A long-established engineering business in South Wales has strengthened its financial position and secured the funding required to support future growth after working with Azets to address both immediate cashflow requirements and longer-term strategic priorities.
The challenge
Established in 1990, the business has built a strong reputation over more than three decades, delivering bespoke mechanical, electrical and control engineering solutions to clients across sectors including manufacturing, food production, steel and material handling.
The directors initially approached Azets after becoming frustrated with the level of support and strategic guidance they were receiving from their previous advisers. At the same time, challenges within the internal finance function had reduced visibility over financial performance, cashflow and future planning.
While the business remained successful, the directors recognised the need for stronger financial oversight and a more proactive advisory relationship to support the next stage of growth.
Building a clearer financial picture
Working closely with the directors, Chris Jenkins took time to develop a detailed understanding of the business, its operations and its long-term ambitions.
Through a series of discussions, several opportunities for improvement were identified, including the need to strengthen the finance function and improve financial reporting.
One of the first recommendations was the appointment of a fractional Finance Director. By enhancing financial leadership within the business, the directors were able to improve reporting processes, strengthen forecasting capabilities and gain greater visibility over cashflow, profitability and operational performance.
This provided a more robust platform for decision-making and helped create a clearer understanding of the business's financial position.
Identifying a funding opportunity
As discussions progressed and a more detailed picture emerged, it became clear that the business faced an immediate working capital requirement.
This represented a potential constraint on the company's ability to maintain momentum and pursue future growth opportunities. At this stage, Azets' Debt Advisory team became involved to review the company's funding arrangements and explore opportunities to strengthen its overall funding position. What initially began as a review of existing facilities quickly evolved into a wider funding exercise.
Following detailed due diligence and a comprehensive assessment of the business, its financial performance and growth plans, the team identified a requirement for additional working capital to support both day-to-day operations and future investment.
The solution
Working closely with the directors and presenting a compelling funding case to the market, Azets successfully secured a £500,000 unsecured cashflow loan at a competitive interest rate.
The funding provides immediate financial flexibility, strengthens working capital and gives the business greater confidence to continue pursuing its growth strategy.
Just as importantly, it has created additional headroom within the business, providing more options and resilience as it navigates future opportunities and challenges.
Creating long-term value
The engagement has since developed into a broader advisory relationship encompassing multiple areas of the business.
Alongside ongoing finance function support and debt advisory services, discussions are progressing around:
- Business and group restructuring
- Property ownership considerations
- Management buyout planning
- Retirement strategies
- Succession and inheritance planning
- Payroll and tax advisory support
By bringing together specialists from across Azets, the business now benefits from integrated advice designed to support both current priorities and future ambitions.
Supporting growth through greater financial headroom
Many business owners associate funding conversations with distress or financial pressure. In reality, some of the most successful funding outcomes arise when businesses act proactively and seek advice before constraints become a significant issue.
In this case, stronger financial visibility, improved forecasting and access to the right funding solution have provided the business with greater financial headroom. That flexibility enables the directors to focus on growth, investment and long-term planning with greater confidence.
How Azets can help
Whether your business is preparing for growth, reviewing existing funding arrangements or looking to improve cashflow visibility, understanding your financial position early can create more options and better outcomes.
Our Debt Advisory specialists work with businesses to review funding structures, improve financial resilience and secure finance solutions that support future ambitions.