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Red Rock Recruitment

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    Red Rock Recruitment

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    Having both been successful recruitment consultants working for large well known recruitment businesses, Daniel Mitchell and Stephen Penn soon realised that their future ambitions lay elsewhere. They decided it was time to reap the rewards of their hard work, contacts and expertise and build something of their own.

    With over 20 years of construction experience between them, Daniel and Steve believed they could provide a bespoke solution from a recruitment perspective to the industry. So, with a commitment from one anchor client, the brave step was taken and RedRock Recruitment was formed.

    As with many recruitment start-ups, RedRock found it initially tough going. However, the combined determination of Daniel and Steve and a smart recommendation from their lawyer has seen them go from strength to strength.

    Sourcing and supplying contractors in this sector can be difficult, especially on cash flow. Payment Terms are routinely stretched by clients, making credit limits a major constraint on business growth. It is no surprise that the Construction industry is still regarded as one of the highest risk sectors when it comes to finance by insurance companies. With that in mind, their lawyer recommended Daniel and Steve speak to Simplicity.

    RedRock Recruitment’s lawyers quickly recognised that the support of a professional recruitment finance and back office solution would give them the security and stability needed to thrive in such a challenging industry as the Construction Sector.

    Simplicity is one of very few Recruitment Finance companies who offer support to consultancies working in the construction sector. Many companies are deterred by the specialist knowledge required and few have the expertise and processes to work effectively in partnership with a construction recruiter.

    “Simplicity understand the needs of RedRock Recruitment; not only in recruitment but also in construction. Their solutions have revolutionised the way that we work and their drive to continuously innovate will no doubt contribute to our success story.”

    By Daniel Mitchell, MD RedRock Recruitment Ltd

    The first thing Simplicity did was help RedRock Recruitment secure CIS Gross Status. Without it the added strain on cash flow could have been crippling. Gross Payment Status means that contractors will pay you in full without deductions. (Non Gross Status agencies either have to claim back deductions monthly if they are a limited company or at the end of the tax year if they are a sole trader or partner).

    You must also be on time with your tax returns and payments to keep your gross payment status as HMRC will carry out an annual review.

    When RedRock Recruitment didn’t receive as many vacant positions as anticipated during their first year, the company’s business plan was in danger of being compromised. However, hard work eventually paid-off. The funding and support that Simplicity provided allowed them to concentrate on business development and ultimately helped them achieve their forecasted £1m sales target in their first year.

    Simplicity’s ‘Double It’ solution was also crucial in helping RedRock manage their clients’ credit limits – something not accessible through any other funder. The tailored, scalable back office solution meant they could focus their time on business development and reduce their dependence on any one client, which is a high-risk strategy in any line of business.

    RedRock Recruitment continues to go from strength to strength. Daniel Mitchell says, “We are now confidently building the business with our eyes firmly set on a future of continuous growth”.

    “We have a true partnership with Simplicity. We are 100% committed to working with them and feel confident their support will see us meet our ambitious growth targets.”

    By Stephen Penn, MD RedRock Recruitment Ltd

    We are now confidently building the business with our eyes firmly set on a future of continuous growth.

    By Daniel Mitchell, MD RedRock Recruitment Ltd