A Hampshire company producing a lightweight alternative to steel for the aerospace industry is soaring to new heights thanks to the financial support of Clydesdale Bank.
TISICS, of Farnborough, produces a lightweight titanium composite for use in aircraft, space technology and alternative energy equipment. Customers include the European Space Agency (ESA) and Rolls-Royce.
With the support of Clydesdale Bank, the company has taken on five new staff, including two apprentices, and has freed up the working capital needed to invest in new machine tools.
“The technology arrived in the UK in the late 1980s with the rights owned by BP,” said TISICS Managing Director Stephen Kyle-Henney. “The rights were transferred to QinetiQ, the government defence research agency, before we staged a Management-Buy-Out six years ago and formed TISICS. We own the technology and intellectual property.
“Last year we changed our business strategy, moving away from research to more product focussed, and also shift from military uses to civil. We knew the big aerospace business worth £100m a year in 10 to 15 years time would still come to us, but we need to develop products to sell now whilst the aerospace products are developed and qualified.”
It was clear the company needed more working capital to help finance its plans, said Mr Kyle-Henney.
“We needed new machine tools, and we also needed cash available to allow us to jump on a plane at short notice to travel and meet potential customers. If you can’t do that, you lose them, no question,” he said.
“Our then bankers were unable to help, but we met with Clydesdale Bank who were far more understanding. They understood where we were, where we wanted to be, and find solutions around how we could get there.
“It was with their support that we took on the new staff, bringing us to a total of 14, and invested in the new tools. In turn, that has helped us attract a new order from Rolls-Royce and the potential for another from the ESA.”
John Anderson, Managing Partner of Clydesdale Bank’s Southampton FSC said TISICS was exactly the sort of business the bank’s Investing for Growth initiative had been designed to help. The initiative has helped Clydesdale Bank meet its target of £10 billion of new lending for business and personal customers in two years to October 2011, of which £1 billion was earmarked for the South East.
“Our Investing for Growth programme offers benefits such as loan repayment holidays, interest-only repayments and extended loan and credit terms and is designed to help businesses take advantage of quality growth opportunities by providing investment finance, increasing cash flow and easing debt commitments,” he said
“At Clydesdale Bank our Business and Credit Partners have autonomy to make lending decisions. This is key when it comes to supporting growing businesses as we can help them take full advantage of business opportunities as and when they arise.
“We would be delighted to talk to any business looking to grow and seeking the right bank to help them achieve their goals.”
Clydesdale Bank’s Southampton Financial Solutions Centre can be found at Mountbatten House, Grosvenor Square, Southampton, SO15 2JU, telephone 02380 714600.