Rising from the ashes – AS Fabrications’ successful reinvention

NEWLY launched AS Fabrications is celebrating a strong start with the firm’s order book already full following just a few months of trading.

The Liversedge firm, which supplies metal fabrications such as stainless steel and glass balustrades, staircases and balconies to household names in the fencing, construction and fabrication industries, launched earlier this year after securing funding from HSBC and Yorkshire Forward.

But while the future looks bright the firm had to overcome significant obstacles on its journey to success.

AS Fabrications emerged out of the collapse of business consortium Glentworth Holdings.

The consortium started to experience serious cash flow problems despite having worked on high profile projects such as Twickenham’s new South Stand and went into administration in May.

No buyer for the companies within the consortium was found forcing them to cease trading.

For the directors and staff at Glentworth Architectural Metalwork – part of the Glentworth Holdings group – this represented 39 job loses in Liversedge and a further 30 more in Wokingham.

Mick Fortune, the firm’s managing director, consulted with colleagues, clients and customers and the decision was taken to create AS Fabrications.

A leaner team, no longer hampered by the hefty costs that go with the territory of being part of a large group, enabled a speedy transition back into the market.

Mr Fortune, who is now managing director of As Fabrications, said: “Losing a company when you fundamentally believe that it is a viable business is tough, especially when the result is the loss of so many jobs.

“You have to look at the situation. Your customers want you to carry on and so do your suppliers. Re-launching has been very daunting but we have had a cracking few months with plenty of enquiries so the whole team is extremely pleased.”

AS Fabrications, which operates from the original site, has now re-hired half the original workforce to help produce the same range of stainless steel and glass balustrades, staircases and balconies.

The launch was helped by existing premises landlord Don Middleton and Son, which offered to buy the production machinery and allow the business to buy back over two years.

Coupled with three months free rent the cashflow burden on the newly-formed AS Fabrications was lessened significantly.

Mr Fortune continued: “We are going to build the business back up gradually using the profits of the business to do so. Previously, we had some great relationships with suppliers and clients whom have been a tremendous help in the launching of the new company.”

He also praised HSBC’s help in getting the business venture off the ground.

“Banking with HSBC has had a huge influence on the success of AS Fabrications because they understand the wider picture rather than just focusing on the numbers,” he said.

“The bank has factored in the robust business plan presented as well as the strong management team we’ve put in place, resulting in good financial and business support from people who understand us, as well as our business. People work with people, not companies.”

Mark Vines, HSBC’s regional commercial director for Yorkshire, the North East and North Lincolnshire, added: “The management team of AS Fabrications has done a fabulous job of resurrecting a viable and potentially very strong business.

“They have got a great plan in place and we are in full support of the new company which has already received some significant product orders. We shall continue to work closely with the management team to help the business grow as the economy begins to recover.”