Glasgow's BM Steel targets robust trading year after funding support

Glasgow-based Barclay & Mathieson (BM Steel) is eyeing a record trading year, having benefited from support it says enabled it to refocus its strategy during the pandemic.

The 144-year-old steel stockholder and supplier was closed for four weeks to ensure it was Covid-safe, and said Secure Trust Bank moved fast to provide it with the additional liquidity it required through the provision of a Coronavirus Large Business Interruption Loan.

That backing continued the already-established relationship between the two organisations. In 2018, Secure Trust Bank provided the Scottish firm with a £35 million facility to complete the acquisition of South Essex Stockholders – a steel stockholder and supplier based in Shoeburyness – before supporting further with facility increases and backing BM Steel’s acquisition of Midlands-based supplier SPS.

BM Steel said the support is enabling it to stretch its focus to continue developing high-margin products. Picture: contributed.

Private-equity-owned BM Steel, which now has 14 depots across the UK, said the support has allowed it to stretch its focus to continue developing high-margin products, furthering its profitability. It has invested in technology to increase its value-added processing capacity and to enhance its service proposition alongside its core buying and selling operation.

Mick Welden at BM Steel owner Breal Capital said: “When Covid hit, Secure Trust Bank understood the strength of our businesses and was ready and willing to guide us through the Covid loan schemes process.

"Moving forward, we are looking to continue to serve our existing clients and, with our new business model in place, we are focused on adopting our new e-commerce platform to further increase profit margins and serve a burgeoning online market.”

Jeremy Uphill, head of portfolio at Secure Trust Bank, said: “Our creative approach has supported BM Steel on its growth journey, through acquisitions as it sought to reposition itself with higher-value products. We look forward to seeing BM Steel progress further still.”

Breal Capital says it typically focuses on UK-headquartered businesses, in the manufacturing, distribution, wholesale, support services and retail sectors, mainly UK small to mid-market companies with investment and funding requirements of £500,000 to £35m.

UK retail lender Secure Trust Bank said that as of June 30, its loans and advances to customers totalled £2.4 billion, and its total customer base exceeded 1.5 million.

A message from the Editor:

Thank you for reading this article. We're more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers.

If you haven't already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription.