A Welsh manufacturer specialising in print cylinders has increased productivity by over 50%, thanks to a £600,000 funding package from Lloyds Bank.
Riverside Gravure is one of only two printing cylinder manufacturers in the UK, selling its products to a range of sectors including security and pharmaceutical. In a bid to meet rising demand for its products, the company approached Lloyds Bank for funding to purchase two new machines to increase operations.
The manufacturer secured £600,000 in asset financing to purchase two new productivity-boosting machines. The first was a new CFM Printing machine that accurately polishes cylinders so they’re ready for laser engraving – replacing an older, unreliable machine. The firm also purchased a Cumax Plating Tank that can plate cylinders six times faster than its previous equipment, allowing the manufacturer to meet rising customer demands.
Since the introduction of the two new machines, overall running costs have been reduced by 10% and business productivity has been enhanced by 50%. The business is now planning to expand its headcount by almost 10% over the next six months as it targets further growth.
The new machinery has also reduced the businesses overall energy consumption by a fifth and provides zero waste product. Generating less energy means that all of the business’s energy requirements can now come from renewable sources.
Mike Hughes, managing director at Riverside Gravure Ltd said: “It’s been an immensely challenging few years for our industry and we’re one of the lucky ones that have managed to not only survive but put long-term growth plans in place.
“During the pandemic, we saw a 50% reduction in demand and output which put a lot of pressure on us. However, we remained optimistic, and we are extremely proud to have been able to build back bigger than before.
“Thanks to the support from Lloyds Bank, we’ve been able to increase our productivity in the workshop and meet the returning demand from our customers. The financing we received will allow us to be more profitable and help us to grow our team while increasing our resilience as a business.”
Jonathan Kemp, regional manager at Lloyds Bank, said: “Riverside Gravure has an incredible drive for growth, something we’re seeing across the manufacturing sector at the moment.
“This is further evidenced by the latest Lloyds Bank Sector Tracker that shows 69% of UK manufacturing firms expect to see output increase over the next 12 months. It’s great that Riverside Gravure have ensured they have the best equipment to meet this increased demand.
“At Lloyds Bank we offer businesses a full range of asset funding options. For manufacturers like Riverside Gravure, using this financing to invest in cutting-edge equipment and technologies has helped it to stay competitive in a niche sector, and reach its full growth potential.”
Riverside Gravure moved all of its invoice financing to Lloyds Bank, helping the business free up working capital as it explores further growth opportunities.
