Subsea technology innovator secures £500k funding for growth
Bibby Financial Services (BFS) has provided a £500,000 export finance facility to Subsea Technologies Limited (STL), an international engineering business specialising in subsea hydraulic and mechanical connectors.
Established in Aberdeen in 2010, STL clients have included Shell, Halliburton and Helix.
The company’s background lies in the design, construction and maintenance of subsea drilling, well intervention and subsea well control systems.
Today, STL has an experienced team of project and design connector engineers delivering a wide variety of services to equipment rental.
The business recently launched a pioneering 3D visualisation service which allows oil and gas firms to review and assess complex products before they are made.
Meanwhile, the company’s market-leading, high-angle release XR connector greatly enhances safety and reduces environmental risks, while saving time and money.
A pioneering product, it allows the vessel’s crew enough time to respond to challenging scenarios without the risk of getting stuck to the wellhead or damaging the connector if the crew do not react fast enough – a risk presented by all other connectors on the market.
The creation of such innovative technologies has resulted in impressive and quick growth for STL. The company now has an agent based in Shanghai, China, and sells its products worldwide.
With an international client base and challenging market conditions, the company sought to partner with a funder that could provide access to working capital and support in overcoming the complexities of trading overseas.
It was at this stage the business turned to Liverpool-based BFS’s corporate team, in Yorkshire, who structured a £500,000 export finance package, which includes bad debt protection, covering 100% of STL’s overseas debt.
Alan Gilbert, finance manager at STL, said: “There are a number of challenges that come with having your clients based overseas, from legal challenges and language barriers to currency fluctuations and overseas payment practices.
“While we were in a strong position, these challenges had the potential to cause some cashflow issues.
“We knew we needed to partner with a funder that had both experience in our sector and experience of international trade.
“As a global business BFS were able to provide flexible funding and also wider support in relation to language capabilities and foreign exchange. With funding in place, we’re looking forward to the next stage of growth at STL.”
David McIntyre, corporate manager-Yorkshire at Bibby Financial Services, said: “STL is an incredibly innovative business, with a robust pipeline of business and a strong customer-base.
“We knew from the start that we could structure a facility to help STL due to our global reach and our expertise in export finance.
“We were delighted to be able to structure a facility that works for the business both now and in the future.”
He added: “With the new funding in place, STL will undoubtedly go from strength-to-strength and we look forward to supporting the company’s future growth.”