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.”