Hotel fit-out specialist sets sights on bigger projects with MEIF II funding

A&C Construction has carried out work for chains including Crown Plaza, Radisson, Valor Hospitality, Q-Hotels, Kew Green and leading independents. The loan from the Midlands Engine Investment Fund II, through fund manager Frontier Development Capital, will provide additional working capital as the company begins a number of multi-million pound contracts. 

Based in Aldridge near Walsall, A&C Construction was founded 35 years ago by Clive and Angela Teale and is now run by their son Chris. The company employs 13 permanent staff and has 20 to 70 contractors on site at any one time.

Chris Teale, Managing Director, said: “Hotel refurbishment is a specialist field and requires the right type of contractor. As hotels rarely close, tradespeople are working in a live environment and must be able to fit around the hotel’s schedule and be sensitive to the needs of guests.

“They must also be able to interpret the design brief for rooms of different shapes and sizes while maintaining a consistent look to reflect the brand’s image. After 35 years in business, we understand the needs of the industry. The funding will help to support the work in progress and give us the confidence to take on bigger jobs.”

Raj Minhas of Frontier Development Capital added: “A&C Construction is a family business that has built a solid reputation in the hotel sector and wins repeat business from many of the big chains. Lack of working capital can limit the growth of construction firms so we are pleased to be able to support Chris and the team as they look to take the business to the next level.”

David Tindall, Senior Investment Manager at the British Business Bank, said: “Access to the right type of funding is essential for businesses looking to scale and fulfil ambitious growth plans. We are pleased to support A&C Construction as it continues to strengthen its presence in the market and contribute to the region’s construction sector.”

Steve Harris of Central Finance provided fundraising advice to the company.

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides equity investment up to £5m and debt finance from £25k to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.