Close Brothers funds Preformed Windings growth with tailored package

Close Brothers Invoice Finance has provided a tailored funding package to support specialist manufacturer Preformed Windings as it expands its production capacity and consolidates its operations into a new advanced manufacturing facility in Sheffield.

The funding package combines invoice finance, the Government-backed Growth Guarantee Scheme (GGS) and asset finance, providing the business with additional working capital and long-term investment support.

Preformed Windings, which has more than 55 years’ experience manufacturing high-voltage bars and coils for critical generators and motors, serves customers across the global power generation, nuclear, hydro and industrial sectors.

The company had outgrown its existing premises and wanted to bring its manufacturing, testing and development operations together under one roof to improve efficiency, increase capacity and support larger, more complex projects.

To meet those requirements, Close Brothers Invoice Finance arranged an invoice finance facility to unlock cash tied up in unpaid invoices, helping to strengthen day-to-day cash flow while the business invested in its growth plans.

The funding package also incorporated the Growth Guarantee Scheme, providing additional financial flexibility, while Close Brothers Asset Finance refinanced existing equipment through a sale and hire purchase back arrangement. The structure enabled the company to release capital from its specialist machinery while continuing to use the equipment in its manufacturing operations.

The combined funding solution will support the relocation of Preformed Windings into a larger facility at Ergo Park in Sheffield.

The new site will double the company’s manufacturing footprint and increase production capacity through a new generator-bar production line, expanded high-voltage coil manufacturing and dedicated research and testing facilities.

The investment will also establish Preformed Labs, a dedicated research, development and insulation testing facility designed to strengthen the company’s technical capabilities and support future product development.

James Stevens, Chief Executive Officer of Preformed Windings, said: “This investment gives us the platform to scale a highly technical area of UK manufacturing at a time when global demand is increasing, and supply capacity is constrained. Close Brothers understood both the commercial opportunity and the operational complexity behind it and structured their support accordingly.”

Alan Horton, Regional Sales Director at Close Brothers, added:

“Preformed Windings is a highly specialised company with strong growth ambitions, and it was important to structure a solution that reflected the unique nature of the business.

“We worked closely with the management team to deliver a flexible and tailored funding package, and we’re pleased to support them with our expertise as they continue to expand their operations and capabilities.

“This deal continues our proud tradition of backing innovative businesses that are driving investment and expansion in UK manufacturing.”