Ashgarth Engineering, a start-up which manufactures precision-machined engineering parts, has secured a six-figure loan from HSBC UK to purchase new machinery and accelerate its growth.
With the funding in place, Ashgarth has been able to secure a grant through the European Agricultural Fund for Rural Development, following submission of its ‘growth project’.
It has enabled the business to invest in two new, state of the art, CNC machining centres that it needs to fulfil larger, high-volume orders from customers across the UK.
Ashgarth, based in Consett, County Durham, can now expand its capability and diversify, resulting in an expected 40% increase in turnover over the next three years. The investment has also enabled the business to hire a skilled machine operator this year, with another to be recruited next year.
Niall Ash, co-founder of Ashgarth Engineering, said: “We always planned to grow the business through the purchase of new machinery but the financial support we’ve received means we can do this quicker than anticipated. The rural development fund and HSBC’s backing means we can start quoting for new work that we previously couldn’t. As a new business, we’re grateful for HSBC’s expert advice and confidence in our business plan.”
David Slane, area director for HSBC UK in North East England, said: “We take pride in supporting new start-ups and entrepreneurs in the North East. Ashgarth has a solid business plan with realistic ambitions for growth and we are delighted to be able to help accelerate its expansion plans through our funding.”
Ashgarth was founded in July 2017 by Niall and co-founder and director Paul Westgarth. Its customers span several different industry sectors including oil and gas, sub-contract engineering, agriculture and consumer goods.
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