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21/09/2015

Rugby World Cup stadium success shows the potential of project finance

The Rugby World Cup kicked off in England last week with an estimated record 3.9 billion viewers expected to tune in to the global sporting event. One of the venues taking centre stage will be the recently redeveloped Queen Elizabeth Olympic Stadium in East London which will host both the South Africans and the New Zealand All Blacks.

For one Caldicot-based steel construction company, the sight of a packed stadium will be a particularly proud moment as well as the culmination of three years’ hard work.  

Pro Steel Engineering (Pro Steel) has been a key member of the construction team responsible for the £200 million strengthening and remodelling of the stadium following the 2012 Olympics.

The successful completion of three contracts at the stadium has boosted Pro Steel’s annual turnover by nearly £8 million.

Pro Steel first won a contract to provide the steel bridges  within  the Queen Elizabeth Olympic Park before being asked to tender for a major project to strengthen the Olympic Stadium’s exterior. 

Established in 2012, Pro Steel faced the problem many small companies face when tendering for large contracts – a lack of working capital – and turned to Finance Wales which had recently launched the Welsh Government’s Wales Capital Growth Fund, a Fund set up to provide short-term finance to help Welsh businesses win large contracts.  

After securing a £1 million loan Pro Steel won and successfully delivered the contract to strengthen the exterior of the stadium which Director Richard Selby describes as a defining moment for the company:

“Winning the 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.”

 

Source: Daily Record

Pro Steel then went on to win a contract to install the steelwork for the stadium’s roof.

Finance Wales Investment Executive, Oliver Jenkins who structured the deal believes that Pro Steel is an excellent example of how the Wales Capital Growth Fund can provide the missing piece of the jigsaw for lots of ambitious Welsh SMEs:

“Many Welsh businesses have the expertise to win and complete major contracts, but finance can be a real stumbling block for them.  A short-term loan from the Wales Capital Growth Fund can level the playing field and enable them to bid for larger contracts if they have the right skills and experience.”

Jenkins is keen to encourage other Welsh businesses to follow the Pro Steel model:

“There are some major projects on the horizon in Wales with the Tidal Lagoon in Swansea and the electrification of the Valleys Lines which look set to provide tendering opportunities for many Welsh businesses.  With the backing of the Wales Capital Growth Fund they have a real chance of winning the contract that could transform their business.”

The Wales Capital Growth Fund can provide short-term business loans to help with cash flow, stock financing, professional services, single/one off debtor financing and performance, advance payment and warranty bonds.

To find out more on short -term finance  click here.

Read more about Pro Steel's record turnover year.


 

Watch Pro Steel Engineering's story below: