MILLTOM BUILDERS

For over 30 years, I have been deeply involved in buying and developing properties. Now, I’m focused on advancing Milltom Builders in alignment with the government’s new initiative to build 1.5 million homes in the coming years. We’re committed to developing a fresh marketing strategy and bringing in new designers to innovate and elevate our brand. Our goal is to construct sustainable homes using modern methods of construction, setting the standard for the future of housing. By combining our decades of experience with fresh perspectives from new designers and strategic marketing, we aim to create lasting communities that meet the evolving needs of homeowners and contribute to a sustainable future.

One thing I'm particularly proud of is that Milltom Builders is a family-run business, with my brothers and mum working alongside me. Together, we’re dedicated to building sustainable homes that not only serve our clients today but also contribute to a better future for generations to come. Our close-knit team brings a personal touch and a shared commitment to quality and innovation in every project we undertake.

This funding round will assist us in growing our brand and preparing to upscale in order to capitalise on the previously mentioned government house-building initiative. The development of a dedicated website is one of the core components of this, and among other things it will serve as a place to publish the drone footage we’ve captured of some of our previous projects.

Credit Commentary:
The director Garry Flitcroft is 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 company’s financial accounts, prepared by a reputable accounting firm, confirm the accuracy of the presented figures. The company’s EBITDA has significantly improved, rising from £74k in 2023 to £121k in 2024, showing strong affordability to service the loan. Turnover has also increased by £3k between 2022 and 2023, consistent with the trend observed in the company’s bank statements. Additionally, there has been a positive movement in Tangible Net Worth, which increased to £317k in 2024, providing substantial physical assets to secure the borrowing facility. Retained earnings have grown from £188k to £317k, further strengthening the company’s financial position. Although the bank statements reflect a volatile cash flow, the company’s access to an overdraft facility of £30k offers some liquidity support. The Debt Service Coverage ratio stands at 1.74, and net gearing is at 18%, suggesting a balanced financial risk profile. A reduction in creditor days to 61 days is also a positive sign of improved cash management. The company’s current debt is with Reward Finance Group Limited.

Inflation Risk:
The company has stated that while inflation impacts many industries, we do not anticipate it significantly affecting our operations at Miltom Builders. Our long-standing relationships with suppliers and house providers, combined with our commitment to efficiency and sustainability, provide us with a strong foundation to manage costs effectively. Additionally, our focus on modern methods of construction allows us to minimize waste and optimize resources, further insulating our business from inflationary pressures. We believe that by staying adaptive and leveraging our industry expertise, we can continue to deliver high-quality homes without compromising on our standards or values.