“Lifeblood” cashflow helps Irish SME through change
Small business forecasts 25% year on year growth for 2016
- Business: Total Pipeline Specialists
Location: Dublin, Ireland
Funding line: £2.25 million
Turnover: £10 million
Product: Invoice Discounting
Total Pipeline Specialists, Ireland’s leading independent distributor of engineering materials and solutions to the multi-utility, infrastructure and construction sectors is set for strong growth in 2016. To drive this growth, the business is investing in its depot network, fleet and IT systems, with plans to increase marketing spend in 2017 and beyond. The small business also has many new and innovative product lines in development to take to the market.
Things were not always so rosy for the distributor of pipes, valves and fittings though. The business was formerly owned by a parent company which went into administration in 2012. For over a year Total Pipeline Specialists, a leading business within the group, continued to trade under the leadership of Keith Herbert and Barry Vize, with the support of the Administrator.
In December 2013, with signs of a return to life in the Irish economy, the time was right for Keith Herbert and Barry Vize, Directors, at Total Pipeline Specialists and their team to undertake a management buy-out (MBO). To keep the business alive and come out the other side of the MBO, the business needed to ensure that it had steady and reliable cashflow in place.
Keith Herbert, Director at Total Pipeline, said: “Cash is king – and never is this truer than in an MBO. Facing the usual growing pains, it was essential for us to have that lifeblood of cashflow in our early years, driving confidence to grow our business.”
It was at this point that the business, assisted by the Administrator, sought the help of Bibby Financial Services to provide the much needed cashflow.
Herbert continued: “The strength of support throughout this change made BFS the first choice for us. The team at BFS set themselves apart by taking the time to understand our industry and where the future of our business was going.
“A typical example of this was increasing our funding line six months into our first agreement to support the rapid growth of the business.
“Now we are in a strong position to further grow our branch network, with a clear mission to be the number one choice and partner in our sector in Ireland.”
Siouxsie Millard, Relationship Management at Bibby Financial Services, said: “Total Pipeline Specialists has a strong history in Ireland, having operated for over 50 years in the Republic and in Northern Ireland. Despite the administration of the previous parent company, the business has shown great resistance and is now well placed to capitalise on an Irish economy that is stirring back into life.
“We are proud to have successfully transitioned this business through its management buyout, preserving another great Irish business as it continues on its growth trajectory.”