Arbuthnot Commercial ABL provides funding to engineering group

Arbuthnot Commercial Asset Based Lending (ACABL) has structured a tailored growth funding package for Aaron Engineering Group Ltd (AEG), providing additional working capital to support the engineering and infrastructure services group’s expansion plans.

The funding will give AEG significantly increased financial headroom, enabling the business to pursue further opportunities and take on additional infrastructure projects across the rail, security and high-voltage electrical sectors.

Founded more than 25 years ago and headquartered in Stockport, AEG provides integrated engineering services to critical infrastructure sectors across the UK, with regional offices in Yorkshire, Cumbria and Warwickshire.

The group operates through several specialist divisions, including Aaron Rail, which provides trackside personnel and engineering services to the UK rail industry, alongside Aaron Civils and Aaron Guard, its security division.

Aaron Access delivers access control solutions, CCTV, fire and security systems, and facilities management support, while Aaron HV Systems specialises in the design, installation and commissioning of high-voltage electrical infrastructure, including substations and transmission networks.

Having previously funded much of its growth internally, supported by a relatively small working capital facility, AEG sought additional financial backing to support its next phase of development.

The funding opportunity was introduced to ACABL by Lee Hayes of accountancy firm Armstrong Watson, who also advised AEG throughout the process.

John Lowndes, CEO of Aaron Engineering Group, said: “We’re a growing business and very ambitious. Until now, we had largely been self-funded with a small working capital facility, but we identified that our growth plans required additional funding support.

“Arbuthnot made the process painless. Richard Ackers came to a meeting, saw our presentation and understood our requirements straight away.

“Having Arbuthnot on board as our funding partner gives us strong backing to push forward with growth.”

Richard Ackers, Director, Business Development (North East) at Arbuthnot Commercial Asset Based Lending, said the new facilities would provide AEG with the flexibility to pursue its growth ambitions.

“We are delighted to provide this comprehensive funding package for Aaron Engineering Group, and it’s a pleasure to work with John and his highly experienced team.

“The team is very ambitious, and the new facilities we have structured give them significantly greater headroom to support growth, enabling them to take on further infrastructure projects across rail, security and high voltage sectors.”