Region: South East
Programme: Future Fund
Maintaining funding and consolidating its position in a key UK industry of alloys development was going to be difficult for OxMet, particularly once the aerospace sector began to feel the impact of COVID-19. Needing alternative sources of capital to help get through the pandemic meant turning to the Future Fund.
Read what the company had to say in this Future Fund case study.
British Business Bank: Can you tell us what your company does?
Michael Holmes, CEO of OxMet: OxMet develops novel alloys and alloy components for the industrial, medical and electronics sectors, including by 3D printing. We aim to become the world’s leading provider of the intellectual property needed to make these advanced alloy components.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply to the Future Fund?
A substantial proportion of our income and prospects relate to the aerospace sector. We were not facing any immediate cash crunch, but we did face the prospect of having to reduce our rate of investment significantly in order to ensure we had enough cash to break even. We would have cut our rate of investment significantly and given up on projects of potential value.
How long did the application process take? Did you need any support?
It took around four weeks from the announcement of the fund opening to our receiving the money.
The Future Fund has allowed us to continue investing in projects of vital interest to the UK and to employ a growing team of world-class engineers, without any further support from the taxpayer.
Michael Holmes, CEO of OxMet
What advice would you give to other businesses that are applying to the Future Fund?
Never underestimate the need for extra liquidity in a recession. Liquidity shortages tend to destroy more shareholder value than planned dilution.
How has the Future Fund helped your organisation to weather the outbreak? And what might have happened if you hadn’t received the money?
It has helped us with increasing our working capital. It provided a very high return on investment of relatively little time, and the application was handled competently. The Future Fund investment has allowed us to continue investing in projects of vital interest to the UK and to employ a growing team of world-class engineers, without any further support from the taxpayer.