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Our clients
Elley and Piers Flook, centre and
right, presented their success story at the House of Commons event
“Access to Finance” in April 2007 (pictured with Bernie Morgan, CDFA,
Howard Francis and Mike Lewis, GDLF)
We have helped almost 50 clients in Gloucestershire to set up or expand their enterprises. Below are some examples:
The Tin Men Limited
Natural born entrepreneurs, Elley and Piers Flook made their living over
the years from various businesses ranging from a T-Shirt printing outlet
to scooter retail, to a toy shop. It was while engaged in the last of
these pursuits that a business partner ran off, leaving the Flooks with
nearly £160,000 of debt, and financially and emotionally devastated.
While the easy option would have been to declare the business bankrupt,
the couple felt it would be unethical to let their creditors down and so
resolved to settle all outstanding monies. This they eventually managed
over a period of three years by selling their house and auctioning off
remaining stock. Unfortunately, though, the result - apart from
satisfied creditors - was an appalling credit rating, which hindered the Flooks in launching their new business ideas. Working from a chicken
shed, Elley and Piers had already developed a colour-changing, bionic,
bouncing putty which they knew had massive potential worldwide. But they
were unable to raise any commercial interest in their enterprise and,
due to their poor credit record, had requests for finance turned down by
all the major banks. They approached GDLF who, impressed by their
honesty, commitment and business plan agreed a £9,500 loan to be repaid
over a period of five years. The loan allowed Elley and Piers to lease a
machine essential to the presentation of their product - enabling them
to secure a contract with 20th Century Fox for the worldwide licence to
distribute the putty under ‘The Simpsons’ branding. Over several months,
GDLF also offered business advice, examining their financial projections
and strategies, and assisting them to revise their plans where
necessary. This process helped to rebuild the Flooks’ confidence in
their entrepreneurial abilities. Now, investors are falling over each
other to take equity in the Flooks’ company. The Tin Men Ltd is already
exporting to the USA and is also marketing the putty as an educational
tool, as well as looking at possibilities of using it to aid medical
rehabilitation. With ‘The Simpsons Movie’ launched in summer 2007, and
markets in Australia and New Zealand itching to get their hands on
Bionic Putty, it looks as if GDLF have helped their business become a
genuinely global success.
Piers & Elley Flook, Prestbury, Cheltenham
www.thetinmen.co.uk
Off the Rails Catering Limited Case Study
- Off the Rails - Kemble Railway Station
platform
- The Goods Shed - Stroud Railway Station
platform
- Off The Rails Catering - Evesham Railway
Station platform
Nick Clarke’s background was in hotel management
in South Africa and the UK; Deirdre Keyes’s was in personnel & Finance
in Ireland, UAE & UK. In 1997 they decided to combine their joint
experience into running pubs, starting out in Somerset and later the
Crown Inn in Tetbury, whilst bringing up their three young children.
The pub business was very successful, until their eldest son was
diagnosed with Leukaemia and, quite understandably, they dropped
everything to be with him in hospital. It was a full year before he
was out of danger, and during this time the pub business really
suffered while they spent time by his side. They needed to rebuild
trade from a very low position and they had only just begun setting
about this
 when the Foot and Mouth outbreak hit - when the official
message was ‘stay out of the countryside’! As a result, many country
pubs really suffered; theirs eventually failed. They were keen not to
do nothing at all, so they turned their full attention to alternative
projects. As a start, they persuaded Wessex Trains to let Nick set up
a station catering operation, which they called Off the Rails, on the
railway platform at Kemble Railway Station in March 2004. Having
borrowed funding from family and with six months of successful trading
under their belt, they were approached by Wessex Trains, who were so
impressed with the Kemble project they asked them to do something
similar in Stroud. However, given their recent background, the banks
were unable at this stage to assist with the expansion. With the
support from the GDLF Business Advisor they wrote a business plan and
prepared forecasts that showed that there were significant economies
of scale in running two units as opposed to one; and GDLF agreed a
loan to enable Deirdre to set up on a sole trader basis. This became
The Goods Shed, on the platform at Stroud Railway Station. Having had
to produce a bank decline in order to apply initially to GDLF, they
were so successful that the Bank now agreed traditional funding to
amalgamate both the businesses into a new limited company, Off the
Rails Catering Limited, and to set up to run another outlet on Evesham
Railway station. This has enabled them to repay GDLF in full for the
initial loan. Once business was good, Nick was able to take the time
out to participate in a charity bike ride from Kemble to Cape Town in
2006; and he was the only CDFI funding recipient throughout the UK
invited to present his story at the CDFA’s annual conference in 2007.
(Pictured on left).
Nick Clarke and Deirdre Keyes
Prima Medical Limited Case Study
Prima Medical commenced business in August 2003. The company’s
objectives were to work within defined niche product markets,
designing, developing and producing for international sale, medical
devices for use in the Operating Room. The purchase of a failed small
innovative design company enabled Gerard Brooke to start a new
Business in Prima Medical Limited. Prima was quick to establish a
reputation as specialists in the design of innovative products now
used by surgeons in operating Theatres the world over. The company
secured, in its infancy, significant interest, supported by orders
from 250 hospitals in the UK (nearly half of all UK hospitals) and
distributors in 32 countries worldwide. However, even though the
business showed a profit over the first six months, the banks were
unwilling to fund the new company because of an insufficient track
record. There was in addition an adverse credit history associated
with the failed company – added to which, Prima operated from the same
registered address. Finally, Gerard approached GDLF, who agreed first
one and then a second loan totalling £20,000. This injection of
working capital freed the company to develop further innovative
medical products. Over the past four years, turnover has been growing
at an average of 30%pa. The company employs nine people locally, and
sells into 42 countries worldwide. The banks are once more happy with
Prima’s progress and the two GDLF loans will soon be fully repaid.
Gerard says that none of this would have been possible without GDLF
lending enough cash to increase turnover and production at a time when
the banks couldn’t help, and he fully supports the work of the fund
working with businesses throughout the county.
Gerard Brooke, Bath Road, Stroud
www.prima-medical.com |
