Last Updated on: 22nd November 2023, 12:41 pm
Arbuthnot Commercial Asset Based Lending (ACABL) has structured and delivered a £6m revolving funding line, providing ongoing working capital to enable Loughton Contracts Plc to realise its ambitious growth plans.
A two-generation family business established for over 30 years, Loughton Contracts is the UK’s leading flooring contractor, with a proud history of delivering prestigious projects for some of the world’s largest brands and institutions. Previous projects include iconic buildings like Lord’s Cricket Ground, The National Gallery, Theatre Royal, Science Museum, Amazon HQ, and Battersea Power Station, to name just a few.
Paul Smyth, Managing Director of Loughton Contracts Plc, said:
“We had worked with the team at Arbuthnot Commercial ABL some years before and had built an excellent relationship, so they were the natural choice to fund our next phase of growth. They visited us and were very interested in our business, the new technologies we have developed, and our expansion plans and showed a real willingness to work with us.”
He added: “The new facility Arbuthnot has delivered will give us the flexibility we need to meet our growth objectives, which should see our turnover rise from £55m this year to £75m within the next three years. Some of our orders exceed £10m, and since we typically don’t get paid for 60 days, we have a significant cash flow gap to cover. Having a revolving funding facility is essential for us to achieve preferential prices from suppliers and to attract the best installation teams, which we need to pay on a fortnightly basis. We are thrilled to have the team at Arbuthnot with us on this exciting journey.”
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:
“Businesses such as Loughton Contracts are the foundation of the UK’s economy and its recovery. We are always pleased to back well-run businesses with capable and experienced management teams, strong customer bases, and the ambition to scale. Building strong and collaborative working relationships is fundamental to our lending philosophy of supporting clients to drive their performance, so we are particularly delighted to have the opportunity to support Paul and his team in achieving their next important growth milestones.”