Shreds Ltd - Family firm bags deal with exclusive stores
A Lincoln gift manufacturer, whose business started life at a kitchen table 40 years ago, has developed a manufacturing strategy, won orders worth £200,000 a year and secured extra bank borrowing with support from the Manufacturing Advisory Service (MAS) East Midlands.
Nick Shirley, Managing Director
“Shreds needed reassurance and encouragement that it could manage its supply chain to take advantage of these lucrative opportunities.”
Ross Ryan - MAS Advisor
A Lincoln gift manufacturer, whose business started life at a kitchen table 40 years ago, has developed a manufacturing strategy, won orders worth £200,000 a year and secured extra bank borrowing with support from the Manufacturing Advisory Service (MAS) East Midlands.
“We had negotiated contracts to design and supply Harrods, Hamleys and Past Times with a range of branded plastic coated cotton bags. But to fulfil the orders we needed to develop a manufacturing plan and funding strategy to accommodate cash flow and get the right logistics in place for the extra stock,” said Nick Shirley whose mother originally set up Shreds to earn some extra cash while she was bringing up a young family.
In order to take advantage of these new contracts Shreds needed to develop a fully costed manufacturing plan detailing cash flow, manufacturing costs and processes, logistics issues and new business opportunities. Their bank would only consider extending the company’s borrowing on the back of a plan of this type.
Nick, who owns Shreds jointly with wife Joanna, said: “Once we explained the requirements to the MAS Adviser, who came to see us, he was confident that they could help and under the MAS programme, we were eligible to receive a 50% subsidy on the bill. Without this support, it would have been a massive lost opportunity as we were literally up against a brick wall at the time we first spoke to MAS. Orders for stores such as Harrods definitely put us in a strong position to win other desirable business – we’ve already got a possible opportunity to supply Habitat“
Ross Ryan, MAS Adviser said: “Shreds needed reassurance and encouragement that it could manage its supply chain to take advantage of these lucrative opportunities. Designing customised products for big brands certainly has the most potential for the business as even though the margins are lower, there is a lot more scope for higher volume sales”
Shreds manufactures a range of aprons, luxury baby toys and bags with an in-house capability for bespoke design. It has an annual turnover of £1m and a staff of 10, and although most of its products are made in China, it retains a production capacity in the UK.
MAS in the East Midlands is funded by East Midlands Development Agency (emda).
