New banking facilities support MarineGuard Systems
Santander UK has provided MarineGuard Systems, a company designing, developing and installing marine security systems on superyachts and offshore facilities, with new government-backed banking facilities.
The new arrangement includes the restructuring of the company’s working capital facility and an innovative bond solution to release funds otherwise tied up in ongoing contracts.
The Southampton based company was founded in 1998 by Richard Webb and today employs 38 people. The guaranteed bond, provided by Santander UK in conjunction with UK Export Finance (UKEF), the UK’s export credit agency, means that the business immediately receives cash previously held as a retention by boatyards in Germany, so working capital can be released back into the business at an earlier stage.
The new banking facilities have made it easier for MarineGuard to fulfil new contracts worth £18.3m (€20.5m) to install security systems on superyachts being built at two shipyards in Germany. The facilities also mean that MarineGuard can reallocate equity to target new work outside its core business, supporting its continued growth with opportunities to diversify and branch into new markets. Paul Woollard, director trade & supply chain finance, leads the Santander UK team working with MarineGuard.
Richard Webb, CEO and founder of MarineGuard Systems, commented: “Working with the team at Santander has been a breath of fresh air. With the current uncertainty, our priority has been on building reserves so that we can service our clients and grow the business through new revenue streams. The release of funds has been pivotal for us, allowing us to focus on new business endeavours.”
Jo Whatley, relationship director, Santander UK, commented: “It has been a pleasure assisting MarineGuard Systems with their working capital need. Working together, the solution we’ve put in place means the business can continue as a world leading expert in the field of superyachts, while also embracing opportunities to diversify and take their skills to other markets, ultimately helping to fuel growth at an important time for the business.”
Julie Robertson, UKEF export finance manager, said: “Helping companies grow their businesses by backing their exports is what UK Export Finance is all about. By helping MarineGuard Systems to fulfil this deal, we are supporting jobs in this important industry.”