Ultimate Finance Group
Region: West Midlands
Programme: Investment Programme and our other commercial investments
Cliveland Spinning is a leading manufacturer of quality spun components with an emphasis on high precision reflectors and all forms of lighting products.
However cheaper imports were beginning to affect the core business so it had to think laterally to beat the competition from both China and India. It therefore diversified its product range by producing aluminium planters and grave vases.
It now has contracts with some of the key distributors of memorial products and this part of the business currently represents 25 percent of the turnover. However, as Cliveland Spinning is having to buy increasing amounts of steel to keep up with demand, huge pressure was being put on cashflow with the steel having to be paid for promptly with customers taking as long as 90 days to pay their invoices.
Ultimate Finance provided the company with a £70,000 invoice finance facility, which means that 95 per cent of the value of invoices issued can be released the very next day enabling Cliveland Spinning to pay for the steel without having to accumulate large reserves of cash.
Managing director of Cliveland Spinning, Andrew Sale, who started the business ten years ago, is delighted with the demand for the new products.
“The competition to British manufacturing from China and, more recently, India has been well documented,” he said. “We therefore needed to put provisions in place and look at different products we could create using our existing machinery and skills.
“Initially we created aluminium planters in a range of attractive colours. This idea then extended into monumental vases which are weatherproof, less expensive to manufacture than stone, and lighter to transport. Demand has been high since the day we introduced them, which put quite a strain on the cashflow. However Ultimate Finance was quick to see our potential and grant us an increased facility to help meet demand.”
Lesley Mouncher of Ultimate Finance was pleased to help.
“As a country we need to support British manufacturing against tough competition from overseas,” she said. “Cliveland Spinning is a great example of forward thinking and innovation that has resulted in a product extension which has dramatically increased turnover and reduced its total reliance on lighting products.”