Location: Matlock, Derbyshire
Electrical contractors, P&D Specialist Services Ltd started working with Mitchells Accountants in 2007. At this point P&D specialised in supplying and installing CCTV Cameras for the Highways Agency.
However, following a cut back in government spending in 2010, the contract that originally accounted for 80% of P&D’s overall annual turnover was at risk, and the future of the business was uncertain.
Pat Musgrave, Managing Director of P&D Specialist Services Ltd, identified the need to diversify and broaden the customer base to protect the company’s future. This is when P&D managed to secure a contract with Transport for London worth +£1m. The contract was for P&D to supply Transport for London with 177 solar powered mobile signs to transmit key messages to road users during the London Olympic Games 2012. Although, things were not all plain sailing for the company during the completion of the contract.
Here Managing Director, Pat Musgrave, discusses how Mitchells Accountants helped P&D secure finance to be able to complete the Transport for London contract and provide a platform for growth for the company’s future.
Going back to 2010, what did Mitchells Accountants do to help you complete your contract with Transport for London?
“After realising the need for diversification in 2010 we began looking into Mobile Visual Information Systems and established sister company, M-VIS. Andrew McDaid and the team at Mitchells prepared forecasts for us to pitch for a contract with Transport for London. The forecasts showed that we were more than capable of delivering the project and that the signs could be completely paid for by the profit from the contract.
“We won the contract with Transport for London for us to supply and install a large number of solar powered mobile signs for the London Olympic Games in 2012. However, after we’d won the contract our original financers and funders, although initially confident, pulled out of the deal.
“Obviously, the London 2012 date was immovable so pressure began to build quickly. At this point I approached Mitchells again for them to help us with securing alternative external finance. Andrew, having strong relationships with Reward Capital, Lloyds, and Lombard, negotiated a deal on our behalf which was mutually beneficial. The fact that Andrew managed the whole process on our behalf took a lot of pressure off of me and the rest of the management team.
“Following the security of the finance deal, Andrew also reviewed our current banking facilities and provided us with a list of alternative banks that could support P&D’s plans for growth going forward. Since then we’ve appointed a new bank and grown substantially thanks to the support Mitchells provided us with.”
How has P&D Specialist Services Ltd grown since you were able to access finance?
“Following the completion of the contract with Transport for London our business has grown exponentially. The 177 variable signs we provided for the London Olympic Games are now hired out for events and traffic management across the UK, with our sister company M-VIS.
“Before diversifying, 80% of our annual turnover was accounted for by one customer, whereas now only 20% of our annual turnover comes from that one customer. And due to establishing M-VIS, we have tripled our workforce as a result of the finance too.
“Andrew McDaid and the team at Mitchells are seen as part of the team at P&D Specialist Services Ltd – an essential part of the toolbox required to run a business. Mitchells are highly professional and provide us with added value, thanks to their monthly management reports we are able to track our progress as a company.”
What are the future plans for growth at P&D Specialist Services Ltd?
“We’re currently developing our two most recent companies, M-VIS Australia, and Bartco UK which expand our services to more customers by expanding to the Australian market, as well as manufacturing signs.
Our company’s growth plans are secure as we now have the relevant relationships needed to ensure we get the best deals when it comes to external finance funding for new projects. Mitchells has supported the company and enabled us to get to a more financially viable, and beneficial place which puts us in great stead for securing future projects.”