Southampton Marine Services (SMS Group) secured a USD 4 million contract with the German company AIDA Cruises to refit the first of three ships in Marseille, thanks in part to a commercial loan backed by the Export Working Capital Scheme (EWCS) from UK Export Finance (UKEF), the British government’s export credit agency.
The Crown-backed financing, issued by Santander UK, has enabled the Southampton-based firm to execute its largest European contract to date and positions it to accept new orders from clients in the rapidly growing cruise sector.
Each major outfitting project allows the UK’s largest independent ship repair company to hire additional staff and several subcontractors, directly supporting job creation and skills development in the country’s marine engineering sector.
Founded in 2016, SMS Group brings together the expertise of maritime professionals from some of the UK’s most respected marine engineering companies, such as Burgess Marine, Testbank, and Small & Co. Today, it is a provider of ship repair and marine engineering services both on board vessels and onshore.
Over the past five years, SMS Group has built a strong reputation in the design and outfitting of interiors for major American and European cruise companies. The contract with AIDA Cruises represents a significant step forward in the European market and demonstrates the company’s growing international capability.
The EWCS is designed to help UK companies access the working capital they need through their banks to fulfill international orders. For SMS Group, this support has provided the necessary financial security to undertake larger and more complex international projects.
Richard Armstrong, UKEF manager for Hampshire and the Isle of Wight, said that “these facilities are an excellent example of how UKEF can support British companies in the maritime services sector to expand globally and create jobs in the UK. We are pleased to back SMS Group in its continued growth and in achieving its export objectives.”
Nicholas Warren, Commercial Director of Southampton Marine Services, stated that “the backing from UKEF and Santander UK has been transformative for our business. It has given us the confidence necessary to take on larger orders and a greater volume of international work. This support allows us to compete globally while maintaining the high standards that characterize the SMS Group.”
Tee Cato, Senior Director of Trade and Supply Chain Finance at Santander UK, added that “we are pleased to have supported SMS Group in signing its largest European contract to date. This agreement demonstrates the importance of SMS Group and the maritime sector in general for the UK’s economic growth. We look forward to continuing to collaborate with SMS Group and UKEF.”
The Export Working Capital Scheme is part of UKEF’s comprehensive suite of products designed to help British businesses of all sizes access international markets and increase their export revenues.
During the last financial year, UKEF provided a record USD 19 billion in new financing, helping more than 667 British businesses to export and grow, and supporting up to 70,000 jobs across the country.
