16/03/2015

Newport steel specialist eyes up record turnover after Olympic boost

A Newport-based steel specialist which was the first company to take advantage of an investment from the Wales Capital Growth Fund is on course for a record third year which will see its turnover rise by £8 million to almost £12 million.

Pro Steel Engineering (Pro Steel), which specialises in project management and construction services, secured £1 million in short term-finance from Finance Wales last year.  It used the funding to support cash flow on a high profile contract as part of the £200 million strengthening and remodelling work for London’s Queen Elizabeth Olympic Park.

Having successfully delivered on the project the company subsequently won the contract to install the stadium roof steelwork ahead of the 2015 Rugby World Cup in September. Five tournament matches will be played at the stadium reaching a potential TV audience of over 3.9 billion. 

Managing Director, Richard Selby started Pro Steel with his business partner Justin Marriot in 2012 and its reputation has grown significantly thanks to its involvement with the Olympic Park project.  He said:

“Winning the initial work on the stadium has been a real game changer for us.  It gave us a platform to show our expertise and things have really snowballed from there onwards.  We have always known we had the capability and experience to deliver but at that time cash flow was a stumbling block for us in terms of managing so many subcontractors.

“The short-term finance we accessed through Finance Wales fitted what we’re looking for exactly and we are now in a very strong position in terms of major infrastructure projects in the pipeline.”

The Wales Capital Growth Fund was created to meet the demand from Welsh SMEs for short-term working capital and performance bond requirements.

Congratulating Pro Steel on its success, Economy Minister, Edwina Hart said: “I’m pleased that Finance Wales’ first investment from the Wales Capital Growth Fund has helped Pro Steel to win and fulfil such a high profile contract.  Pro Steel is an excellent example of a Welsh business flying the flag for Wales and its continued success is a boost for the Welsh economy as well as an inspiration to other Welsh SMEs.”

Finance Wales Investment Executive, Oliver Jenkins made the investment in Pro Steel, he said:  “Winning this contract has been a significant boost for Pro Steel as well as the Welsh economy.  Much of the work on the project was completed in Wales either by Pro Steel or its network of highly skilled and specialised subcontractors.

“The team at Pro Steel has demonstrated that they have the expertise and capability to undertake significant new contracts successfully and the Wales Capital Growth Fund investment has provided them with the financial backing they needed.  We wish them even greater success in the future.”

Loans from the Wales Capital Growth Fund can be used for a range of short-term funding needs often associated with larger contracts. This can include one-off debtor finance, stock purchases and project finance as well as to provide security for advanced-payment, performance and warranty bonds.