A Black Country manufacturer of forklift truck attachments and skips has more than doubled its turnover following funding from BCRS Business Loans.
Ridgeway Manufacturing Limited, based on Cookley Wharf, Brierley Hill, secured funding for a management buy-out in 2022 from the Community Investment Enterprise Facility (CIEF) managed by BCRS Business Loans and has grown turnover from £1.6m to £4m.
In 2022, long-serving company directors Melvyn Heath and Doug Jones were presented with the opportunity to take over the business when they were given the option to complete a management buy-out (MBO).
Through a combination of funding from the Community Investment Enterprise Facility (CIEF), and its own funds, BCRS provided Ridgeway Manufacturing with the £175,000 investment required to support the MBO.
Two years later, and with the loan paid off, Ridgeway Manufacturing has gone from strength to strength, leasing an additional 7,000 sq. ft unit on their existing industrial estate to meet customer demand and keep lead times to a minimum.
They have increased their workforce from 15 to 32 employees including a welding apprentice. The business has plans to recruit an additional eight welders and further apprentices in the near future.
During the past two years, the business has retained all 15 of its long-serving members of staff. Looking after their experienced team has ensured that the skills and technical knowledge of their fabricators have remained in the business.
Established in 2008, Ridgeway Manufacturing produces forklift truck attachments and roll-on roll-off skips together with bespoke steelwork fabrications, servicing customers across the UK and worldwide.
Ridgeway Manufacturing co-owner Melvyn Heath said:
“We would recommend BCRS to any business looking to secure funding. Without their support, we wouldn’t have been able to purchase the business. If you have a product or service, and you believe you can do well, go for it.
“The future looks very bright for us. It’s important that we don’t get too comfortable, we need to push forward and expand into existing markets and venture into new markets.”
BCRS Business Loans senior business development manager Louise Armstrong added:
“Melvyn and Doug’s ambitious plans for growth have paid off and I am delighted that BCRS were able to provide the funding they needed for the management buy-out.
“It’s been great to see the business thrive over the last two years, bringing vital jobs to the area, upskilling its team and innovating with development of a new range of products to target new markets.”
Alastair Davis, CEO of CIEF fund manager, the responsible finance provider Social Investment Scotland commented:
“The CIEF fund is all about supporting SMEs to enhance and increase social and economic impact in local communities and the investment in Ridgeway Manufacturing has more than exceeded these objectives.
“We congratulate Melvyn and Doug on their achievements since taking over Ridgeway Manufacturing and look forward to hearing how they continue to grow and innovate in the future.”
The new CIEF II backed by Lloyds Banking Group and Better Society Capital comes after BCRS Business Loans was appointed as a fund manager for the new £130m Investment Fund for Wales in November and for the Midlands Engine Investment Fund II, which will deliver a £400m commitment of new funding for businesses across the Midlands.
Since BCRS was founded as a community development financial institution in 2002, it has provided loans worth more than £90 million to businesses across the West Midlands. A social impact report for the last financial year showed BCRS lent £5.8m to 72 businesses, safeguarding 675 jobs and creating 186 roles, adding £29.9m in value to the economy of the West Midlands, surrounding regions and Wales.
Visit www.bcrs.org.uk to discover more or submit an initial application form.