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Second round funding supports continued investment at Western Automotive Ltd

26/01/09

A second round of investment from Finance Wales plc and financial support from the Welsh Assembly Government has supported the continued growth of one of South Wales’ largest commercial automotive repairers and fleet solution providers.

Western Automotive Ltd of Crynant, Neath services the fleet, insurance and classic markets, providing high volume mechanical and bodywork repairs.

Finance Wales plc, a provider of commercial funding to businesses in Wales, has provided £100,000 debt investment in the business following an original £50,000 investment last year. The company has also received a £70,000 grant from the Welsh Assembly Government’s Single Investment Fund.

The latest funding will allow the company to expand into new markets, including a new facility in Cardiff serving South East Wales and new machinery and technology that will position it as one of the leading automotive repairers in Wales.

The business was established by directors Richard Stock and Spencer Kinzett in 2007. Both men had previously worked in the national UK rental market and decided they could make a mark in the automotive repair sector, providing an unparalleled level of service to customers.

Now employing 21 people, the company plans to nearly double the workforce over the coming years.

Ieuan Wyn Jones, Minister for the Economy and Transport, said the Single Investment Fund was created to help and support Welsh business and to make the process as easy and accessible as possible.

“It is particularly pleasing in the current economic climate to see how support from the Assembly Government can help a local business expand and take advantage of new market opportunities. It’s also good to hear of the company’s plans to open a new facility and create new jobs which we are delighted to support.”

Mr Kinzett commented: “Using our experience of the industry, we realised that there was a need in the marketplace for a large volume operation that was more geared to customers’ requirements. We have invested heavily in new equipment and have the capability to deal with work varying from cars to the largest commercial vehicles.”

He added: “We received an initial investment from Finance Wales in 2007 and soon realised that we’d need additional funding to expand the business in the direction we wanted to move. With the second round investment we can now progress with our plans which include expansion into new areas and markets.”

Western Automotive Ltd already has a number of major insurance companies using it for car and commercial repairs. It also provides independent work for fleets and private individuals and companies.

The company has also made it into a national television drama after renovating an Audi Quattro for the acclaimed BBC series Ashes to Ashes. The programme makers needed authentic vehicles from the 1980s and Western Automotive Ltd had a Quattro which was completely refurbished for the drama.

David Birch, Investment Executive at Finance Wales, said: “Since our initial investment in Western Automotive Ltd back in December 2007, the company has continued to grow significantly and the management realised additional investment was needed. Looking at their growth potential we were happy to support the company’s plans which will provide investment at a critical time for the business.”

Finance Wales, a subsidiary of the Welsh Assembly Government, provides commercial funding to businesses throughout Wales, for start-up/early-stage to development capital and succession deals. It has invested more than £100million through more than 2,000 investments since 2001 and has leveraged an additional £317million private sector investment.

Advisors on the deal were Riverside Consultancies, based in Swansea.