Case Study: Facilitating Growth Through South Yorkshire Partnerships and Financial Expertise
Introduction
In the competitive landscape of manufacturing, companies often face the challenge of scaling their operations to meet rising demand without compromising their financial stability. This case study explores the successful partnership between two South Yorkshire-based companies, Porterdale and Custom Business Finance, and their collective efforts to create a sustainable growth plan and secure the right financing solution for a UK based manufacturing company. This collaboration not only enabled the manufacturer to take on more orders but also safeguarded its financial health amidst growing operational costs.
Background
The subject of this case study, a medium sized manufacturing company, found itself at a crossroads. With an opportunity to expand its production, the company was hindered by financial constraints. Increasing factory costs, including energy bills, materials, and labour costs, posed significant challenges. Despite exploring various financing options, the manufacturer was unable to create a strategic financial growth plan or find a suitable finance solution, threatening the company's ability to grow.
Therefore, the manufacturer reached out to Steve Carroll, owner of Porterdale due to the strong reputation of the Business Advisory company. Chartered Management Accountant and Business Advisor Steve, assisted by Financial Controller Lindsey Owen, immediately helped the manufacturer with their accounts and financial planning needs.
Steve Carroll, Owner of Porterdale
Objectives
The primary goals of the project were to:-
Ensure that the manufacturer was able to meet the increasing demands of their clients in a sustainable way
Enable the manufacturer to increase order intake and production without financial strain
Ensure the growth was managed - achieving the very best and most profitable outcomes
Hold the clients hands in general through a long period of growth through ongoing support
Approach
Porterdale, known for its Fractional CFO, Part-time Finance Director, and Part-time Financial Controller services, offered the strategic financial oversight needed to address the manufacturer's challenges. Their approach combined practical, personalised advice with extensive forecasting expertise to prepare the company for future growth.
Porterdale assisted initially in projecting cashflow and profit and loss forecasting as well as preparing extensive financial information for funders.
They provided this service, leveraging decades of cash flow forecasting experience.
But Porterdale didn't stop there. They were able to leverage their local business connections to work with Chris Mangle, Director at Custom Business Finance, based in Rotherham on behalf of the client.
Chris and his team at Custom Business Finance brought to the table over 100 years of combined experience in financial services, delivering a bespoke financing package tailored to the manufacturer's specific needs. Their deep understanding of the financial landscape and strong relationships with asset finance companies were instrumental in identifying the right lending partner.
Chris Mangle said, "The skill that Steve and Lindsey bring is intuitively knowing what lies ahead for their clients in the future and pre-empting any issues. It's without doubt that many businesses would struggle to achieve this significant growth without their help."
Steve Carroll said, "Ironically, within financial forecasts, best case scenario can often become worst the case scenario if the company runs out of cashflow!" He continued, "By looking at all the scenarios our two teams were able to create a very unique and robust finance solution for the client. It's wonderful to watch their continued growth."
Chris Mangle with colleagues at Custom Business Finance
Solution
By working together, the two companies were able to the identify and secure a financing solution that matched the manufacturer's billing profile with an appropriate lender.
Pairing up ongoing strategic financial and business advice with this arrangement not only covered the immediate operational needs but also future-proofed the company's working capital against various scenarios outlined by Steve and Lindsey. The solution was testament to the power of combining expert financial forecasting with the right financial product knowledge and business connections.
Ultimately, the collaboration between Porterdale and Custom Business Finance resulted in significant and sustainable business growth:- increasing profit and turnover within just a few months.
Success Metrics
The success of this partnership was evident in several key outcomes:
The manufacturer was able to accept and fulfil more orders, driving revenue growth.
The strategic financial planning and tailored financing solution mitigated any business risk created by fast growth.
The case demonstrated the effectiveness of local collaborations in overcoming business challenges, a partnership that Chris and Steve are replicating with other companies.
Conclusion
The partnership between Porterdale and Custom Business Finance highlights the importance of pairing up both strategic financial planning and financial solution knowledge in securing business growth and stability. By leveraging their combined experience and networks, the two companies provided a lifeline to a UK manufacturer facing significant financial hurdles. This case study serves as a compelling example of how targeted financial solutions and strong local partnerships can empower businesses to overcome operational challenges and achieve their growth objectives.
To find out more, book a call with Porterdale today.
