Loan helps Oldham construction firm maintain growth track
Oldham-based construction specialists Marshall Errock has received a £250,000 NPIF loan which will strengthen its working capital.
The loan is backed by CBILS from NPIF-FW Capital Debt Finance, managed by FW Capital and part of the Northern Powerhouse Investment Fund (NPIF).
Set up in 1983 by managing director Paul Errock, the company provides sub-contracted bricklayers to development sites for main contractors, including Balfour Beatty, Tolent, Morgan Sindall and Bowmer + Kirkland.
The company, which reached a £2.6m turnover last year, employs 16 permanent staff and regularly uses up to 60 sub-contracted workers on development projects across the UK.
Despite being a profitable business, private sector funding facilities were tightened as a reaction to the current pandemic leaving the company with reduced working capital availability.
Managing director Paul Errock said: “For Marshall Errock to quote for large contracts, in the current economic climate, we need to ensure that working capital is sufficient to cover the cost.
“FW Capital were able to plug that gap for us by providing an NPIF loan backed by CBILS and this has meant we are continuing to trade strongly, despite the ongoing COVID crisis.
“The outlook for the company remains really strong. Our projected turnover for the next financial year is £3m, of which £2.4m has already been secured. Our company profits are continually invested back into the business to fund further development and growth.”
FW Capital investment executive Loz O’Connor said: “Marshall Errock is a long-established profitable company, well respected in the sector and has a really strong outlook.
“This was a great opportunity for NPIF and FW Capital to help a business during difficult trading conditions and we are really pleased that our loan support has enabled the management team to quote for new contracts with renewed confidence.”
Sue Barnard, at British Business Bank, said: “This investment into Marshall Errock exemplifies the work that NPIF set out to do since its launch in 2017.
“By supporting businesses with the funds to grow, secure major contracts and create employment opportunities, we are creating a more sustainable and prosperous regional economy for the future.
“As the region now looks towards a recovery from the impact of the pandemic, ensuring vital investment is available to regional organisations is more important than ever.”
FW Capital provides loans of £100,000 to £750,000 to businesses based in the NPIF region with a focus on the North West, Cumbria and Tees Valley.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.