Haulage firm secures £3.7m multi-asset facility to support growth

Clugston Distribution Services, a long-established transport and tanker services provider in Scunthorpe, has secured a £3.7 million asset-based lending facility from Ultimate Finance, designed to increase working-capital headroom and support its renewed growth trajectory.

Founded in 1922, Clugston is one of the region’s largest employers, second only to British Steel, for which it provides key logistics services. The business specialises in steel, fuel, bulk food and industrial powders, and operates a vehicle maintenance workshop alongside a Renault franchise testing facility approved by the Driver and Vehicle Standards Agency.

The company has faced a period of trading headwinds in recent years, prompting a focus on stabilisation and restructuring. With trading performance improving and new sales momentum emerging, the firm sought additional flexibility to pursue and service new contracts.

Consultant Wendy Shaw of Shaw Consulting (East Midlands) Ltd supported the business through the process and introduced it to Ultimate Finance’s regional director, Steve Armstrong. The lender structured a package combining invoice finance and asset finance, allowing Clugston to draw funding against both receivables and physical assets under a single facility.

The multi-asset structure is intended to increase day-to-day liquidity while simplifying oversight with a single relationship manager. The approach, Ultimate Finance said, was shaped jointly with its underwriting team to reflect the specific characteristics of Clugston’s operations and sector.

Shaw said the funding was designed to stabilise the business while giving it room to plan. “Clugston has a strong core business and an important role in the regional economy,” she said. “Ultimate Finance engaged early, listened, and, through their deal team’s joined-up approach, built a pragmatic structure that supports both today and tomorrow”.

Ultimate Finance’s Steve Armstrong described the solution as reflective of the firm’s history and local importance.

He said supporting a business of Clugston’s scale and heritage “was a privilege”, adding that the facility is intended to help the company recover momentum after a difficult period.

Chief executive Alistair Clugston said: “The comprehensive due diligence conducted by the team at Ultimate Finance and their support have significantly bolstered our company’s position. Their meticulous approach and insights have not only validated our current operations but have also paved the way for a robust foundation for future growth.”

He said the business is now preparing for refinancing and exploring both organic expansion and potential acquisitions.