Number 8

Expansion is Key

Creating more than just luck for one recruitment firm

Number 8, a UK based specialist construction recruitment firm serving the international recruitment markets, was established at the end of 2008 by Peter Hart, Group Operations Director, and Zinzan Brooke, former captain of the All Blacks Rugby Team.

In 2013, it saw particular growth in New Zealand, where the recent earthquake in Christchurch meant that demand for skilled construction workers had outstripped supply. In addition to responding to this demand, the firm wanted to specialise in temporary recruitment for the demolition industry, in addition to providing construction clients with high-level permanent recruitment.

We established the business in a tough market, but we have seen consistent and solid growth since. Our aim is to continue to grow our turnover and the number of workers we are placing.

Trevor Mills, Managing Director, Number 8 

Staff increase

To cope with increased customer demand and new services, the firm would have to employ more temporary staff. It currently places approximately 500 temporary workers every week, with plans to double this number over the next few years, while retaining its focus on client service.

These temporary staff are paid on a weekly basis, however payment terms for customers are typically much longer than this.

Since we pay hundreds of temporary workers on a weekly basis, cash really is the lifeblood of our business.

Trevor Mills, Managing Director, Number 8

WAITING ON PAYMENTS

The firm approached Lloyds Bank Commercial Finance for a £2 million invoice discounting facility, meaning it can borrow against outstanding customer invoices so it can pay staff.

This funding bridges a gap when waiting on payment from customers, which can take up to 90 days. The firm turned over £12 million in 2012, with plans to grow this to £15 million this year.

Without an invoice discounting line, we would be unable to pay our workers weekly and continue to grow the business. It has taken pressure off our cash flow and allowed us to invest in expanding.

Trevor Mills, Managing Director, Number 8

Freeing up cash flow

Lloyds Bank Commercial Finance is committed to finding the funding package that is right for its customer’s needs – whatever they may be.

The funding package put in place by the bank will allow the firm to secure its long-term expansion plans. This kind of invoice finance can be particularly useful for recruitment agencies that rely on paying temporary workers on a weekly basis.

Number 8 has seen impressive growth in a tough market, and has established a solid reputation in a niche market. As the construction industry recovers, the firm will be able to take advantage of new projects and demand.

Richard Clarke, Client Manager, Lloyds Bank Commercial Finance

Freeing up cash flow