GAP operates in 67 locations across the UK and recently opened a new plant and tool depot and non mechanical depot in Tewkesbury. The £70m package from RBSIF will help GAP achieve its ambition of opening at least three to four new sites per year in order to continue the expansion of its plant and tool, non mechanical and lifting divisions. The company draws its customers from a wide range of sectors, including the rail and utilities industries and the public sector. With a turnover of £85m in the financial year ending March 2012, it is forecasting revenue to increase by 12% to £95m for the current financial year.
The family owned and run business, which employs over 1000 people, was established in 1969 by Gordon Anderson and is today run by his sons Douglas and Iain Anderson. With the third generation of the family now established within the Group, the management team at GAP has successfully developed the business despite the difficult economic climate. Owing to their strategic planning and implementation, GAP has been placed on a stronger financial footing and has grown its market share among utility and local authority clients during recent years.
Along with the three-year Asset Based Lending commitment provided by RBSIF, RBS Corporate & Institutional Banking has become the sole banking partner for GAP, providing all transactional banking requirements.
Danny O’Neil, Chairman at GAP Group said "Following a period of strong growth we carried out a wide ranging competitive tender in order to choose a banking partner. In addition to financial considerations we were looking for a partner to support us in our ambitions to continue to expand and diversify. The three year committed funding package together with our strong cash flow will be key in allowing us to grow our asset base for the benefit of our customers.
We were very impressed with the transparency and the service that RBSIF were able to provide. The RBS team also demonstrated a real desire to understand our business and we look forward to building a longstanding relationship with them. I am optimistic that GAP will continue its strong growth. The Board of GAP are very excited about our prospects."
Chris Hawes, Director of Corporate at RBS Invoice Finance added: “The Scottish ABL team have been in discussion with GAP for a number of years and we are delighted to welcome them on board. We have built a strong relationship with the management team, which has enabled us to develop a longer term understanding of the company’s strategic direction and funding requirements. This has enabled us to introduce the benefits of using ABL as a viable alternative for funding their growth plans because it provides advances against company assets. Indeed the flexibility of ABL makes it an attractive option for many corporates and we are increasingly seeing it being recognised by the corporate finance community as a core lending product.”
Alan Maudsley, Head of Corporate Development West of Scotland at RBS CIB, commented: “GAP has maintained its highly competitive standing in the UK and has performed strongly thanks to its focused management team and asset renewal process. It has one of the newest fleets within the sector, and has clear ambitions for the future. We are delighted to be able to support the expansion of a sector-leading Scottish company and will continue to work hard to enable this business to realise its ambitions.”