New contracts for Cramlington inspection company after £250k growth capital investment
Hazardous area inspection business Cenelec Standards Inspections Ltd (CSI) has won contracts in the oil & gas and utilities sectors with the help a six-figure investment.
The Cramlington-headquartered company received £250k from the North East Growth Capital Fund to use as working capital while it targets new business.
CSI helps companies meet their health and safety obligations as they operate in potentially explosive environments such as oil rigs and refineries, distilleries and chemical plants.
Following the investment, secured through NEL Fund Managers, CSI is now providing services to two new clients – National Grid and United Utilities.
The deal marks the fourth time NEL has invested in CSI during the last seven years. Previous capital supported the development of a training centre in Newcastle.
CSI was founded in 1986 and today employs 80 people on a turnover of £5m.
Jonathan Gibson, CSI managing director, said: “The company has seen rapid expansion in client base and variable industry over the last few years, but the biggest challenge in managing business growth is operational cash flow that comes from an increased workforce, associated cost and challenging commercial times and terms.
Working with NEL Fund Managers, Jonathan said, was a “positive” experience that involved “a fairly rigorous process of due diligence”.
He continued: “There is a clear trend from our clients to provide long-term multi-year framework agreements, ensuring solid foundations to develop business relations, but it is imperative that your business also has the capability to commercially cope with an increasing debtor book in line with your profit and loss projections and growth planning.”
NEL invested in CSI through the North East Growth Capital Fund Supported by the European Regional Development Fund.
Jane Siddle, NEL Fund Managers investment executive, commented: “CSI have always made extremely good use of the investments we’ve provided, and provide an excellent example of how to use this sort of capital at different stages of a business’s development.”