loanLoan
Capital at risk
36
Months
11.0%
Director
guaranteed
Capital at risk
Director guaranteed
Amount
£
You make
£
Minimum investment is £100
Total return
£
Monthly repayments
£

Metstok, market leaders in distributing stainless steel, are back for another raise! Thanks to a partnership with the largest steel manufacturer in India, Jindal Stainless, and distribution bases in Belgium and the UK, Metstok deliver high quality stainless steel at speed to European customers. Growing fast and with expansion to a new mill in Odisha, the funds raised will facilitate this exciting new period and help them increase available stock.

Globally renowned stainless steel delivered throughout Europe

At Metstok, we excel at providing fully certified EN standard material across Europe, from our mills in India. Our supply partner, Jindal Stainless, are India's largest and only fully-integrated stainless steel manufacturers. Here we have our Hisar mill, which specialises in manufacture for a wide range of industries, including razor blades, where we are the global leader in supply. They also produce cold rolled coils from 0.5-3.15mm thick, plus hot rolled coils from 2-12mm thick - in total, this amounts to an annual melting capacity of 0.8 million tonnes!

We have short lead times, competitive prices, and exceptional customer service: this is what makes Metstok stand out. We aim to overcome many of the barriers of global selling, such as letters of credit and fixed prices. We keep stock in the UK, and hold central stock in Antwerp for distribution throughout Europe, to ensure we can meet demand at any given time. As part of the British Stainless Steel Association, we make sure that we meet and exceed all regulations.

We are currently undergoing an expansion to a new mill in Odisha, which will produce 300 series products, both cold and hot and rolled stainless steel. In order to keep up with the distribution of this increase in supply, we will be growing at an exciting rate. We will use the money raised in this campaign to purchase this additional stock as we continue to expand.

X

Business keeps the raised amount even if target is not met.
Loan - product type
Tranche (1 of 2)
£ 213k
Raised
£ 172k
Investors
532
Estimated close date
Funded 2 months ago in 29 days

Where will the funds go?

Stock purchase
£200,000
Working capital
£13,000

Key people

John Neil Vernon
Director

A. Jakob, the market is quite unclear at the moment as the tariff is based on global quantities. Due to the tariff structure there will be a rush to get material in but as a consequence companies will be nervous about ordering forward. This will potentially lead to shortages at the end of the year prior to the definitive safeguards being announced. We are comfortable that our supply lines are already in place for this period.

A. Jakob, the market is quite unclear at the moment as the tariff is based on global quantities. Due to the tariff structure there will be a rush to get material in but as a consequence companies will be nervous about ordering forward. This will potentially lead to shortages at the end of the year prior to the definitive safeguards being announced. We are comfortable that our supply lines are already in place for this period.

A. Hi Blair, a good question.
Most of our stock never reaches the UK, 98% is held in the port of Antwerp ready for EU distribution.
We are comfortable with "Brexit" at this stage and have at least two and a half years with the transition period so are not unduly concerned in the short to medium term.
Once we know the outcome of the negotiations by March 2019 we will review the position.

A. Hi Michael, the first Crowd2fund raise is now fully repaid. With regards market prices they are moving all the time so no we will not miss the boat. The raise is so that we are funded when the right strategic moment presents itself which might be two or three times a year.

A. Hi Michael, There is no intention to repay the other loan early. This raise is simply to facilitate more stock in when prices are rising.

A. Hi Michael, There is no intention to repay the other loan early. This raise is simply to facilitate more stock in when prices are rising.

A. Hi Michael,
There is no intention to repay the other loan early. This raise is simply to facilitate more stock in when prices are rising.

A. Hi Golnar,
Our customers are very loyal and our customer base increasing, we lose very few. Further being a commodity our customers return time and time again. The top 5 are 50% of the business but we have around 100 trading accounts.

A. Golnar, you are correct that we we outsourse warehousing and distribution. We are a team of 18 people in all.

A. Sharon,
These were long term loans from a corporate development fund with a couple of years to run. The company has a full debenture with Bibby who fund trade finance and invoice discounting.

A. Alan,
We have a very low fixed cost and a high variable based on volume. Profits have been depressed mainly by high finance costs but as we become more established and our credit rating improves we are reducing those variable finance costs so net profitability is improving.

A. Jakob, you are absolutely right to question global tariffs and they will have a major impact on the market moving forward. Prices are currently suppressed due to metal being diverted from the US but there will be a safeguard measure announced by the EU shortly after 5th July which will protect the market and lead to rising prices. We are comfortable with the current proposals and our supplies are not at risk.

A. Hello Jakob,
Yes the year to March 2018 was a pre tax profit circa £250k and the 2018 -19 budget is for £350k pre tax profits.

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Business brand

Clitheroe, UK

"Globally renowned stainless steel delivered throughout Europe"

Incorporated
5 years, 5 months
Equifax score
47 / 100
Equifax Grading
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Average score
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Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision