As a respected brand with many years of producing award winning stereo equipment, Cyrus Audio has been at the forefront of British manufacturing in the advanced hi-fi sector for over 30 years. Having first sought a Regional Growth Loan (RGL) from Finance East back in 2013, the company has continually looked to innovate, furthering its range of accessible, high quality products, whilst pursuing an ambitious growth strategy.
With two previous Regional Growth Loans being used primarily for product development, Cyrus will use this current £125,000 loan to focus its efforts on the export market. Until now, only 30% of business has come from overseas compared to around 80% as a sector average. Strategic changes have been essential in order to position the business for this expansion, as MD Simon Freethy explains:
“We are extremely proud of our British design and manufacture but in order to meet the capacity demands of an international customer base, we had to accept that changes would be necessary. First, we took the decision to appoint a number of Far East component suppliers. We have put a lot of effort into securing suppliers that can produce parts to our exact specifications, which will then be used in the UK, where product design, assembly and testing will remain for the majority of Cyrus products. Second, we have granted a licensing deal to a Chinese manufacturer for a sub $500 dollar product. Again, this will be made to the high Cyrus spec that our customers have come to expect but will be made, and distributed in China and the USA, by our new license partner.”
In addition the Cyrus team has also appointed a Chinese distributor for its plus $500 range, resulting in a significant increase in 2017 export sales, which are above expectations. The Regional Growth Loan will be used to create new roles to support the Europe and North America distributor channels as well as product development and sales support in China.
Stuart Ager, Senior Fund Manager at Finance East, says: “Cyrus boasts a history of product innovation supported by extensive technical expertise. Following an assessment of the global market opportunity, the management team has adapted its sales and distribution model accordingly and is now able to capitalise on the strong sales pipeline it has developed, placing the business on the road to significant growth and profitability.”
The Regional Growth Loan Scheme (RGLS) is managed by Finance East, part of The FSE Group, on behalf of Local Enterprise Partnerships in the East of England and British Business Bank. The RGLS is available to established, incorporated businesses based within the East of England that have a minimum annual turnover of £100k, show strong growth potential and have a medium to long-term funding requirement to deliver that growth.
For more information about the Regional Growth Loan Scheme contact Stuart Ager on 07825 699407 or email firstname.lastname@example.org.