Surrey Business News

30/11/09 VerdErg Connectors Expansion - Help from Clydesdale Bank

Rapid expansion is in the pipeline for a Surrey-based supplier to the oil and gas industry after it secured £750,000 funding support from Clydesdale Bank.

VerdErg Connectors, which has its headquarters in Knaphill, is an engineering and consultancy firm that has developed a specialist sub-sea connections system for its offshore energy company customers, which include industry giant BP.

Having been expanding steadily following a management buyout in 2005, it was a surprise when funding from its previous bank dried-up as a result of the economic climate. However, Clydesdale Bank stepped in to ensure VerdErg growth plans could stay on track, with a successful application for funding under the Governments Enterprise Finance Guarantee (EFG) scheme.

Neil McCluskey, managing partner at Clydesdale Bank Financial Solutions Centre in Reading, which covers the Thames Valley region, said: "The EFG scheme is designed to help viable businesses in these difficult times and we
are delighted to have been able to help out with this finance."

"VerdErg Connectors is a good example of the sort of company that can benefit from the scheme as they produce a problem-solving product that is in great demand. They are led by an impressive management team that knows
exactly what it wants to achieve and we're looking forward to helping them build on their position as a leader in their field."

VerdErg Connectors supplies a number of the significant players in the industry and is working on several deep-sea projects around the world from the Shetland Islands to Angola. The company's latest product was adopted by
the industry very quickly as it made possible a tricky underwater connection.

Renato Martins, financial director at VerdErg Connectors, said: "We are using the EFG to finance our growth. We had a turnover of £5m last year, which will have doubled to £10m next year due to existing contracts, and we will be growing at an even faster rate in the years that follow."

"As a result of the credit crunch our previous bankers could no longer provide further funds, but we needed some fast funding to finance our growth. What impressed me about Clydesdale Bank was their willingness to explore all funding options. They were very focused and flexible and I hope our association is a long-term one."

Neil McCluskey added: "Our attitude to all forms of lending has remained consistent throughout the economic difficulties. As a bank, we were quick to respond to the EFG scheme and since its introduced in January we have
approved more than 150 applications, over 100 of which have already been processed to give the businesses the funds they need. Unlike some other banks we are also well on target to lend our entire allocation under the EFG
scheme."

EFG loans can be used for a range of business needs, from buying assets to funding working capital, and payment terms can be tailored to suit the needs of the business.

Clydesdale Bank has 10 business branches, known as Financial Solutions Centres, in the South East. Most lending decisions can be taken locally by the managing partner without the need to defer to a centralised head office.

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