After the first round of funding with First West Capital in 2012 helped grow Ardrossan-based Canada Pump & Power (CPP), Chief Financial Officer, Darrell Mathison, approached First West Capital Regional Director, Northern Alberta, George Coon in spring 2015 to secure additional working capital to build upon their rapidly growing business.
“Working with First West Capital in 2012 was an easy experience. The funding we received had a huge impact on our ability to grow,” recalls Darrell. “I was very comfortable calling on them again to help us access additional funding when the need arose to purchase equipment to service our growing contracts.”
Local expertise and solid partnerships
Working capital from First West Capital provided CPP the financing they required to buy a new dredge – which is a key piece of equipment to perform marine industrial services for a key customer – without interfering with their regular operations. This has enhanced this business relationship and could result in lucrative contract opportunities in the future, including the chance to be a preferred vendor. In addition, the funds have strengthened their balance sheet, making it easier to qualify for traditional financing down the road.
“George was able to offer valuable insight and experience because he really understands the Oil and Gas industry in Alberta. It’s a huge advantage to have that local presence – I didn’t have to teach him about our business, we just discussed our strategy”
This time around, CPP would have the benefit of working directly with resident industry expert, George, who has headed up First West Capital’s Edmonton operation since March 2014. There has been a significant opportunity to serve the growing market in Northern Alberta and strengthen the relationships with successful, growing clients like CPP. “George was able to offer valuable insight and experience because he really understands the Oil and Gas industry in Alberta.
It’s a huge advantage to have that local presence – I didn’t have to teach him about our business, we just discussed our strategy,” says Darrell. “Again, we had a great experience working with First West Capital, and continued to build upon our established relationship with them.” George appreciated the opportunity to once again provide CPP with the ability to strengthen their key partnerships and foster future business opportunities. “It’s rewarding to see such a success story here in Alberta. CPP has been able to flourish in a difficult economic period, and we’re happy to have provided the support to help them continue to grow.”
The road ahead
This company has big plans to grow to $100 MM someday – a 400% increase from where it is currently. As CPP looks into growing their business and expanding their product offerings, they are aware that the biggest challenges they will face will be to attain and retain skilled human capital. Darrell explains, “We’re taking one step at a time, setting up the infrastructure for success. We’re confident in our business – at the same time we aren’t putting pressure on ourselves.”
As well, CPP is facilitating change in order to grow their business by expanding their geographic reach from exclusively Fort McMurray to the Edmonton area starting July 1. “Once an organization reaches a particular stage in its business cycle, it plateaus; there needs to be change in order to grow the business,” says Darrell. And that is exactly what CPP plans to do.