as most contracts tend to be £200,000 or more, it often proves impossible for them to provide the deposit amount we need to manufacture the machine. We knew we would struggle with cash-flow after releasing the machine in the Thailand contract and it potentially meant placing other new business activities on hold. However, the support we have received from Finance For Enterprise has helped to provide us with a short-term cash boost at a critical point in our business. The funding process was simple, straightforward, but crucially it has helped us to overcome the potential financial obstacles we were facing.”
Dave Potts, Investment Manager, Finance For Enterprise, added:“pECM Systems are responsible for providing a bespoke service and manufacturing products and tools which are still relatively unheard of and utilised. However in certain industries which they supply to, such as medical, their products are a necessity for ensuring premium patient care and the business Steve has created and developed is now at the forefront of the Electro Chemical Machine industry.
“Securing additional funds to navigate the business through an uncertain time was crucial for Steve and thankfully I contacted him at the right time to provide support and assistance to ensure his business wouldn’t face further cash-flow issues whilst completing a prestigious contract.”
pECM Systems was launched by Steve Duffield in 2011 after spotting a niche in the precision engineering sector. The company is the only UK manufacturer of electro-chemical machining systems and is responsible for providing precision components and engineering systems to the international aerospace and medical sectors.
