Independent Growth Finance (IGF) has agreed an asset-based lending deal with oil and gas manufacturer Pryme worth £4.5m.
Based primarily in the north of England, Pryme previously secured a £2.75m invoice discounting facility from IGF in June 2017. In 2018, Hydratron, a manufacturer of high-pressure air driven liquid pumps, gas boosters and associated systems joined the Pryme Group.
The second half of 2018 saw Pryme Group’s work ramp up significantly securing a £3.5m contract in oil and gas works. This was quickly followed by the opening of a ‘Centre of Excellence’ in North Shields. The 58,000 sq ft location cost Pryme Group £9.5m and required an investment of £4.2m for machinery.
IGF has now increased Pryme Group’s funding facility to £4.5m to further support its expansion into the defence and aerospace industries. The company has recently acquired AS9100 accreditation, a widely adopted and standardised quality management system for the aerospace industry. Pryme Group is forecasting a further 20% growth in 2019.
Kerrie Murray, Pryme Group chief financial officer, said: “Just two short years after a shaky period for the gas and oil industry we are now in a position of strength, with more people, capabilities and capacity to our name than ever before.
“We had never approached a funding partner before, so you can imagine it was a big decision for us, and critical that we found the right people that understood us and our vision. IGF got to know the company and the management team which has helped us achieve a great working relationship in a short space of time. We are a much bigger business today than when we approached IGF back in 2017, but they have grown with us along the way.”
Jon Hughes, commercial director ABL for IGF said: “From time to time industry leading innovators like Pryme Group need support from funding partners to ensure they don’t suffer in the long-term because of short-term factors outside their control. Alternative finance is on the rise because we have the flexibility to make decisions that more traditional lenders can be hesitant towards. IGF is proud to support British SMEs, ensuring they remain independent and focused on what they do best.”
In March Independent Growth Finance issued a £7.5m funding agreement with civil engineering and railway company Specialist Engineering Services (SES).