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24/09/2015

First Tees Valley Catalyst Fund loan for an advanced payment guarantee helps Dunston company win multi-million-pound 3-year contract

A short-term loan from the Tees Valley Catalyst Fund, which is managed by FW Capital, helped a Gateshead-based company to win a multi-million-pound 3-year contract with the Port of Felixstowe

Already an established contractor at the port, Techservices used the £680,000 loan to finance an advanced payment guarantee from Barclays Bank, a first for the Tees Valley Catalyst Fund.

Work is now progressing well on the contract to convert 54 cranes from diesel power to full electrification and install over 13km of steelwork and conductor rails, drastically reducing the Felixstowe’s carbon emissions and fuel consumption.

The contract has secured dozens of jobs at Techservices as well as its sub-contractors in the North East over the next 3 to 4 years.  Techservices also hopes to secure further contracts with Port of Felixstowe’s global parent company, Hutchinson Ports.

“Completing this contract will significantly improve the Port of Felixstowe and it’s also the largest and highest profile contract Techservices has won in the 36 years we’ve been trading. Work is now well underway and we’re pleased with the progress we’re making.

“The short-term loan from the Tees Valley Catalyst Fund enabled us to finance the advance payment guarantee we needed to secure this contract which has more than doubled our turnover and moved us up a gear.  It’s an excellent showcase of what we can achieve and we’re confident it will help us to secure high-value contracts in future,” explained Barry Renwick, Techservices  Director.

The Tees Valley Catalyst Fund was conceived by Tees Valley Unlimited (TVU), the Local Enterprise Partnership for the Tees Valley to provide companies in the Tees Valley with the finance to grow and prosper.  Access to the fund has since been widened to businesses across the North East and in parts of North Yorkshire.

The Fund provides businesses with short-term finance of between £100,000 to £2 million to enable them to fund performance, warranty, advanced payment and other types of bonds.

Commenting on Techservices’ success, Chris Johnson, Investment Executive at FW Capital said:  “Techservices beat off fierce global competition to secure this contract. It’s a significant win for the North East and its impact can be seen locally as it has helped to create and safeguard jobs and also create new opportunities for local suppliers. 

“This is the first advance payment guarantee we’ve financed from the Tees Valley Catalyst Fund and it clearly demonstrates the impact flexible, short-term loans can have. Techservices is making good progress delivering this contract and has already repaid our loan. I’m sure this contract will be a springboard for future growth.”

Tees Valley Catalyst Fund