GSE Group is a civil engineering and plant hire construction firm. Founder Darrell Healey was experiencing the typical challenges that businesses in this sector face on a daily basis. Like all businesses in the construction supply chain the work is all paid for on monthly valuations. Because it is not straightforward debt it was difficult to get high street banks to lend to them.
Initially Healey approached Nucleus, wanting to repay the group’s existing overdraft facility in order to generate some working capital. GSE looked at a couple of providers but as specialists in the sector, Nucleus understood the business model and daily operations. They came up with a solution that solved all of the problems that GSE were facing.
The funding was split between the group’s civil engineering and plant hire divisions. Because we do a lot of our business in the construction sector we understand the contractual nature of the debt and the unique payment system. This is where banks and other alternative funding providers struggle. After a site visit, our survey team ensured we properly understood the groundwork GSE was undertaking and enabled us to fund the business appropriately. Our dedicated team of in-house quantity surveyors worked in partnership with the client to quickly provide a £1,800,000 specialist construction application finance facility.
Another part of the group was their plant hire business, GSE Plant Ltd, who hire out diggers and construction plants to other GSE divisions and external customers.
Healey viewed the funding as a landmark for the business. In addition to the Construction Finance facility, by using GSE’s plant and machinery as security, Nucleus was able to provide an additional asset finance facility to the business. A £1.2m asset finance package was agreed enabling GSE to replace and upgrade existing plant hire machinery and increase the number of vehicles available to customers – ultimately they have been able to expand the business and grow profits faster.
GSE’s are now in a position where they have repaid their loan, a real indicator of their success and a reflection of the commitment of the Nucleus team to find solutions that will benefit the businesses they work with whatever their needs happen to be. Whether it is to help them to get to the next level, turnaround in a challenging scenario or smooth cash flow. Darren Healey of GSE said “It just wouldn’t have been possible with the bank.”
The GSE story shows in practice how a combination of smart, tailored Nucleus products can provide the right financial fit for a business and help them go from strength to strength.
...was simply more flexible than the other companies we were talking to... It just wouldn’t have been possible with the bank...