Funding sparks recovery for Black Country electrical engineer
A BLACK Country electrical contractor is planning for growth after securing new funding from the area’s loan fund.
AGW Electrical (Services) Ltd, based in Smethwick, provides electrical inspection, installation and maintenance to a variety of UK commercial and industrial clients including Greggs, Subway, Hadley Industries and the University of Birmingham.
The company, founded 11 years ago, has borrowed £25,000 from the Black Country Reinvestment Society (BCRS) through the Sandwell Business Loan Fund to help aid its cash flow during the recession.
The £750,000 fund offers loans of between £10k and £50k and is available until 2012 to Sandwell-based businesses that are experiencing difficulty accessing finance. The fund is managed by BCRS.
Adrian Watton, co-founder and director of the firm, said business had been slow between March 2009 and June 2010 but rather than fold, he decided to be proactive and took on a marketing manager in order to generate new business. The firm also opted to rebrand itself.
“The recession had drained our cash reserves. We negotiated with our wholesalers to give us longer payment terms, but it’s paying for skilled labour that’s the problem – you need money in the bank to pay salaries,” he said.
“We employ 10 people, and have sub-contractors as direct labour when we need them. BCRS turned the loan around very quickly, which enabled us to keep going.”
Steve Grice, business development manager at BCRS, said: “Cashflow problems are a common theme BCRS are experiencing in the businesses we meet. We are plugging this gap and helping companies continue trading.
“I’m really impressed with the way AGW have responded to the downturn, by cutting costs including their own salaries and taking on a dedicated marketing manager to push sales.”
Mr Watton said sourcing business had been difficult but the key had been to be flexible in order to meet customer requirements.
“Hadley Industries have been very supportive and we have recently installed new sensory lighting in the Elephant House at Twycross Zoo,” he said.
“We were determined not to throw the last 11 years down the drain. Since April 2010 we’ve quoted over £1.25m worth of work, the acceptances are still coming in and we’re still quoting. Our turnover is up and the future is looking very positive. Over the next six months, as the economy grows, our cash flow will get easier.”
