International boost for Invergordon nail polish firm
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AN Easter Ross nail polish manufacturer is repaying the faith shown in it by public sector funders by securing national and international contracts.
Andrew Pearson established SMC Cosmetics UK with support from Highland Council’s Growth Fund and, subsequently by Business Loan Scotland.
New contracts with a number of UK and international original equipment manufacturers (OEMs) will now help fuel its growth and expansion.
Mr Pearson originally approached Highland Opportunity (Investments) Ltd, Highland Council’s loan fund, early 2016 for advice and support in establishing the nail polish manufacturing business in Invergordon. This resulted in a series of discussions and support for the new company.
Mr Pearson was brought up in the Highlands, where his father set up a successful business.
After working as a chartered engineer in Glasgow, Mr Pearson decided to move back to the Highlands to raise his young family.
Making use of his industry relationships, technical expertise and the support of his father, who had substantive experience in the nail polish manufacturing industry, he set up SMC Cosmetics and began looking for funding with support from the Highland Council team.
However, his high capital cost base led to either his applications being rejected or financial support only being offered at prohibitive interest rates.
Following discussions with the investment manager of Highland Opportunity (Investments) Ltd, Mr Pearson was able to access support from the Highland Growth Fund which, together with asset finance from the proposers, which allowed him to go ahead with the first stage launch of his company. Subsequent additional support from Business Loan Scotland, a second funding stream available via Highland Council, along with others, has allowed him to improve efficiency and productivity and help meet OEM market quality expectations.
Mr Pearson said: "SMC was classed as a high-risk project by traditional lending sources. However Highland Council helped us throughout by critically evaluating and supporting our plans and helping us by simplifying the process. It was frustrating, with attitudes of many lenders only alleviated by Highland Council’s team support and belief in what we are seeking to achieve. Without their commitment it may have been difficult to achieve our success.
"SMC has already taken on eight employees and is looking towards future growth in the market which will increase employment in the Highlands. We are looking to rival the seven or eight main manufacturers in the world with contracts won due to our commitment, flexibility and minimal lead times. Our approach to encourage and develop a long-term relationship with our customers is seen as a positive attribute."
Councillor Helen Carmichael, Inverness Provost and chairwoman of Highland Opportunity (Investments) Ltd, said: "Highland Council is pleased with the success to date of SMC and that our support both of finance, but also in advice and guidance, has helped cement the company within the community and support their growth plans."
