BM Steel on track for record trading year following Secure Trust Bank support
With BM Steel closed for four weeks to ensure the business was Covid safe, Secure Trust Bank moved fast to provide the firm with the additional liquidity it required through the provision of a Coronavirus Large Business Interruption Loan.
The support through the pandemic was a continuation of the established relationship between BM Steel and Secure Trust Bank. In 2018, Secure Trust Bank provided the firm with a £35m facility to complete the acquisition of South Essex Stockholders – a steel stockholder and supplier based in Shoeburyness – before supporting further with facility increases and backing BM Steel’s acquisition of Midlands-based supplier SPS.
This support has enabled the 144-year-old business to stretch its focus to continue developing high-margin products, furthering its profitability. A streamlined approach was adopted with investment in technology to increase BM Steel’s value-added processing capacity and to enhance its service proposition alongside its core buying and selling operation.
Founded in Glasgow, BM Steel now has 14 depots across the UK.
Mick Welden at Breal Capital, owners of BM Steel, said: “The relationship between BM and Secure Trust Bank has always been a real partnership. Secure Trust Bank challenges us in the right areas but is a supportive, straightforward, and sensible lender.
“When Covid hit, Secure Trust Bank understood the strength of our businesses and was ready and willing to guide us through the Covid loan schemes process. Moving forward, we are looking to continue to serve our existing clients and, with our new business model in place, we are focused on adopting our new e-commerce platform to further increase profit margins and serve a burgeoning online market.”
Jeremy Uphill, head of portfolio at Secure Trust Bank, said: “We have worked closely with BM Steel to form a strong partnership built on trust.
“Our creative approach has supported BM Steel on its growth journey, through acquisitions as it sought to reposition itself with higher value products.
“Forming a strong relationship over time and committing to working with the business’ leadership team is key to our success with clients and helping them prosper. We look forward to seeing BM Steel progress further still.”