5.5 C
Lancashire
Thursday, October 10, 2024

Rosebud loan puts car firm in the driving seat

Hand-made classic sports car manufacturer Mirage Automotive Developments is in pole position to drive global sales, thanks to a £25,000 loan from Lancashire County Council’s Rosebud Micro fund.

The loan has strengthened the Lancashire-based business’ cash flow position, enabling managing director Matthew Potts to accelerate production of the left-hand drive (LHD) variant of the Mirage GT model for overseas markets.

Mirage Automotive Developments is a new car manufacturer offering modern engineered vehicles with early 60s classical looks and features. The business was formed in 2016, although the initial idea, design, prototyping and manufacture of ‘car number one’ had been ongoing since 2009.

The business currently manufactures one model, the Mirage GT. Every car is hand-made in the firm’s Westby factory and – for a limited time – vehicles can also be purchased in component form for self-assembly.

The company is currently making car number seven. It has capacity to produce between six and ten vehicles a year but is looking to expand its premises and workforce to meet rising demand.

Matthew said: “As orders for more vehicles were being taken, it was obvious there would be some early cash flow problems due to the nature of the supply chain and suppliers’ terms. Some form of cash flow relief was needed, and various options were available.

“Not wanting to raise money in exchange for equity in the company, a short-term cash flow loan was the most appropriate solution. We came across Rosebud having found information on the internet about local authority backed schemes. After an initial discussion with Access to Finance adviser Jonathan Nelson, this seemed like the right path for us.”

Matthew then met Sue Roberts from the Rosebud team, who structured the loan. After signing the final paperwork, the funds were available in less than a week.

Rosebud is delivered in association with Boost; Lancashire’s Business Growth Hub. Led by the Lancashire LEP (Local Enterprise Partnership) and Lancashire County Council, Boost is supported by funding from the European Regional Development Fund (ERDF).

Matthew continued: “The loan has certainly helped with cash flow. It’s given us the flexibility to renegotiate terms and contracts with some of our bigger suppliers to alleviate future cash flow restrictions.

“As a result we have been able to get the early vehicles manufactured on time, which has allowed us to accelerate our LHD product variant. Because of this, we have been able to bring the launch of our LHD GT forward to November 2018 and start taking orders for LHD vehicles as we start to grow the business.”

As Matthew and his team move into 2019, he expects turnover to rise significantly as sales for RHD and LHD vehicles increase. At present, the business has more than 20 customers who have expressed strong interest in purchasing LHD vehicles worldwide.

Matthew added: “The support from Rosebud has been excellent. From the very beginning of the process and the initial discussions, to the engagement with the Rosebud team and the contacts they have introduced us to.

“Not only has the loan money provided cash flow relief and allowed us to accelerate our product range, but it’s been the help we needed to allow the business to grow and expand our sales and brand globally.”

County councillor Michael Green, cabinet member for economic development, environment and planning, said: “Smaller manufacturing companies have great growth potential and we’re always proud to hear of success stories where Rosebud’s involvement has helped to kickstart the company on their next growth stage.

“It’s also great to hear that companies are growing and creating new jobs for local people, which brings wider economic benefits.

“Rosebud Micro is part of Boost, Lancashire’s business growth hub, which offers many different ways to help companies to find the support for their growth and ambitions that works for them. We would encourage Boost to be part of your Growth Conversation.”

Boost Business Lancashire has received £3.8m of funding from the England European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for ERDF. Established by the European Union ERDF funds help local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations.

spot_imgspot_img

Latest

StanfordMarket.com Review Unlocking Referral Rewards and Community

In this StanfordMarket.com review, we explore the platform’s generous...

PersonalisedChampagne.com Introduces Customisable Luxury Gifts for the UK Market

PersonalisedChampagne.com has launched, offering UK consumers the ability to...

Epcy Links UK Patients to Leading Clinics in Turkey

Epcy, a leading platform for healthcare tourism, is now...

Miracle Cash & More Introduces Innovative Liquidity Pool on Avalanche Blockchain

The Phoenic Leveller platform offers the first-ever leveraged liquidity...
spot_img

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

New event set to inspire and inform the Bolton business community

Oxford Innovation has launched a free event for startup...

Innovative Korean Agro-Food Products to Be Showcased at SIAL Paris 2024

The Korea Agro-Fisheries & Food Trade Corporation invites global...

Miracle Cash & More Introduces Innovative Liquidity Pool on Avalanche Blockchain

The Phoenic Leveller platform offers the first-ever leveraged liquidity...

How to safely dispose of hazardous waste

Disposing of hazardous waste is a critical responsibility that...

More News

New chief fire officer appointed for Lancashire

Jon Charters has been appointed as Lancashire Fire and Rescue Service’s next chief fire officer. Taking the step up from assistant chief fire officer, Jon...

One in three stores fail undercover sales stings in Lancashire

Almost one in three shops illegally sold vapes to underage volunteers in undercover stings carried out in Lancashire. Lancashire County Council's Trading Standards team joined...

Lancashire Fire and Rescue Service’s Business Fire Safety Campaign kicks off

Lancashire Fire and Rescue Service has launched a new Business Fire Safety campaign which runs until September 29. It aims to raise awareness among small...