Though many businesses are worried about the impact of energy prices on their operations, this increased pressure drives the opportunity to review consumption and consider more sustainable options. In fact, in one recent survey of energy decision-makers at UK organisations, 61% ranked energy security as a top three driver of energy decarbonisation.
While approximately a third of surveyed executives are reviewing energy procurement or renegotiating contracts, just 23% have reduced their energy consumption, and only 19% have invested in on-site renewable energy generation. As the study notes, in many cases, capital investment is needed to support change.
This was the case for furniture manufacturer Ambic. Ambic manufactures bespoke contract furniture for global customers in a multitude of industries, including leisure, retail, marine, hospitality, pharma, medical, and more. Based in the North-East of England, the business has a reputation for making quality, robust furniture. Its manufacturing centre in County Durham uses state-of-the-art CNC machines to turn Computer Aided Designs into precision-made furniture and fittings.
Given the energy-intensive nature of manufacturing, Ambic found costs were quickly becoming unsustainable in the face of rising energy prices. The company knew that generating its own power would be key to staying competitive in the marketplace and looked into installing solar panels on the roof of its Chester Le Street factory.
Originally, the company planned to make a small investment using its own capital funds. However, after getting in touch with finance broker Anglo Scottish and running the numbers, Ambic found that by increasing the size of the investment the business could become entirely self-sufficient.
Such an investment was beyond their budget, so Ambic set about trying to find the ideal financing partner for the project. Anglo Scottish gathered all the financial information and determined that Siemens Financial Services (SFS) would be able to provide the best solution. As a specialist financier, SFS is practised at creating solutions that consider every factor: commercial requirements, the specifications of the desired product, and its real-world application. SFS were therefore able to tailor an agreement to match Ambic’s business needs and the expected outcomes of the installation.
Taking into account Ambic’s existing energy costs, SFS supplied a financing package that spread the cost of investment over a seven-year term, and structured the arrangement so that the energy cost savings from the solar panels would cover almost the whole cost of the initial investment. As an added bonus, Ambic has been able to keep its electricity costs below prior levels all whilst servicing the new asset debt.
“Communication throughout the whole process was fantastic. Charlotte Enright at Anglo Scottish and SFS looked at what we needed and created a bespoke solution for us which met our needs entirely and made the whole process a lot easier,” explains Liam Hunt, Managing Director at Ambic.
With the new solar installation, Ambic is expecting to save £1.94m over 25 years, and eventually run on 100% renewable energy.
“At the end of the day the numbers don’t lie,” adds Liam. “Using finance for this large purchase has allowed us to keep cash in the bank which we can reinvest and use to fund new customer projects.”
Emma Gallagher, Internal Sales Account Manager, Siemens Financial Services UK, comments, “Even though the benefits are clear, not enough businesses are seizing the opportunity to invest in sustainability and take control of their energy costs. Ambic are among a group of proactive businesses who have set themselves an ambitious goal and found the means to make it happen – with a little financing support, of course!”
