Sunderland based SE-TEK Limited has expanded its relationship with leading advisory firm Ryecroft Glenton (RG), as it experiences rapid growth following the completion of the Management Buy Out of Komatsu Mining’s Sunderland manufacturing operation in August 2021.
Having advised SE-TEK’s management team on the MBO through the firm’s specialist corporate finance service line, RGCF, RG has now been retained to provide comprehensive follow-on financial advice and support through its Outsourced | FD solution.
Outsourced | FD is a flexible service which provides SE-TEK’s finance function, including measuring and tracking the financial performance and goals of SE-TEK, enabling the business’ owners to concentrate on growth.
This has been especially important in the period following the MBO as the directors transfer the running of the business from the stewardship of a multi-national organisation to its team of Sunderland-based directors.
Operating from a 200,000 sq ft manufacturing facility in the city, SE-TEK has already begun expanding its workforce, having recruited more than 20 people, taking its headcount to more than 100. It has also engaged with the government’s Kickstarter scheme with an additional 20 young people joining the business shortly.
SE-TEK has also focused on building further capacity, including the introduction of a three-shift-pattern. This has been well received with the workforce.
SE-TEK manufactures and supplies components and fabrications to Original Equipment Manufacturers’ (OEMs) in Crushing and Screening markets as well as aftermarket parts in the aggregates, mining, tunnelling and construction sectors.
The company operates in both domestic and export markets from an established customer base and it is already starting to grow the orderbook with a strong pipeline of new opportunities.
Setting up a new business also required devising a new visual identity for the business, with SE-TEK engaging with Newcastle-based brand and digital agency, JUMP. The agency focused on how SE-TEK works with its clients to develop a range of brand solutions that reflects its vision and strategic ambitions.
Giles Richell, CEO of SE-TEK, said: “In the short time since we completed the MBO the pace of the business has been exceptionally positive with support from existing customers and suppliers, potential clients and, of course, our growing workforce that is enjoying being part of this new journey. We have a real opportunity to deliver strong growth and expand the business further.
“One of the main challenges has been transferring over all of the business’ back-office functions, such as payroll, accounts payable and receivables, credit control, IT support from Komatsu, thus enabling us to be in a position where we can stand on our own two feet. RG has been instrumental in ensuring this process has been as smooth as possible. The knowledge its team already had of the business from the MBO process, together with its comprehensive outsourcing services, has made RG an ideal partner for SE-TEK.”
Carl Swansbury, Partner and Head of Corporate Finance at RG, said: “The MBO has created a strong platform for growth for SE-TEK and we are delighted to be continuing to support the business’ continued growth and development. Our Outsourced | FD service, led by my fellow Partner Dan Cooper, provides SE-TEK with a fully operational finance function, which allows management to focus on the operations on the business, as well as giving the shareholders access to joined up, strategic tax, accounting and corporate finance advice.”
Rob Brown, Founder and Managing Director of JUMP, said: “We have really enjoyed creating a unique brand identity and assets for SE-TEK. We explored the business’ approach to its industry and customers to create a brand that represents the honest, detailed methodologies it applies to carve out a niche in its markets. The brand guidelines and website we’ve created will help SE-TEK portray its strategy in a cohesive way that will support its growth and development.”