A north Wales manufacturer of print cylinders has boosted its productivity by over 50% after securing a six-figure funding package. Riverside Gravure is one of two printing cylinder manufacturers in the º£½ÇÊÓƵ and sells to a range of sectors including security and pharmaceutical.
The Deeside-based company received £600,000 in asset financing from Lloyds Bank to purchase two new machines to increase operations and meet rising demand. It purchased a CFM Printing machine, that accurately polishes cylinders ready for laser engraving, and a Cumax Plating Tank that can plate cylinders six times faster than its previous equipment.
The firm said that overall running costs have reduced 10% while productivity has increased by 50% since the introduction of the new machines. It is now planning to expand its headcount by almost 10% over the next six months as it targets further growth.
Read more: Labour promises º£½ÇÊÓƵ steel industry will be ‘backed not abandoned’
The manufacturer also moved all of its invoice financing to the bank in order to free up working capital as it explores further growth opportunities. Managing director Mike Hughes said: “It’s been an immensely challenging few years for our industry and we’re one of the lucky ones that have managed to not only survive but put long-term growth plans in place.
“During the pandemic, we saw a 50% reduction in demand and output which put a lot of pressure on us. However, we remained optimistic, and we are extremely proud to have been able to build back bigger than before.
“Thanks to the support from Lloyds Bank, we’ve been able to increase our productivity in the workshop and meet the returning demand from our customers. The financing we received will allow us to be more profitable and help us to grow our team while increasing our resilience as a business.â€
Jonathan Kemp, regional manager at Lloyds Bank, said: “Riverside Gravure has an incredible drive for growth, something we’re seeing across the manufacturing sector at the moment. This is further evidenced by the latest Lloyds Bank Sector Tracker that shows 69% of º£½ÇÊÓƵ manufacturing firms expect to see output increase over the next 12 months. It’s great that Riverside Gravure has ensured they have the best equipment to meet this increased demand.
“At Lloyds Bank we offer businesses a full range of asset funding options. For manufacturers like Riverside Gravure, using this financing to invest in cutting-edge equipment and technologies has helped it to stay competitive in a niche sector, and reach its full growth potential.â€
