Multi-asset facility unlocks headroom and confidence for 100-year leading transport service provider and road tanker distributor
Scunthorpe’s haulage mainstay
Founded in 1922, Clugston Distribution Services Ltd is a specialist haulage business based in Scunthorpe with a proven track record that spans over 100 years. The company specialises in steel, fuel, bulk food and industrial powders, silo evac and specialist loads, and owns a commercial vehicle maintenance workshop and a Renault franchise Auto-Testing Facility approved by the Driver and Vehicle Standard Agency – and as the town’s second largest employer after British Steel (of which it is a key logistics partner), it plays a vital role in the regional economy.
From headwinds to headroom
After a challenging period that slowed down progress, the business focused on stabilising performance and resetting for growth. With sales momentum returning, the priority was clear: create more working capital headroom so the team could confidently win and fulfil new contracts without cashflow constraints.
Experience that makes a difference
To meet their ambitions, Clugston needed a lender that could:
- Unlock value from multiple assets in one cohesive structure
- Support with credit control to help balance risk and opportunity
- Provide a single point of contact throughout the process to move with expertise and pace
Structured Finance: a flexible solution
The business was introduced to Regional Director Steve Armstrong by Wendy Shaw at Shaw Consulting (East Midlands) Ltd. Steve explains, “Wendy’s turnaround expertise and close support were instrumental in shaping a robust funding solution and providing further confidence throughout the process”.
Ultimate Finance structured a comprehensive asset-based lending facility blending Invoice Finance and Asset Finance to a total of £3.7m. By fully leveraging receivables and asset values, we created a flexible funding line that:
- Increased day-to-day headroom for working capital
- Provided the confidence to pursue new contracts
- Kept the structure simple with one Relationship Manager and direct access to decision-makers.
Our joined-up approach with underwriting ensured the facility was tailored to the nuances of the business, its sector and growth plan.
Wendy says, “Clugston has a strong core business and an important role in the regional economy. Ultimate Finance engaged early, listened, and, through their deal team’s joined-up approach, built a pragmatic structure that supports both today and tomorrow”.
Steve adds, “It’s a privilege to help realise the growth ambitions of a business with over 100 years of history and such significance in Scunthorpe. This is exactly what our Structured Finance is designed to do – keep business moving”.
What’s next
With the business stable and confidence restored, Clugston is now focused on taking its growth further – both organically and through potential new acquisitions, which Ultimate Finance is looking forward to support.
Alistair Clugston, CEO, says, “The comprehensive due diligence conducted by the team at Ultimate Finance and their support have significantly bolstered our company’s position. Their meticulous approach and insights have not only validated our current operations but have also paved the way for a robust foundation for future growth. As a result of this thorough assessment, we are now poised for refinancing and eager to seize new opportunities for expansion. Ultimate Finance’s dedication to understanding our business has truly set us up for success”.
Looking to help your clients unlock greater funding for their complex needs? Find out more about Structured Finance.
