Based in Waterlooville, Hampshire, Spirit Circuits designs and manufactures PCBs in the UK for products in the fire and security controls, LED lighting and electronic vehicle markets. With the help of the new funding, the business has set its sights on an ambitious growth strategy, targeting 20% year-on-year growth by 2019. Securing a £4.1 million funding line with Bibby Financial Services (BFS), Spirit Circuits was able to access the Trade Finance it needed, as well as Invoice Finance and Foreign Exchange facilities.
To keep up with the pace of growth in the UK, BFS was able to offer an increased funding line that will help support the business as it enhances its capabilities with the support of its state-of-the-art manufacturing operations.
In addition to working with suppliers in China, the business has now opened manufacturing facilities in Romania, which allows it to deliver medium sized volumes rapidly across Europe within 48 hours of manufacturing.
Following the EU Referendum vote, Spirit Circuits has seen the cost of importing raw materials increase by up to 20%, resulting in some initial losses. In China, the business buys in U.S. dollars and then sells in GB Pounds and Euros, while 30% of its sales are exports to markets including Europe, South Africa and the USA. Now with access to an FX facility, Spirit Circuits is able to manage its exposure to currency volatility and reduce the impact on the business.
As a result of the new Trade Finance funding line, the business has been able to change its approach to its operations as Steve Driver, Group CEO, describes:
“The Trade Finance line has been crucial to our business and future growth. The new funding line allows us to pay our suppliers in China upfront and gives us the flexibility to order large quantities of goods.
Being able to combine Trade Finance and FX facilities with a leading provider like BFS is a huge advantage to us, enabling us to both access working capital to fund the entire trade cycle, whilst also managing currency exchange risk."