EFG helps Wombourne road surfacing company gain large contract

EFG helps Wombourne road surfacing company gain large contract

Wombourne based road construction and repair contractors Freeway Surfacing Limited have successfully tendered for their largest ever contract after obtaining financial support from NatWest, Lombard and the Government backed Enterprise Guarantee Scheme ('EFG').

Freeway Surfacing Limited – which was established in 1984 – is a successful company based on Bridgnorth Road in Wombourne, who provide a comprehensive, professional service in the construction of carriageways, driveways, car parks and sports surfaces. They provide employment for more than 50 people.

As many of the work force at Freeway Surfacing Limited have been with the company for 27 years, the business has an experienced skill base and knowledge second to none. This has allowed them to attract significant contracts including most recently one from Amey LG Limited for Carriageway Repairs, as part of their 25 year Birmingham Highway Maintenance and PFI Contract, awarded to them by Birmingham City Council, representing the largest single contract ever placed by an autonomous authority, valued at £2.9 billion.

To ensure Freeway Surfacing Limited were not only skilled and experienced enough to take on the new contact, but also financially strong, the directors approached NatWest Commercial banking, who tailored a financial facility which included EFG support. Additional support was obtained through Lombard who supported the business by raising additional finance against existing company assets.

The Government-backed EFG Scheme aims to ensure that businesses - such as Freeway Surfacing Limited - have the necessary working capital or investment finance in place to help them through the difficult economic climate. Under the scheme the government will guarantee 75% of any loans made.

Mike Jordan, Managing Director of Freeway Surfacing Limited, said: ‘This contract with Amey LG Limited is really exciting for not only the Company, but also for our long serving team. We have shown over 27 years of working in the construction of carriageways, driveways, car parks or sports surfaces that we have a real passion for the quality of our work and this, together with our experience, was fundamental in obtaining this important contract. Whilst we clearly have the ability to successfully complete the contract, we needed to have a good bank behind us, and it was great to have NatWest, Lombard and the EFG on board.'

The financial package for the company was put in place by Mike Elphick, Senior Relationship Manager for NatWest Commercial Banking in Wolverhampton and Paul Willetts Senior Relationship Manager from Lombard.

Mike Elphick said: "Gaining this contract with Amey LG Limited is fantastic news for Freeway Surfacing Limited. When I was approached by Mike Jordan and asked if the bank could support the company, I worked very closely with my colleague Neil Mackay in our credit team and successfully turned around the request ensuring that the EFG process was handled smoothly and quickly. This was a great result and I am delighted NatWest together with Lombard have been able to support this successful Wombourne based business by creating a tailor made financial package using the EFG. The EFG provides important support for businesses such as this and currently NatWest and RBS have offered more than £517m, of which £477m have been drawn."

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