Ash & Lacy is a leading manufacturer and distributor of metal building envelope systems and ancillary products. The business, which has an annual turnover of £24 million, has three locations nationwide and is headquartered in West Bromwich.
Challenge
Following their acquisition from The Hill & Smith Group, Ash & Lacy has gone through a period of investment in enhanced manufacturing processes, including bringing previously sub-contracted processes in-house. Subsequently, the business sought to expand rapidly into new product areas. Jonathan Evans, Chief Executive Officer at Ash & Lacy, called upon the services of Cattaneo LLP, an independent corporate finance advisory practice, for advice on suitable solutions to fund the continued development of the organisation.
Solution
Cattaneo LLP introduced the Ash & Lacy team to Keith Rose, Senior Sales Director at Close Brothers Invoice Finance. Further to a number of discussions to understand the requirement in more detail, Keith worked with colleagues across Close Brothers to put together a £7 million asset based lending (ABL) solution. This consisted of online invoice discounting using IDeal™, stock finance and also an asset finance package to repay existing acquisition debt whilst providing additional headroom for further investment.
Result
This bespoke funding package will provide the business with enhanced financial flexibility as it continues its capital investment programme that aims to improve efficiency, grow sales and create new jobs. Andrew Waterhouse, Finance Director for Ash & Lacy, along with his finance team, have been particularly impressed with the IDeal™ product because of its ease of use, flexibility and “real time” capabilities.
Jonathan Evans commented: “We are pleased to have selected a partner in Close Brothers. They have the appetite to invest in our sector and through listening to us and making an effort to understand our business plan, they were able to provide facilities that will allow us to make investment decisions that will have an immediate and positive impact on the growth of our business.”
Keith Rose, Senior Sales Director at Close Brothers Invoice Finance in Birmingham, said: “We are delighted to have this opportunity to work with Ash & Lacy, a brand name that is synonymous with the Midlands Region. We were extremely impressed with the company’s market position, manufacturing quality and importantly, with their highly experienced and motivated management team that knows exactly where they are taking the business.”
Martyn Pilley of Cattaneo LLP added: “The construction sector has been slow to emerge from recession and remains a challenging environment for many banks. However, Ash & Lacy has demonstrated the results that can be obtained from a carefully targeted investment which appealed strongly to Close Brothers Invoice Finance who have tailored a financial package that will meet the needs of this forward looking business.”
