June/July 2020

Industry News
MANUFACTURERS
MAY FACE BARRIERS
TO NEW FINANCE
Manufacturers looking for fresh finance to
support business recovery and growth must
prepare for a tougher lending environment
as an outcome of the pandemic according
to Purbeck Insurance Services.
The provider of personal guarantee insurance is
warning the owners and directors of specialist
and small-scale manufacturing businesses that
they may find their finance options severely
limited unless they put their personal assets
such as their home and savings, on the line.
Todd Davison, MD of Purbeck Insurance
Services, said: “Reports suggest that
manufacturing is leading hope of a V shaped
recovery. While many firms have taken
advantage of the government’s support
measures, as these scale back in the latter
part of the year and cash reserves run dry,
manufacturers may start looking for new
finance. However it is likely that lenders will
become increasingly risk averse, so finance
may become more costly and more dependent
on the owners or directors signing a personal
guarantee. It is therefore crucial firms seek
expert advice from members of the respected
trade bodies such as NACFB or FIBA and
investigate ways to mitigate the risks such as
using personal guarantee insurance.”
Purbeck’s tips to mitigate the risks of personal
guarantees include:
• Educate yourself about the risks, ask
whether you can afford to take them and
always seek legal and/or personal finance
support – your accountant, solicitor or a
finance broker are good sources of advice
• Work out a way that you are not solely
carrying the liability – so split the
guarantee between your fellow directors
• Seek clarity on where your responsibilities
for the guarantee begin and end.
CORNWALL GROUP ON ACQUISITION TRAIL
Cornwall Group has said it is progressing
three potential acquisitions, having started
discussions in lockdown.
Mark Mitchell, chairman of the Cornwall Group
which includes Cornwall Glass Manufacturing,
Cornwall Glass and Glazing and Mackenzie Glass,
said it had received a number of approaches
from owners looking to make disposals since
March, of which three had now progressed to a
‘meaningful stage’.
Mark Mitchell
He said: “Cornwall Group remains an acquisitive Mark continued: “I do believe we’re going to
company and it’s always been a part of our see more consolidation in the coming six to
growth strategy.
12 months. This includes not only perhaps
some smaller manufacturers but also national
“We’ve received a number of approaches from
manufacturers who may be inclined to step back
companies looking to explore opportunities for
from some of their downstream activities.
disposal and those discussions have moved to
what I would describe as a meaningful stage, “There may also be a thinning out of large IGU
with three.
companies. Those companies require a lot of
work to feed them.”
“There is still a long way to go, none of the three
are ‘fire sales’ and whether any of them will come He added:“We aren’t looking to become the
to anything I don’t know – but I believe we are seen biggest but we are confident and planning for
as a business which can be approached and can growth and continuing investment for a long time
be trusted if you are looking to release assets.” to come.”
RETAIL BOOM ‘NOT SUSTAINABLE’
The latest monthly analysis of the key trends reinforce what any installer will tell you – retail
defining window and door retail, the Business demand has gone through the roof since the
Pilot Barometer, has revealed that the
restrictions placed on working in people’s homes
fenestration industry is currently booming with were lifted on 11th May. The figures are startling.
retail demand “through the roof”.
Average leads were up 70% June on May – and a
staggering 453% on April. Sales were up 46% on
However, according to Neil Cooper-Smith, senior
May and almost 560% on April.”
analyst at Business Pilot, the current trend
– brought about in part by a release of latent Despite the positive news, Cooper-Smith added
demand following lockdown, as well as the fact that: “This growth and demand is, and will not be
that household incomes have been temporarily sustainable... The question is will demand ‘settle’
secured by the government’s furlough scheme – to sustainable levels of growth or will it slip back
is simply ‘not sustainable’, leaving uncertainty into contraction?”
over the market’s future.
According to Cooper-Smith, the answer will
In his headline analysis of the Business Pilot be dependent on multiple factors including
Barometer, Edition 6: April/May/June 2020, government fiscal stimulus packages, growing
Cooper-Smith said: “The window and door job losses, the housing market and ultimately,
industry is seeing a boom. Figures for June consumer confidence.
12 TF JUNE/JULY 2020 CONNECTING THE WINDOW, DOOR & ROOF FABRICATION SUPPLY CHAIN