Working Capital Case Study


Name: Millen Drylining
Industry: Construction 
Turnover: £3.2million


“With the help and support of Bibby’s specialist collection team we have reduced administrative processes and been able to focus on winning new business and developing our team of staff,” says Paul.

The Problem

Millen Drylining Ltd is typical of most construction firms in that it faces the monthly challenge of trying to balance its cash flow against outgoings. The company’s labourers are paid fortnightly but invoices and applications for payment are sent on a monthly basis, creating a drain on cashflow when it comes to paying out subcontractors. The majority of building materials are also paid for upfront and the pressure to reach sales targets and project deadlines adds to monthly outgoings.


This coupled with the impact of the recent credit crunch, which has seen high street banks becoming increasingly more stringent about their lending criteria for small businesses, has created even more pressure on already stretched financial arrangements. However Millen Drylining Ltd has found a flexible solution to help them overcome these challenges.

The Solution

Paul Holmes from Millen Drylining Ltd says, “We are a small company and employ nine permanent staff and between 50-60 subcontractors. Maintaining a steady cash flow has always been difficult and the current financial squeeze has meant it has been even more important to utilise the specialist finance packages available to us from Bibby Financial Services rather than relying solely on overdraft facilities with our bank.


“We have found having the facility to release 65% of the value of our unpaid invoices and applications for finance has made a big impact on relieving the pressure on our cashflow. This additional flexibility has helped us manage our cash flow at peak times of the year, such as in the summer, when weather is at its best and work more plentiful”.


Over the last 18 months, Millen Drylining Ltd has enjoyed a period of growth and won considerable business from local competitors. With a turnover of £3.2 million, the firm has found Bibby’s flexible finance solutions have not only relieved financial pressure but also allowed it to focus on developing other areas of the business.


Millen Drylining Ltd recently appointed two senior contract managers and is considering starting an internal apprenticeship scheme to encourage more young people into the dry lining industry and ensure that this specialist skill is preserved.