Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

HSBC provides seven-figure finance to Teesside contractor

HSBC has provided a seven-figure finance package to a building services contractor based in Teesside.

The package for contractor LJJ is to support the company’s forecasted future growth, HSBC said.

LJJ’s turnover is expected to hit around £45m in its current financial year to July 2014 – a rise of 50 per cent on the previous year – on the back of a number of contract wins, including several hotel jobs in London.

Accounts filed to Companies House for the previous year showed turnover of £29.9m, with an operating profit of almost £1m.

LJJ was founded in 1991 and works on projects mainly in the North-east and South-east. The firm specialises in mechanical and electrical services across the majority of sectors, including commercial, industrial, retail, communal housing and public sector.

The seven-figure package from HSBC is said to be able to offer the company the “capacity and flexibility to cater for increased levels of business in the future”.

LJJ employs around 120 people directly, but many more via subcontractors.

Its commercial director Lee Rennison said: “We have seen a significant increase in both the number of enquiries and the value of contracts, so we are expecting turnover to be between £40m and £45m this year at a conservative estimate.

“We have purposefully not pitched for certain business over the past couple of years because competitors have been driving down margins and we didn’t want to be involved with that process.”

“We wanted a finance package that was bespoke to our needs and HSBC was the only bank that was able to deliver that for us, taking into account our strong balance sheet and excellent credit history.

“This facility now gives us the confidence to continue to grow the business and the comfort to know we will be able to accommodate new contracts.”

HSBC Tyne Tees Area commercial director Pat Dellow said: “The company was very specific about the structure of the finance package they wanted and my team showed initiative and ingenuity to come up with a proposal that met their requirements.”

Readers' comments (1)

  • Nice to see HSBC doing something positive for a company operating within the construction industry. When our building company suffered a lost through a major client going bust, the first thing they did was remove the overdraft facility and immediately started legal action to pursue the debt...!

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.