Machining technology firm secures £15m

Coventry-based NCMT, a distributor of computer-controlled machinery for metal cutting and grinding applications, has secured £15m to support its employee benefit trust plans.

Founded in 1964, NCMT is the exclusive UK agent for leading Japanese machine technology firms Makino and Okuma, and the company also holds exclusive distribution rights across Europe for the Makino VIPER range of high-performance grinding machines.

NCMT mainly supplies to manufacturers operating in the high-tech end of the aerospace sector and its clients include Rolls-Royce and General Electric.

NCMT’s recent trading performance has been buoyed by sustained demand in the aerospace sector, a successful entry into the medical sector, and strong growth in overseas markets.

In FY19, NCMT achieved revenue of £49m and EBITDA of £5m, which led to the company being listed in the Sunday Times Profit Track 100 for 2019.

Dave Burley, managing director of NCMT, said: “Following a competitive process to select our banking partner, we are pleased that Santander is supporting NCMT with this transaction and we look forward to establishing a close relationship going forward to help realise our growth ambitions.”

Emily Davis, structured finance associate director, Santander Corporate & Commercial, said: “NCMT has delivered an impressive growth record, is internationally focused and backed by an excellent management team. We are very pleased to have provided a flexible financing package to support the EBT share purchase and are delighted to be have been chosen as its banking partner at this exciting time in the company’s strategic development.”

Josh Thorneycroft, deal advisory senior manager at Mazars, said: “It has been a pleasure to work for such an entrepreneurial and employee-focussed business as NCMT, that has experienced strong growth in an exciting sector. In a highly competitive process, Santander were able to demonstrate their ability to offer a flexible package that worked for the dynamics of the business, and I have no doubt that they and NCMT will enjoy a close relationship going forward.”