Supporting growth at City Special Metals with flexible asset-based lending

The Challenge

Founded in 2001 by Keith Ingle and based in Essex, City Special Metals is a specialist distributor of metals and alloys, supplying high-specification materials to sectors including aerospace, defence, automotive, renewable energy and medical. The business exports to more than 45 countries and has built a strong reputation as a leading independent supplier of speciality and exotic metals, which include rare, high-performance materials that are often difficult to source and machine.

As Keith began planning his retirement, OVM acquired the business through a management buy-in. Alongside ensuring the transaction went smoothly, the priority was to guarantee that the company had access to flexible working capital which would support both the transition and future growth.

The Solution

To do this, Praetura Commercial Finance provided a multi-million-pound asset-based lending facility combining invoice finance, inventory funding and a cash flow loan. The funding structure was designed to fit around the way City Special Metals operates, where significant capital is tied up in specialist inventory and international trade.

The Transformation

Since the acquisition, that flexibility has proved particularly valuable. The facility allows funding to move with the business – supporting stock levels, smoothing cash flow and ensuring the team can respond quickly to customer demand.

For OVM, this has provided the stability needed to focus on integrating the business into the wider portfolio while maintaining momentum across operations.

Alun Lewis, Portfolio Director, Owner Venture Managers commented: “City Special Metals has been pleased with the way that the asset-based lending facility from Praetura has worked in meeting its financing needs since becoming part of the OVM Portfolio. The structure fits really well with the way the business trades day to day, giving us the flexibility to manage working capital, respond quickly to customer demand and invest when new opportunities come up.

“In practice, the combination of invoice finance, inventory funding and cash flow lending has worked exactly as intended. It’s helped the business maintain momentum while also supporting our longer-term growth plans.”

Ricky Shaifer of Plexus Finance added: “It’s been great to see how well the Praetura facility has bedded in since completion. From day one it’s given City Special Metals the kind of flexible, responsive working capital support the business needs.

“The ability for the facility to expand and contract in line with trading cycles has made a real difference, allowing the team to capitalise on opportunities rather than being constrained by more traditional funding structures. The way the facility has performed in life really speaks for itself, and it’s clear the partnership between OVM and Praetura is delivering exactly what we hoped for when the deal was first introduced.”

Jeff Greenfield, Sales Director (South), added: “It’s incredibly rewarding to see the facility doing exactly what it was designed to do. City Special Metals is a strong, well-run business, and the team have made excellent use of the flexibility and headroom the structure provides. The funding mix continues to support day-to-day operations, stock availability and the ability to service customers across multiple sectors without disruption.

“Our relationship with OVM and the management team has only strengthened since the acquisition, and we’re looking forward to supporting the next phase of their growth. The facility was always designed to evolve alongside the business, and it’s great to see that happening in practice.”

The deal was introduced by Ricky Shaifer at Plexus Finance. Jenny Chapman and David Gledhill at Bermans provided legal advice for Praetura, whilst Richard Murrall at Machins Solicitors (Luton) advised OVM. Hilton Baird provide AR diligence and Hilco provided inventory diligence.