CONTRACT electronics manufacturer Surface Technology International (STI) is set to grow in 2014 after securing a £11.5million financing package from Lloyds Bank Commercial Banking.
The company, which operates from its 64,000 sq ft production facility, in Osborn Way, Hook, is aiming to grow its revenue by 15 per cent.
The agreement provides STI with a significant increase in funding compared to the facilities provided by its previous banking partner, and will support the company’s growth strategy in the commercial aerospace and defence, medical, oil and gas and industrial sectors.
Established in 1989, STI provides a full range of bespoke electronics manufacturing services including product design, PCB assembly, final assembly and testing, for clients operating in high reliability industries.
The new funding package from Lloyds includes a trade finance and letters of credit facility, which gives STI the opportunity to negotiate more favourable terms with overseas suppliers in return for earlier pay-ments.
It also includes term loan and asset finance facilities to fund future capital expenditure projects.
The funding was provided via the Funding for Lending (FLS) scheme.
With a factory in the Philippines, to serve the growing South East Asian market, STI is buoyed by strong demand from clients in the commercial aerospace, oil and gas and security sectors, and is forecasting revenues of £45m in the next financial year.
STI founder and managing director Simon Best, said: “This new funding arrangement gives us the headroom and flexibility to invest and grow our proposition.
“It is a greater level of support than we received from previous banking partners and is one of the key reasons why we moved our banking relation-ship to Lloyds Bank.
“The need for mission-critical manu-facturing capabilities in commercial and industrial markets is sustaining strong demand for our services.
“Our fully comprehensive offering, from design through to final assembly, means that we can provide a high- quality service to companies operating in these sectors.”
Stephen Ogborn, relationship director at Lloyds Bank Commercial Banking, said: “STI’s experienced management team and strong reputation for delivery in niche manufacturing sectors ideally positions the company for future growth.
“They are typical of the innovative mid-market businesses which are helping to sustain the UK’s economic revival.”