21 May 2009
£250,000 Transitional Loan awarded to Qualité Kitchens
A £250,000 Transitional Loan has been approved by the Northwest
Regional Development Agency (NWDA) to Qualité Kitchens and Bedrooms
(North West) Ltd, safeguarding 18 jobs in Greater Manchester.
Established in 1995 by husband and wife team Ian and Nancy
Aindow, Qualité was originally established to sell individually
manufactured kitchen and bedroom furniture directly to the public
from their showroom in Warrington.
Over time, this has extended to the construction market,
supplying kitchens for student accommodation and a range of
European influenced contemporary kitchens for the city centre
apartment market
Despite a strong trading performance in 2006 and 2008, when high
profits were achieved, Qualité suffered from a poor year in 2007,
preparing for orders that did not materialise. This in turn created
problems with their bank and coincided with the impact of the
downturn, which then affected the timing of payments received from
clients.
With the assistance of a Transitional Loan from the NWDA,
Qualité is able to continue to run the business, fulfilling current
orders that stand at levels similar to 12-18 months ago. Management
are confident that turnover will return to 2008 levels despite the
current economic conditions.
Qualité has recently signed two significant contracts and is
receiving ongoing enquiries for new works in the social housing and
public sectors, which have been less affected by the slow down and
perhaps more significantly, through links in the Middle East, are
also targeting the booming construction sector in Abu Dhabi.
There is a proposal to take on an additional 6 shop floor
workers to add to current 18, to meet current and expected orders.
If the projections prove realistic the workforce could grow to
50.
Without the Transitional Loan, the level of proposed new and
safeguarded jobs will be adversely affected.
Steven Broomhead, Chief Executive at the NWDA said:
“Qualité Kitchens has demonstrated a profitable track record
over recent years, including the current year, which in these
difficult financial times is a significant achievement. By
maintaining long term relationships with customers, the company is
well connected within the UK construction industry, enabling them
to begin the expansion into new markets.
“The NWDA believes Qualité Kitchens is a commendable recipient
for a Transitional Loan, safeguarding a number of jobs and
supporting substantial job creation in the future.”
Adam Aindow, Director at Qualite Kitchens said:
“The successful application for the Transitional Loan is of
fundamental importance to longevity of the business. The
economic downturn in the construction industry has led to increased
debtor days and a significant growth in bad debt.
“The Transitional Loan has allowed the company the opportunity
to realise the vast levels of debt currently outstanding to the
business, without impeding on the current working capital
requirement needed to successfully fulfil existing and new
business. With significant growth projected in existing markets and
into new international markets, the Transitional Loan has allowed
the company to safeguard existing jobs, allowing us to look to
create additional jobs.”
The NWDA is playing a crucial role in response to the current
economic downturn, with a number of actions being taken to meet the
needs of businesses during these challenging times.
To keep updated on the range of support being offered by the
NWDA visit www.nwda.co.uk/supportingbusiness
For further information on business support in England’s
Northwest go to www.businesslink.gov.uk/northwest
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Notes to editors:
For further information please contact Shelley Tattersall, Press
Officer on 01925 400256 or mobile 07500 128482 or shelley.tattersall@nwda.co.uk
For urgent out of hours press enquiries please call 01925
400259.
For further information and to view previous press releases visit
us at www.nwda.co.uk/press
The NWDA is supporting businesses and prioritising investments
to ensure that the Northwest is in a strong position to respond to
the current economic climate. Initiatives include:
• The launch of a £10m High Growth business support
programme
• A new £4m Innovation Voucher Scheme to help 1,000 businesses
work with our knowledge base
• Dedicated Access to Finance support within Business Link
Northwest – now available
• £140m Venture Capital Loan Fund (VCLF) - to be launched in
2009
• £40m package of support to stimulate investment in priority
skills development - to commence in 2009
• 10 day prompt-payment pledge to our suppliers to help with
cash-flow
For more information, see nwda.co.uk/business
The Northwest Regional Development Agency (NWDA) leads the
economic development and regeneration of England's Northwest and is
responsible for:
• Supporting business growth and encouraging
investment
• Matching skills provision to employer needs
• Creating the conditions for economic growth
• Connecting the region through effective transport and
communication infrastructure
• Promoting the region’s outstanding quality of life