in Aerospace

Wyelands Bank research highlights aerospace manufacturers' difficulty in raising finance

Posted 30 May 2019 · Add Comment

Research from Wyelands Bank, set up to help small and medium businesses, shows that nearly two thirds (59%) of UK mid-sized aerospace manufacturers have faced challenges raising finance.

The research of UK mid-sized aerospace manufacturers turning over £10m to £300m reveals that half (53%) say accessing finance is more difficult now than five years ago.

Iain Hunter, CEO of Wyelands Bank, said: “Our research shows that UK mid-sized aerospace manufacturers have faced considerable challenges in raising finance.  What’s more, our research highlights that the situation is getting worse not better.

“But without greater access to finance, UK mid-sized aerospace manufacturers will not be able to trade, grow and create jobs.  Helping mid-sized businesses unlock growth along the manufacturing supply chain would help tackle the UK economy’s productivity challenges. 

“Mid-sized firms generate more growth and create more jobs than their larger or smaller peers, but they are often neglected by banks and financial services providers.  Wyelands Bank was set up to address these issues and help these firms to unlock growth, filling a vital gap in the market.”

The research shows difficulties raising finance to support their growth has stopped UK mid-sized aerospace manufactures from winning new contracts and stifled new job creation.

Each aerospace firm said that the difficulties raising finance meant they had missed out on an average of £17.7 million in revenues and an average of 37 new contracts.  These would have enabled each firm to create 41 new jobs.

These figures suggest that the 140 mid-sized aerospace manufacturing businesses in the UK have collectively missed out on 1,813 contracts.  These would have created 1,394 jobs and some £867m in revenues.

The Wyelands Bank research also shows the preference for debt financing over equity funding among UK mid-sized aerospace manufacturers. 

The research highlights that nearly four in five (76%) of mid-sized aerospace manufacturers asked would prefer not to consider giving up equity to raise finance. 

However, highlighting the difficultly many firms now face, more a third (35%) of those who would prefer not to give up equity have had to consider it. 

Iain Hunter added: “Wyelands Bank helps businesses tap into the value in their fixed and working capital assets so they can unlock growth without giving up equity.  We do this by getting to know the customers we work with and tailoring the solution to meet our customer’s specific need.” 

According to BDO[i], the business advisory firm, over the past five years businesses this size have delivered revenue growth of 32% and profit growth of 45%.  This compares with FTSE350 companies whose revenues have shrunk by 0.6% and whose profits have fallen by 40% in the same period.  Over that time, small-business revenues fell by 2% though profits rose by 6%.

BDO also shows that growth in these firms has created more jobs than large and small businesses combined.  In the last year mid-market firms created 534,900 new jobs compared with 191,000 by small businesses and a loss of 157,000 by the FTSE350.

* required field

Post a comment

Other Stories
Latest News

CAE to train more than 1,000 new easyJet pilots

CAE has signed a long-term exclusive training agreement with easyJet to train 1,000 new easyJet cadet pilots on a Multi-Crew Pilot licence (MPL) programme.

Rolls-Royce awarded $1.2bn US Navy contract to support V-22 engines

Rolls-Royce has been awarded a contract by the US Navy to provide V-22 Osprey AE1107C engine support, worth $1.2 billion.

Airbus tests ocean satellite Sentinel-6Aís operational fitness

Airbus space engineers are currently testing the Copernicus Sentinel-6A satellite at the Space Test Centre of Industrieanlagen-Betriebsgesellschaft mbH (IABG) to prove its readiness for space.

SAS' first A321LR to enter its long-haul fleet

The first of three new A321LRs, a narrow-bodied aircraft suited for longer distances, will enter into service in the SAS fleet on 18th September 2020.

ATI appoints Stephen Ball as Non-Executive Chair

The Aerospace Technology Institute (ATI) has announced the appointment of Stephen Ball as Non-Executive Chair, effective from 23rd January 2020

Airline bankruptcies and risk aversion limit September traffic growth

European airport trade body, ACI EUROPE today released its latest air traffic report for September & Q3 2019, measuring all commercial aviation flights: full service, regionals, low cost and charter.

ODU 0201311219
See us at
FIL20BT010819260720S&P BT241019040320VIDSE BT1605060320DSEI JP BT1605201119