Reward Finance helps North-East business entrepreneurs diversify into eco boilers
North East businessmen, David Fisher and Aidan Tait, who trade as FT Management Consultants, have expanded their business interests into renewable heat energy boilers, having identified the opportunity to generate income through the Government’s Renewable Heat Incentives.
SME funder, Reward Finance, provided FT Management Consultants with a £580k cash advance to secure the deposit on 20 boilers, ten of which were purchased at short notice and at a reduced rate from the Scandinavian supplier, as they formed part of an order which could not be fulfilled by another party.
The first ten boilers have now been installed at North Waste Recycling, a wood recycling plant in Shildon, County Durham, where they are being used to provide heat to dry out wood to the correct moisture level so it can be used as fuel.
Although FT Management Consultants retain ownership of the boilers, and charge for the heat generated, NWR will benefit from a percentage share of the RHI.
The boilers from Scandinavia are in the process of being installed at a pellet mill in Cornwall and a newly planned pellet mill in Teesside.
Speaking about the diversification of business interests, David Tait, director of FT Management Consultants, said:
“We are continually looking at opportunities to develop business interests in other sectors. Having reviewed business utilities we identified the income generating potential of eco boilers, which provide a cost effective and tax effective alternative to fossil fuels and conventional heating systems.
“Friends of ours, who are directors at North West Recycling, had talked about the need for boilers to dry out the wood in their plant, which presented us with the perfect opportunity for a mutually beneficial relationship. We were able provide the capital outlay to purchase the boilers with the confidence that NWR could put them into operational use, thereby creating immediate revenue.
“We are extremely grateful to Reward Finance for understanding the business model and revenue potential and for quickly providing us with the finance. This enabled us to take advantage of the attractive discount being offered by the manufacturer, before other interested parties were able to beat us to the deal.”
Commenting on the deal, Karen Paige, head of portfolio management at Reward Finance, said:
“Having worked with David and Aiden over many years, including advancing funds to successfully complete a housing development, we are confident with the way they operate and their integrity.
“We were impressed with the research that had gone into the move into eco boilers and the business plan they had prepared. They have identified a massive potential within this sector and we had no hesitation in providing the funds within a matter of days.”