A Midland metal processing company that has struggled through the economic crisis is now thriving thanks to specialist support from The Royal Bank of Scotland.
Independent Slitters in Park Street, Church Bridge, Oldbury, specialises in the slitting of various types of ferrous, non-ferrous and coated metal coils, mainly for the steel stockholding industry.
In 2008 the firm launched a new business venture, Enviromise, specialising in the reclamation of metal scrap from the processing of end-of-life tyre waste.
ISL took a 50 per cent stake in the new business while RBS and Lombard provided an £800,000 funding package which involved purchasing equipment and establishing a contract worth £2.8 million over a three-year period
It soon became clear that the new, bespoke equipment was not fit for purpose and, worse, the Cheshire-based supplier Enviromise held the contract with fell into administration leaving ISL with significant liabilities.
Since that point in 2010 ISL has been supported by Global Restructuring Group, part of RBS that specialises in supporting businesses through difficult times and designed to restore them to health.
Kelly Henney, corporate director for GRG at RBS, said: “Businesses often fall into trouble through no fault of their own and for a variety of different reasons. ISL came to us with heavy losses through a venture that didn’t work out. Together we’ve worked hard to negotiate payment plans, dispose of assets and divest business. ISL, with good sales and a strong marketing campaign have now cleared the vast majority of the bad debt they held.”
ISL managing director Ian Edwards said: “Since 2010 we have continued work in close cooperation with various members of GRG’s management team to restructure our debts and dispose of the grossly overvalued assets we had acquired.
“We had various options available to us to overcome the problems we faced, but we are confident that our experienced management team working with GRG to radically restructure our operations, has provided a solution that will preserve our 23-year trading history.”
Mr Edwards and business owner Daniel Wharrad planned the business restructuring and did all the operational management with the support of GRG.