Motor supplier Spartan speeds to growth
- Business: Spartan Motor Factors Ltd
- Location: Cardiff, Wales
- Sector: Motoring
- Funding: £375,000
- Turnover: £3 million
With the desire to leave a career in the RAF behind and start his own business, Jason Farrugia was on the lookout for new business ideas in 2012. He successfully partnered with Lee Gratton, who had 15 years of experience in the motor parts industry, to set up Spartan Motor Factors Ltd. Despite high barriers to entry and stiff competition, since 2012 Jason and Lee have never looked back.
Spartan Motor Factors supplies and distributes vehicle parts to motor garages in Wales and England. Having achieved rapid growth since its emergence, the business has won the Motor Factor of the Year award three times in a row (2013, 2014 and 2015) and was runner-up in the Fast Growth 50 category of Biggest Retailer in 2015.
Having established itself in Wales, employing 42 people to supply over 200 garages, the business was well primed for further expansion across the border.
To continue its planned expansion into England from its central supply hub in Cardiff, the business turned to leading independent financier, Bibby Financial Services in February 2015 for ongoing funding.
With funding in place, the business has gone from strength-to-strength. Since the start of 2016 Spartan has expanded significantly, taking its English customer base to 100 garages and is planning a further office opening this year.
Explaining the business’s decision to partner with Bibby, Jason Farrugia, Managing Director of Spartan Motor Factors said: “In our business stock is key. Customers can’t afford to wait for parts when they need them, so we need to have adequate supplies of stock and the ability to transport it quickly to where it’s needed.
“The nature of our business means that we frequently have significant upfront costs to pay so our cashflow can’t keep up with our expanding distribution network. This is the reason we decided to partner with BFS. The team at BFS understand our business model and the cashflow funding they provide enables us to take-on more orders and service more customers, which is fantastic.”
Spartan’s growth trajectory is reflected across the business community in Wales. BFS’s SME Confidence Tracker for Q1 2016 found that over two-thirds (70%) of Welsh businesses intend to invest in their business in the months ahead, with existing staff, machinery and equipment the key focus areas for planned investment.
Javairya Raja, Corporate Relationship Manager, Bibby Financial Services commented: “We have an open and transparent relationship with Spartan, which enables us to work well together – for example, we secured a leasing deal so they could purchase shelving for their new branch. Businesses like Spartan need a flexible approach to funding that can adapt to their needs and anticipate their growth.”
Jason added: “BFS’ approach to working with us is both personal and flexible. They understand that all businesses are different and have worked hard to get to know our business.
“The funding and expertise they provide has enabled us to take our business to the next level and we look forward to sharing our future growth plans with them.”