The Ludlow Nut Company grows from grant
A Ludlow company has gone from strength to strength since being awarded a grant through the Shropshire and Herefordshire Business Enterprise Fund last autumn.
Last September (2012), The Ludlow Nut Company received a grant of £5,000 to aid with the largest renovation in the company’s history. A total of £16,000 was invested in acquiring and converting the adjoining premises into a fully furnished and modern kitchen for production. Nearly six months after its completion, owners Helen and Robert Graham explained the impact that the grant, and the renovation, have made.
Robert said:
“It’s a little manic here at the moment. Since the works completion we’ve been able to gain a number of contracts to supply the food service industry and are currently in advanced negotiations for several more.”
While they had a kitchen before the works, Robert highlighted that its offsite location was increasingly becoming an issue for them.
“Although the kitchen was only a few miles away it presented us with a number of difficulties. There wasn’t sufficient climate-controlled storage space available in the kitchen, so it was often the case that we had to ferry ingredients from our warehouse to the kitchen. This not only used staff time but also interfered with both site’s production.”
The opportunity to convert an adjacent space into an onsite kitchen presented Helen and Robert with the chance to improve their business and lower costs simultaneously. Yet, because the project needed to be done quickly, they needed an injection of instant capital to allow it to proceed.
Robert said:
“Without the grant funding it probably wouldn’t have happened. In the 10 years we’ve been trading we’ve always grown our business from within the finances it generated. The result has been a gradual, but sustained, expansion. However on this occasion, due to the scale of the work and the cost, we needed to complete the work and begin producing and generating income in a very short space of time. This could only have happened if a grant was available to us.”
Administered by Shropshire Council, the Shropshire and Herefordshire Business Enterprise Fund provides capital grants of up to £5,000 (£1,500 for start-ups) and is open to any business operating within Shropshire or Herefordshire on a business-to-business or tourism model.
The fund is designed to assist individuals start businesses, and encourage existing businesses to invest in projects that will result in increased profitability through efficiency savings or expansion and product diversification into existing and new markets. In the case of the Ludlow Nut Company, however, the speed with which the funds were granted was just as important as the money itself.
Helen said:
“We found out the adjacent unit was becoming available in mid-August. We contacted Shropshire Council about the business grants and the business and enterprise teams assisted us with the application process. This meant we were able to start the renovations in September, and by mid-October the work was complete and the grant had been paid.”
With the help of the council’s business and enterprise teams, Helen and Robert were able to apply for and receive the grant quickly, which in turn enabled the project to go from conception to completion in just two months. The new contracts and improved efficiency has resulted a 23% increase in annual sales for 2012/13 compared to the previous year, with a 60% increase in sales for March 2013 compared to figures for March 2012; this comes as a direct result of the improvements. These figures have been particularly pleasing for Helen and Robert, especially given the current trading conditions.
Mark Pembleton, Shropshire Council’s business and enterprise manager, said:
“It’s brilliant to see that Helen and Roger have enjoyed such success since receiving their BEF grant last year, and that the council was able to play a small part in this success by helping to secure the grant. I hope the company continues to go from strength to strength in the future.”
The new kitchen was recently inspected by Shropshire Council’s environmental health officers and awarded a maximum five star food hygiene rating. It seems that the funding has really helped this local business continue its growth from the humble beginnings in the Graham’s basement and secure its future, even in these difficult times.
