Bluechipworld set to double turnover

Bluechipworld Sales and Marketing (BCW) aims to almost double its £7 million turnover thanks to a new trade finance agreement from specialist funding provider, Bibby Financial Services (BFS).

Bluechipworld was formed in May 2009 and began importing mobile device accessories from the Far East for sale to UK customers. Products manufactured by BCW include all manner of items designed to augment the ubiquitous smartphone or tablet and include charging solutions, Bluetooth headsets, cases and other forms of protection as well as a comprehensive range of headphones.

Five years on, the business manufactures a wide range of products in China and supplies UK retailers such as Tesco, Sainsbury's, Selfridges, Argos, Amazon and Play.com.

It has grown significantly, expanding its product portfolio to include a broader range of audio products, Bluetooth in-car kits, auxiliary charging solutions and various innovative types of device holder. The products appear in-store under a variety of recognised brands including iCandy, Casu and the hugely successful MiTec range, found exclusively in Tesco.

Products are manufactured and packed in China and then shipped by air or sea to the UK utilising the expertise to be found in BCW's Hong Kong office.

Headquartered in the UK at Keys Business Village near Cannock in Staffordshire, the business has four owners, Simon Hassell, Jason Bisseker, John Barton and David Yee, with David based in the Hong Kong office. The company now employs 22 staff in the UK across finance, administration, marketing, sales and logistics.

Also included in the firm's product portfolio is the iT7 Audio brand, a range of headphones and speakers, predominantly wireless, offering modern Bluetooth technology. The brand is a joint venture with ex-Aston Villa midfielder, Ian Taylor and has attracted endorsement from entertainment and sporting stars alike.

iT7 Audio is now one of the most recognisable elements of the business with the England football squad, Ashes cricket team and a host of X-Factor celebrities – including Sam Bailey, Jade Ellis, Rough Copy and Kingsland Road – all using products the range.

While sales in 2014 are booming for BCW, it hasn't been plain sailing for the company since it started amid the economic downturn. Unlike many companies that saw sales potential fall as the financial crisis hit home, BCW's main issue was how to fund growth as it took increasing market share from the competition. Funding at either end of the order process was required. Manufacture had to be paid for as the orders came in while early realisation of sales revenue and profit was required as retailers increasingly demanded more onerous payment terms.

Simon Hassell, CEO of BCW, said: "Demand was rising for our products and we had secured distribution through key channels in the UK, but our cashflow position was proving to be a challenge as we tried to keep up with the growing order book."

It was at this stage that the business began to look at a funding source which would grow alongside this demand, and in June 2011, BCW became a customer of invoice finance provider, BFS.

Simon said: "In order to take the business to the next stage, we needed funding in place which could help us to deliver larger quantities of stock whilst still turning orders around quickly, which is when we turned to BFS."

Almost three years on, the firm has extended its finance agreement with BFS as it looks to expand into new markets, both in Europe and further afield, as well as introducing new products through existing distribution channels.

"Our products continue to go from strength-to-strength. We've recently embarked upon a rebranding exercise for the main business so that we have a modern image to sell to investors. Furthermore, in line with the re-brand we have launched our new website to help us to communicate more effectively with our customers and consumers alike, said Simon. "It's vital that we have a facility in place which allows us to access the cashflow we need to help us fulfil our expansion plans. It's for this reason that we have extended the existing facility with Bibby Financial Services, which enables us to aim for 70 per cent turnover growth over the next year, taking BCW to a £12m turnover business."

Trade finance - also known as purchase funding – enables businesses purchasing and selling goods from within, or outside the UK, to access working capital to fulfil orders. BFS makes full payment to suppliers at the point of shipping, which reduces cashflow pressure. This can be combined with invoice finance to provide further cash injection during the time a business waits for customer payment.

"Having a trade finance facility in place is a huge benefit. We work with Bibby Financial Services more as partners than supplier and customer and the team's expertise is undoubtedly a huge advantage for us", Simon added.

Mark Lindsay, managing director for Bibby Financial Services Trade Finance said: "BCW is a perfect example of a business that has leveraged the flexibility of trade finance to its advantage. It has innovative products, great brands, recognisable endorsements and influential distribution channels."