Manufacturer secures funding to help meet demand

Grimsby-based manufacturer has said it is looking to create eight new jobs and target multi-million-pound growth after securing a loan from alternative lending provider Finance For Enterprise and the Northern Powerhouse Investment Fund (NPIF).

Smartflow Couplings which specialises in manufacturing innovative hose couplings that are used in transporting hazardous liquids secured the funding after receiving support from Innovate UK to bring a number of new products to market.

After successfully developing ideas for its product range, the company spent much of the Covid-19 pandemic undertaking extensive testing with the National Engineering Laboratory and National Physics Laboratory, enabling 20 new types of coupling systems to be brought to market.

Following the launch of these products last year the company found that demand was outstripping supply, however following the new funding the business has been able to successfully reduce lead times and meet the growing demand for its new range of products. As a direct result of the financial support provided by Finance For Enterprise and NPIF, the company is aiming to treble its workforce, as well as target an eight-fold increase in turnover within the next two years.

Gary Thompson, managing director of Smartflow Couplings, said: “Smartflow Couplings has performed well over the past five years and until now, we’ve been entirely self-funded. However, we recognised that to reduce lead times and increase production capacity, additional investment would be needed to help us reach the next stage of our growth journey. When we secured a grant from Innovate UK to help us increase the number of products in our range, we saw this as a catalyst to drive growth within the business.

“When we launched the product range at the end of 2021, I knew this would be transformative for the business, but there were also challenges we needed to overcome. For example, purchasing additional raw materials and recruiting staff to reduce lead times. I spoke to Jeremy and he talked through the different funding options available to us. He made the application process very straightforward, and kept me updated throughout the process. The funds Finance For Enterprise helped us to secure has enabled us to purchase the essential raw materials to produce our new valve range, and we’re also hoping to recruit new members of staff as the business grows. The result of the investment has also meant that we’re able to increase capacity in the business, helping our customers to benefit from lower lead times.”

Jeremy Meadowcroft, investment manager at Finance For Enterprise, said: “The Recovery Loan Scheme was created to help businesses prepare for future growth after being impacted by the Covid-19 pandemic. Having invested significant amounts of money in research and development to bring new products to market, Smartflow Coupling’s plans were impacted by the Covid-19 pandemic, due to the impact of sourcing raw materials.

“The support we were able to provide through the Northern Powerhouse Investment Fund and the Recovery Loan Scheme is likely to see the business enjoy significant future growth. Since launching the new product range the company has seen a significant rise in orders from across the world and with plans to treble its workforce, within the next two years, the innovative work Gary and his team are undertaking is having an immediate positive impact upon the local economy. Since providing Smartflow Couplings with the additional funds needed, the company is already recruiting members of staff, as well as providing the vital cashflow to overcome the challenges associated with the rising costs of raw materials.”

Sean Hutchinson at British Business Bank, said: “NPIF funding has a range of uses, such as building teams, and purchasing new equipment to support the development of new product lines. This latest NPIF loan, backed by the Recovery Loans Scheme, will support Smartflow in meeting its every-increasing customer demand and bring more of its innovative products to market. In doing so it is generating employment and economic growth in the local community helping to achieve NPIF’s ambition of a stronger North. NPIF’s objective is to support SME growth across the North and I would encourage other businesses with an ambition to grow to get in touch with our fund managers and see what support is available.”