UKSE

Investment

14 October 2019

Project overview.

  • Case Study Type: Investment
  • Activity: Manufacturing
  • Region: Yorkshire, Humberside & the Midlands

Architectural Fabrications Ltd (AFL) has expanded rapidly since we invested in the company 3 years ago.

AFL provide a full service in designing, manufacturing and installing high quality bespoke architectural metalwork for the construction sector.

Owner and Managing Director Chris Hadfield could see his sales pipeline growing rapidly as the company’s reputation grew. AFL was being asked to tender for larger and more prestigious projects. He knew he would need funding to be able to grow and take on these bigger contracts.

He needed additional working capital finance: to pay for the increased raw material stock and work-in-progress required, to pay more staff and to cope with the gap between paying suppliers and getting paid by customers.

If things went to plan, bigger premises would be required too.

"The investment from UKSE has been vital and means that we can be more competitive, create jobs and ultimately scale-up the contracts that we go after."
Chris Hadfield, Owner

How we did it.

AFL was looking for an investment partner, not a bank. We agreed to invest £400,000 in the company. With part of the funding we bought shares in the company, strengthening its capital base, and alongside that we provided unsecured loan finance.

Chris remains completely in control of his business.

Neither the company nor Chris himself were required to provide security and no personal guarantees were needed either. This allows AFL more freedom in arranging commercial debt facilities and helps maximise the amount of finance they can raise.

The company continues to grow and has recently moved into new, bigger premises.

The results.

Increase in sales

The company has been able to take on bigger contracts and sales have grown by 65%.

New jobs

The growth in sales, along with the company looking to invest further, has helped create 30 new jobs.

New premises.

Outgrowing their old premises, the company has now moved to a new, bigger site.