One of the Sheffield City Region’s fastest growing businesses has secured a substantial equity investment from UK Steel Enterprise (“UKSE”), the investment subsidiary of Tata Steel.
Following a competitive process, Tekfloor Limited has completed the minority investment in order to accelerate their impressive growth plans.
Rotherham-based Tekfloor is now established as the UK’s leading independent distributor of screed and associated products to the construction sector. Under the stewardship of owners Steve Foster and Adam Wiszniewski, the company has delivered rapid growth with turnover set to exceed £20m in 2019.
The investment is the next logical step in Tekfloor’s development, providing a solid foundation for the company to further enhance sales and profitability by exploiting strategic growth opportunities.
Since the Tekfloor’s inception in 2013, its success has been built on exceptional customer service and technical expertise, supported by robust systems and procedures.
The investment will enable Tekfloor to augment its success to date and pursue exciting new opportunities. These include moving into the external wall render market where it aims to repeat its success in the screed market by becoming the UK’s leading independent in renders also. To facilitate these plans, Tekfloor is expanding its specialist team and investing in a new fleet of vehicles.
A BHP Corporate Finance team of John Longstaff, Mark Cooper and David Forrest acted as lead advisors to the company with Paul Trudgill and James Burdekin from Keebles providing legal advice. Keith Williams and Gordon Jamieson delivered the funding package from UKSE, with Nick Goulding providing legal support.
Adam Wiszniewski, finance director at Tekfloor, said: “Steve and I have known for a long time that the potential for Tekfloor was huge. The only thing holding us back was a lack of funding. It is very satisfying when a reputable investor like UKSE gives us such a vote of confidence. This investment will allow us to really kick on to greater things.”
David Forrest, partner at BHP Corporate Finance, said: “This is a genuine landmark moment for Tekfloor. Since starting out only six years ago the business has achieved phenomenal growth and of course had to deal with the inevitable challenges of such a growth trajectory along the way. This development capital fundraising is perfectly timed and gives Tekfloor the platform to take the business to the next level. It’s been a pleasure for us to have been part of their journey for several years now and we look forward to continuing to support Steve and Adam going forward.“
Keith Williams, regional manager at UKSE, said: “It was an easy decision to invest in Tekfloor. The company has grown rapidly by providing excellent service to customers and we believe this is just the start of a bigger growth story. Steve and Adam have been highly professional in their approach and easy to work with, enabling swift completion of the investment. This deal strengthens Tekfloor’s ability to invest in new opportunities to improve their product and service offering and accelerate what is already impressive growth.”
Paul Trudgill, partner at Keebles, said: “After having acted for Tekfloor for several years and seen them grow significantly in that time, it was great to be able to assist them to secure the investment they need to achieve their ambitions.”
Photo from left to right: Keith Williams, UKSE; David Forrest, BHP Corporate Finance; Steve Foster, Tekfloor; Adam Wiszniewski, Tekfloor; Gordon Jamieson, UKSE; James Burdekin, Keebles; John Longstaff, BHP Corporate Finance.