HI TEC POWDER COATING

I started my original workshop in 2005, after nearly 19 years in steel work. As time progressed I became increasingly aware that there was a gap in the market for good powder coating and shot blasting, as it was difficult to outsource these services for my steel workshop. I initially purchased a small powder coating company on the estate where my main workshop is based, and set about revamping it to accommodate shot blasting as well, with a view to ensuring that we’d be able to provide all sorts of peripheral services for steel working. Fast forward to now, and not only do we provide in-house services to the steel workshop, but we also provide our services externally to an increasing clientele.

The business we bought out to make room for Hi Tec Powder Coating was failing, and in just five short years we’ve managed to turn it into a profitable enterprise. We’re projecting roughly 30% growth this year, especially if we can secure full funding from Crowd2Fund and their investors. Steel is still a popular and necessary construction material, and the services we provide allow for refurbishment of old steel as well as treating and preparing new steel. Scrap helps nobody, and with rising concern for the environment, it’s important to reuse what we can.

Based in Southend, we’re aiming to be a top provider of peripheral services for steel working, as well as steel via our steel workshop, for as much of Southeast England as we can. We’ve recently completed a number of projects, including a number of restaurants across London. Most of our work is provided for construction projects, though we also contribute to the motor industry. We’re a one-stop shop for most steel work needs, and with Crowd2Fund we’ll refine ourselves further.

Credit commentary:
The director Marcus Alexander Mursell and Britani Mursell are providing a personal guarantee, which means should the business fail and have insufficient assets within the business to repay the loan, we can look to the guarantor(s) to repay any shortfall on repayment. There have been no CCJs for the business or director. The Equifax score and grade, which we use to assess risk, are based on the 2023 accounts. The audited financial statements, prepared by a reputable accounting firm, confirm the accuracy of the numbers. We have performed our assessment on recent financial information, including recent management accounts, which were not available to Equifax. Hi-Tec Powder’s financial performance presents a mixed picture. The company’s EBITDA is reported at £11K, while its MI stands at £18K, reflecting its modest earnings before interest, taxes, depreciation, and amortization. A notable concern is the 11% decrease in turnover from 2022 to 2023, indicating a potential decline in sales or operational efficiency. Despite this, the tangible net worth has increased to £25K in 2023, suggesting an improvement in the company’s overall value, supported by its physical assets that can be leveraged for borrowing facilities. Furthermore, the net cash from financing activities is low at £372, implying limited additional funding from external sources. However, the bank statements from recent months indicate a low but consistently positive cash flow, with an April end balance of £5K, serving as a mitigant for the credit decision. The company’s net gearing ratio of 14% indicates moderate financial risk, and the high creditor days ratio of 107 days points to potential liquidity issues in meeting short-term liabilities.

Inflation comments:
The business has stated that gas prices have increased over the last 2 years, but it now appears to have stabilized and is expected to remain steady.