ATAG secures funds to seize opportunity

ATAG secures funds to seize opportunity

A cable manufacturer based in County Durham is expanding, after a new investment allowed them to turn a threat to the company into an opportunity.

ATAG Cable Solutions designs, manufactures, tests and supplies a wide range of high quality, high performance reliable cables for all types of industries.

In March last year, the firm found itself facing a significant bad debt after a key customer in Cumbria went into administration.

It seized the chance to alter its business model by buying some of its customer's assets and expanding its service offering to include cable assembly and temperature controls.

Key staff were retained, and ATAG has fulfilled the customer's existing contracts.

The firm has now worked with regional fund management firm NEL Fund Managers to bring in a second six figure Growth Fund investment, which it will use to help create up to eight new jobs.

Lead by managing director Andy Graham, ATAG Cable Solutions now employs 15 people and manufactures all its high quality cables in the UK to meet the colour, size and finish requirements specified by individual clients.

David Hazeldine, operations director at ATAG, said: “Losing a key customer with little warning presented a real problem, but we saw the opportunity as well as the threat and moved quickly to take advantage of it.

"Being able to offer both custom cable manufacture and custom cable assemblies has substantially increased the range of projects we're able to take on, and we think there's the potential to grow the company's revenues by around a third this year as a result.

"We've made a lot of progress since bringing in the first NEL investment and we think there's still a lot for us to achieve both in domestic and overseas markets.”

David Thomas, investment executive at NEL Fund Managers, added: “The ATAG team's ambition, vision and determination is extremely admirable, and we're very pleased to be part of the company's continuing evolution."