Case Study: Armstrong Watson secures short-term funding to help steel supplier get back on track
Background
Founded in 1810, John W Laycock Limited has a proud 215-year history, and despite the recent challenges, the business remains committed to adapting and evolving to secure its future.
The Keighley-based steel services provider was in a period of transformation following a dip in performance due to volatilities in the price of steel in recent years, brought about by Brexit and the Ukraine War. It also experienced significant performance issues with a profiling machine, which had impacted margins and profitability.
The decision was taken to consolidate two sites into one, which would save costs in the long term, but hit the business with a short-term cash outflow.
This all led to cashflow shortages, which in turn resulted in creditor pressure and difficulty purchasing stock to sell.
The company needed short-term funding to get through this difficult period, but with its bankers not willing to offer any additional funding due to the recent financial performance, Managing Director, Mark Sugden, turned to Armstrong Watson for support. He was in regular discussions with his Relationship Manager, so we were well placed to assist at short notice.
What we did
Our funding specialist, Lee Hayes, undertook a full review of the company’s assets, liabilities and recent accounts. He found that the company’s trading premises had a ‘ransom strip’ that a local property developer wanted to purchase, which was likely to bring in additional cash. However, planning permission needed to be obtained to achieve this.
We advised that the best way to release the funds needed to cover the business’s short-term cash requirements was to use this ‘additional cash’, but we needed to bridge the time gap between the funding being needed now and the cash being realised from the land sale.
Lee prepared a detailed lending proposal and distributed it to various lenders, ultimately advising the company on the best option in terms of cost, service and timescales.
He then project-managed the process from proposal to drawdown, liaising between the funder, solicitors, and John W Laycock.
We worked successfully with the client by:
- Investing in the relationship and fully understanding the needs of the business
- Using our expertise and contacts in the funding market to find the right solution
- Overseeing the project from start to finish to add value to the client and ensure the desired outcome
Results
The business was provided with the funds it needed quickly and efficiently, and gained immediate cashflow benefits, which took significant pressure away from Mark and allowed him to move the business forward.
John W Laycock should ultimately be in a cash-neutral position once the piece of land is sold, and its trading premises will still hold the same value and be unencumbered once the loan is repaid from the sale proceeds.
Mark Sugden, Managing Director, John W Laycock Ltd, said:
“Lee gained a full and detailed understanding of the challenges facing our business. He was both supportive and challenging, where required, to ensure that we left no stone unturned in establishing an achievable and effective plan. Once the plan was agreed, Lee worked at pace to get appropriate people involved - all contacts were of a very high calibre - this has resulted in a successful execution of the plan and as a result the business is back on track.
“Thank you to Lee and all the support team at Armstrong Watson for being 'with us'.”
Lee added:
“We understood that this wasn’t just about securing funding—it was about restoring confidence and enabling the business to regain momentum after a challenging period. By identifying the potential value in the land sale and bridging the timing gap, we were able to unlock a solution that traditional lenders weren’t willing to explore.
“Helping Mark and the team navigate this situation and get back on track was incredibly rewarding, and it’s a great example of how tailored advice and strong relationships can make a real difference.”
