25/07/2014

Oldham-based manufacturer to expand after receiving seven-figure funding package

An Oldham-based manufacturer, Quantum Profile Systems Limited is to continue expanding, following the purchase of its business premises, with support of a seven-figure funding package from Lloyds Bank Commercial Banking and The North West Fund for Loans Plus, managed by FW Capital.

Established over forty years ago, Quantum Profile Systems Limited manufactures specialist building products under the Quantum, Dacatie, Qwood & Q Lean Supply brand names. The business has grown significantly over the last five years and the company now has a client base of distributors and manufacturers across the UK and Ireland.

The board of directors decided to purchase the business premises from the landlord to put Quantum in control of the key asset it required to support the expected growth of the business in the coming years. A new extension, which will be constructed over the next 18 months, will contain new machinery to increase production capacity and capitalise on a rise in product demand.

As a result of the expansion the business’ turnover is expected to increase by at least 50% over the next four years.

Clive Bowen, director at Quantum Profile Systems, said: “Adopting lean manufacturing principles has contributed significantly to the business’ growth over the past five years, improving productivity, minimising inventories and creating value for the customer.

“As the business grew the board of directors recognised that we would need larger premises for additional equipment to help cope with the increase in demand.

“By purchasing our current premises we not only avoid the complications often involved with relocating, but we can build an extension best suited to our business requirements,  expand our production capacity and explore further growth opportunities including new products and exporting.”

In order to gain the funding to purchase the premises the board approached Lloyds Bank Commercial Banking which provided a six-figure loan through the Funding for Lending Scheme, under which the Bank offers a one per cent discount for businesses across all sectors for the life of their loan.

Lloyds Bank Commercial Banking also introduced the company to FW Capital which backed them with a six-figure loan from The North West Fund for Loans Plus to help buy the property.

Clive added: “We switched to Lloyds Bank Commercial Banking after becoming frustrated with our previous banking partner, and the service the relationship team provided throughout the process of purchasing the premises has been invaluable.

“Our relationship director was always on hand to provide guidance throughout the process as well as introducing us to FW Capital to ensure that we received a funding package that suited our specific business needs.”

Gareth Hall, relationship director at Lloyds Bank Commercial Banking, said: “When the board of directors approached us we could immediately see that purchasing the premises would enable the business to expand without the expense of moving to a different site.

“At Lloyds Bank Commercial Banking we strive to help customers to find a finance package that is right for them, and we are happy to introduce them to alternative funders to achieve this.

The business was also provided with an invoice discounting and hire purchase facility which enabled the firm to borrow money against outstanding unpaid invoices in order to invest in new machinery.

 Andy Pascoe relationship manager at Lloyds Bank Commercial Finance, said: “Invoice discounting and hire purchase facilities can be a useful tool for manufacturing businesses like Quantum Profile Systems Limited, as it allows companies to use working capital from the its order book and assets to invest in growth opportunities, without affecting its day to day cash flow.”

 “We are dedicated to supporting manufacturing businesses such as Quantum Profile Systems Limited, and as part of our Helping Britain Prosper Plan, we have pledged to lend an additional £4 billion to manufacturing companies by the end of 2017.”

Chris Pestell, senior investment executive at FW Capital, said: “Quantum Profile Systems is an established manufacturer with an excellent track record and strong position in a competitive market. Clive and his team have worked hard to put in place major efficiency improvements recently and now have significant plans to expand their business.  

“Purchasing and extending their existing premises will provide Quantum with the extra capacity to make these plans a reality. FW Capital is pleased to have worked closely with Lloyds Bank Commercial Banking to structure a funding package for the purchase.”

The £45m North West Fund for Loans Plus can lend between £50,000 and £750,000 to North West businesses. It is part of the £155m North West Fund, which is provided by the European Regional Development Fund and the European Investment Bank.