R&M Engineering02 November 2017
Shawbrook Bank oils the wheels of industry for R&M Engineering with £1.25m working capital deal
Shawbrook Bank has delivered a £1,250,000 funding transaction to boost R&M Engineering’s working capital to facilitate the company’s sustained growth.
The existing facility was due for renewal and the directors saw this as an opportunity to go to market to identify a flexible finance provider with a strong relationship ethos.
Ewan MacKinnon at Maven Capital Partners, who invested in the business during 2014, introduced the directors to Shawbrook Bank who structured the seven-figure working capital funding deal.
R&M Engineering (Huntly) Ltd was founded over 30 years ago to provide fabrication services for the Oil & Gas industry. Over this time, the business has established a reputation as a provider of high quality products and services to a broad customer base of blue-chip oil and gas operators and tier 1 contractors.
Operating from purpose-built premises in Huntly, Aberdeenshire, R&M Engineering is one of the few independent energy services companies in the UK with the expertise and infrastructure to carry out large and complex projects involving hydraulic, pneumatic and electrical work. The business undertakes all processes in-house including design, machining, welding and final fabrication.
“We saw the renewal of R&M’s funding facility as an ideal opportunity for us to compare the market. We undertook a rigorous selection process to identify a suitable funding partner and applied a variety of criteria, ranging from economics and service through to deliverability. Shawbrook Bank came out on top on all counts.
R&M Engineering is currently in growth mode and Shawbrook Bank has provided us with the working capital required to take advantage of opportunities in the market. Above all, Shawbrook listened closely to what we wanted to achieve and created a flexible solution that is perfectly suited to the needs of the business. As well as being competitively priced, the facility is dynamic. So, instead of having to wait until the contract has been delivered and invoicing at completion, Shawbrook Bank structured the funding solution in such a way that the business is able to draw down against milestone invoices when key stages of the project have been achieved.
We value the support of the team at the local Shawbrook Bank Business Centre. They are there for us and have always been quick to respond to our requirements.”
Ewan MacKinnon, Investment Director Maven Capital Partners
“This is an exciting time for R&M Engineering. We look forward to supporting this profitable fabrications business with additional headroom coupled with excellent local customer service as they seek to drive sales growth and expand their range of services.”
Lorna Bell, Business Development Director, Scotland Shawbrook Bank