Press releases – October 2009

Cambridge, October 2009 - Cambridge based manufacturing company C4 Carbides Ltd have selected The Royal Bank of Scotland ("RBS") as their new banking partners following the negotiation of a funding package to support the continued growth of the company.

Established by founders Peter Nicholson and Paul Duggan almost 25 years ago the company is now the world's largest manufacturer of diamond grit and tungsten carbide grit (two of the toughest and hardest materials) industrial saw blades and power tool accessories. The company supplies their products to most of the market leaders in the cutting tool industry and their saw blades and power tool accessories have the ability to cut and shape a variety of very hard, brittle, snaggy and abrasive materials.

The company has grown its turnover steadily over the last few years expecting this year to exceed £4million, selling both in the UK and abroad. As such the directors of the company were looking for new banking partners to help them with their next phase of growth of the company as they seek to find new revenue streams and markets for the company's products to operate within.

RBS Business & Commercial Banking and RBS Invoice Finance in Cambridge have been in dialogue with the company for the last three years and have used this understanding of the business to put in place a bespoke funding package to support their operational needs including providing funding against debtors to help maximise the cash flow of the company. Paul Marks, Senior Manager, Business & Commercial Banking will provide the company with relationship management support moving forward.

Commenting on their new banking relationship with RBS and prospects in the market place moving forward, Kevin Ball Managing Director of C4 Carbides Ltd said:

"We have managed to grow our business over the last two years in spite of the change in economic conditions. Despite pressures on margins we have managed to increase our revenues and profitability and the company is now in a healthy position. We felt it was right to look forward and find a banking partner that was willing to support our vision for the future and particularly our export growth. We are a UK manufacturer with over 90% of our business being exported across over 20 major international markets and with a market leading differential in the quality of product we produce and supply we are investing today to help us push our sales event further and wider, creating new income streams for the business. RBS expressed huge enthusiasm to support our growth plans and our export profile and we are very pleased to have the opportunity to have them as part of our team."

Henry Audley-Charles, Business Development Manager at RBS Invoice Finance who helped structured the new funding package added:

"An established reputation amongst the leading suppliers in the cutting tool industry has helped the business establish itself and brand over the years. The management team are keen to capitalise on this position and have a clear strategic plan which they are looking to implement over the next few years. Our funding package has been designed to ensure it is flexible to meet the needs of the business both today and in the future."