EOA Member News – Raised Floor Solutions Secures CBILS Loan
Raised Floor Solutions has secured a substantial six-figure loan through the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Banking Group.
The specialist composite flooring contractor, which is employee owned, is Kingspan’s largest UK steel decking approved supplier with a significant share of the UK composite floor decking market and a £17 million annual turnover.
The CBILS funding package provides significant liquidity to return to normal capacity as soon as it is safe to do so. Sixty per cent of its workforce were furloughed initially following the closure of the majority of construction sites across the country and the temporary closure of Kingspan’s steel decking manufacturing operations.
However, close liaison with clients and suppliers enabled Raised Floor Solutions to continue to successfully deliver numerous projects at sites that remained open and safe during March and April 2020.
In April, the business also succeeded in securing new steel decking, concrete floor slab and access flooring contracts with a total value of £3million, its second highest monthly order intake since the company was established in 2003, which also secures 2020 turnover targets and provides a substantial forward order book.
Contracts secured include 6,000m2 of steel decking for UK Vaccines in Oxford, 37,000m2 of steel decking and composite concrete flooring for Dock 5 in Salford, a total of 12,000m2 of steel decking for two Ocado distribution warehouses in Andover and Purfleet, and 4000m2 of high specification access flooring for two new schemes, The Shed in Cornwall and Laser House in London.
MD Graham Hewitt believes the loan from Lloyds Banking Group will not only provide ongoing working capital but a vital safety net should main contractor clients become casualties of Covid-19.
He says, “In these uncertain times, despite our credit insurance policies, it only takes a couple of bad debts to put cash flow under pressure. It is heartening to work with the team at Lloyds as we, along with the whole construction industry, face unprecedented challenges from the coronavirus pandemic. Securing CBILS funding from the Bank was essential to provide a stable cashflow during this extraordinary period.
“As an employee owned business, protecting our staff, key supply chain and subcontractors is of upmost importance. These funds from Lloyds Banking Group put Raised Floor Solutions in an extremely solid financial position to fulfil our order book and for us to continue to take on new projects over the next 12 months and beyond. As more and more clients are advising that sites are reopening, we look forward to being able to welcome all our employees back to work as soon as we are able to,” he adds.