OakNorth Bank completes £1.4M loan to Newcastle-based, automotive manufacturing business, Clavis IDS, to support future growth

  • Clavis has been providing engineering solutions to a wide range of sectors for over 40 years and supplies its products to 45 countries worldwide;
  • Its top-10 customers include leading automobile manufacturers such as Ford, BMW, Ducati, and Volvo;
  • The business completed a management buyout in 2018. The capital from OakNorth Bank will refinance the debt from that transaction and support future growth;
  • The global Industrial Assembly Equipment market was worth $136bn in 2020, and has experienced exponential growth over the last few years due to increased efficiencies from assembly robots in the production and assembling processes[1].

OakNorth Bank, the UK bank for entrepreneurs, by entrepreneurs, has provided a £1.4M loan to Clavis IDS, the Newcastle-based manufacturer of automotive assembly line testing equipment which is part of Integrated Display Systems (IDS).

Founded in 1980, IDS is a niche engineering company operating in the design and manufacture of belt tension measurement and automotive production line assembly equipment including hose clamp detection systems, that have become even more pertinent with the increased production of electric vehicles (EV). In the last 12 years, IDS has received numerous patents and independent accolades for innovation and technological achievement, most notably being awarded the Queen’s Award for Enterprise – the most prestigious business award in the UK – on six occasions. With top-10 customers including Ford, BMW, Ducati, and Volvo, IDS is recognised as the industry leader for designing and manufacturing automotive equipment, shipping its products to 45 countries worldwide. In 2018, the business completed a management buyout which part of the OakNorth Bank loan will help refinance.

Andrew Punton, Managing Director of Clavis IDS, commented: “The global Industrial Assembly Equipment market is worth $136bn and has seen exponential growth over the last few years against a backdrop of efficiency improvements such as assembly robots in the production and assembling processes. Despite the impact of COVID on our customers, we’ve managed to deliver against our plan since the management buyout, and thanks to this capital from OakNorth Bank, are well placed to continue growing as the automotive sector recovers and production lines are restarted. We’ve taken out business loans before, but the OakNorth experience was very different – speedy, transparent, and entrepreneurial. As a business celebrated for its innovation, we appreciate the innovative approach OakNorth Bank has taken to commercial lending.”

Al Morris, Director of Debt Finance at OakNorth Bank, continued: “Over the last four decades, Clavis has managed to garner numerous patents, as well as multiple industry accolades, and build a loyal client base with some of the world’s best known automotive brands. It is remarkable what this 16-person team led by Andrew and Mark Errington, Andrew’s business partner, has managed to achieve, but just goes to show the incredible innovation and engineering capabilities we have in the North. It is companies like Clavis – innovative, resilient, and adaptive – which give “Made in Britain” such credibility and assurance around the world, and we look forward to continuing to support the business with future growth.”

Peter Cromarty, Managing Director of CCBS Group, which facilitated the transaction commented: “It was great to work with a fantastic management team and business at Clavis IDS. OakNorth Bank immediately presented the right solution for the business and then we needed to ensure we were able to deliver in the required timescales which we did. I think this will allow the business to move forward to its next stage of development with a supportive funding partner. We look forward to working with Clavis IDS and OakNorth Bank for years to come.”

 

ENDS

Notes to editors

[1] Source: Market Study Report

About OakNorth Bank plc

Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.

Since its launch, the bank has:

  • Lent over £7.5B, directly helping with the creation of 31,600 new jobs and 22,300 new homes across the UK.
  • Raised deposits from c.160,000 savers.
  • Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.

It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Visit www.oaknorth.co.uk for more information.

Contact

Valentina Kristensen, Director, Growth & Communications – valentina.kristensen@oaknorth.co.uk / press@oaknorth.co.uk / 0757 234 9009

[1] Source: Market Study Report

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