Flexible financing is a breath of fresh air for ICH following £2.5m funding
Heating, ventilation and air conditioning specialist ICH have secured £2.5m in funding from IGF to expand into the facilities management compliance sector
ICH is a heating, ventilation and air conditioning specialist (HVAC) with strong organic growth. For almost 30 years the company has offered design, installation, maintenance and asset management, all with a personal service. Now the company is poised for a significant shift, as it seeks to service larger contracts and extend its reach into FM compliance testing. This is currently a massive growth area within the HVAC sector offering substantial revenue generation.
ICH already ploughs its profits back into the successful business. To compete with its larger competitors and take advantage of the thriving FM compliance sector it needed to invest in technology efficiencies and take on highly-skilled engineers. ICH selected a flexible financial partner in Independent Growth Finance that would enable it to quickly secure £2.5 million in funding.
As a result, ICH is expecting revenues to jump 20% – from £11.6m in 2018, to £14m by 2020.
Neil Blenkin, managing director of ICH, commented: “Large contracts require a substantial amount of working capital to allow for the purchase of materials and labour. Material costs alone can make up 50-60% of the expenses behind contracts worth over half a million pounds. Alongside that we needed more highly-skilled engineers who could competently take on the complex needs of jobs outside our current scope, supported by an upgrade in technology that would increase efficiency.
“We quickly realised that we were being stifled by inflexible high-street financiers who would not provide the up-front funding to allow us to take on large nationwide contracts and expand into new services. The decision was made to mutually part ways and we searched for a funding provider who not only understood our business’ growth ambitions but backed us 100%.”