Secure Trust Bank Commercial Finance has provided a £14.75m finance facility to Formaplex, to support the company’s investment in new machinery as it looks to develop more lightweight and durable products.
Established in 2001, Formaplex provides mould tooling for the Formula One industry. The company also manufactures world-class accredited lightweight component solutions for tier one automotive clients and prestigious OEMs.
Since 2015, Formaplex has invested more than £20m in plant and machinery to support its evolution from a tooling business to a lightweight component manufacturer. This has been supported by £7.5m of additional investment by Dunedin LLP, the company’s private equity shareholder.
The business has a turnover of circa £65m, with revenues forecast to grow by 40% by June 2019, and employs 720 staff members across its Portsmouth headquarters and four manufacturing sites in Hampshire.
The £14.75m provided by Secure Trust Bank Commercial Finance will help manage cashflow, and allow Formaplex to invest in 3D printing equipment, which will bolster its product range and boost sales. The equipment will enable the company to manufacture more lightweight and sustainable products, in line with customer demand for vehicles with lower carbon emissions.
Tony Young, regional sales director at Secure Trust Bank Commercial Finance, said: “Formaplex boasts an impressive client base, consisting of some of the automotive industry’s biggest brands. Its products are already at the forefront of modern engineering, and with this facility, the company will be able to continue its development of innovative products.
“We were keen to support the firm’s ambitious plans, which has already seen revenues projected to rise by 40 per cent, and we’re looking forward to continuing our relationship with the management team as they continue to grow.”
Mike Bryant, CEO at Formaplex, said: “There is increasing demand from our customers for more lightweight products, which is being driven by the growing number of environmentally conscious consumers. The funding from Secure Trust Bank Commercial Finance will allow us to invest in the latest technologies, and, in turn, manufacture state-of-the-art parts that are not only sustainable but also durable. We’re confident this new range of services will significantly boost revenues and help us meet our objectives.”
Paul Rayner, chief financial officer at Formaplex, said: “Given the long lead times between customer payments within the manufacturing industry, the invoice finance facility from Secure Trust Bank Commercial Finance will help us boost our working capital and allow us to invest in the future growth of the business. Tony Young took the time to understand the company and our requirements, and we are now perfectly placed to execute our business plan.”