AR Demolition drives sustainability through new services and flexible funding
- Customer rapidly starts up lucrative new operation, with the potential to generate circa £500k per annum
- New company creates employment opportunities for the local area
- Asset funding frees up capital for operational costs and onsite facilities
AR Demolition provides demolition, site clearance and excavation services. Over the last ten years, the company has built a reputation for efficiency, reliability and quality.
Approached to undertake a new industrial recycling operation, the business needed to purchase five new machines whilst retaining working capital for operational use. A new division, AR Aggregates, was set up to deliver against the contract. With the potential to generate an additional £500k per annum, it was paramount for the business to obtain prompt funding.
AR Demolition’s Directors Richard Dolman & Andrew Thompson were keen to acquire funding via a single provider. “Financing everything with one company is not only neat and tidy, but by grouping the assets you obtain a better deal. Asset finance was key to this venture, as it provided us with funding and freed up working capital for investment in operational areas of the business,” says Dolman.
Working closely with AR Demolition, Lombard structured a bespoke asset funding solution to meet the company’s needs. Simon Moult, Relationship Manager at Lombard explains, “The Hitachi Excavator was financed on a straight forward replacement basis for the existing business, A R Demolition Ltd. The Volvo and Sandvik machines were more complicated as they were required for a new, as yet unproven, business. Having a dedicated team whose sole focus is to determine the true future value of an asset was crucial. We were able to structure a robust solution based on residual value that provided AR Aggregates with competitive payment terms whilst unlocking working capital.”
Already familiar with the excellent track record of AR Demolition, Ian Pearce the NatWest Commercial Bank Manager brought together the evidence needed to demonstrate the potential ROI of the project. Within three months, the deal was complete.
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