Member Article

Local firm benefits from £400,000 in NEL Funding

A local construction company is celebrating, after it was awarded £400,000 from NEL Fund Managers to help towards its expansion plans.

Koru Property Service decided to launch a new mior works service last year to capitalise on the decsion by an increasing number of public sector institutions to manage their own budgets for everyday repairs and maintenance requirements.

In the four months after the start of the programme Koru secured over £220,000 in contracts- predominantly through word of mouth. The additional resources will now go towards running the minor works division, and the firm hopes to achieve a turnover of £1 million in 2012 in this area of the business alone.

Alongside their new service, the firm also offers a range of design and operations services, which they will operate through their new Teesside office. They hope to expand further into the petrochemical and pharmaceutical markets, and have made significant investments in their IT infrastructure.

Most of the company’s work is carried out in the North East, but have worked on a range of projects across the UK in the industrial, commercial, retail, education, health and housing association sectors.

Commenting on their new service, director Tony Henderson said: “Setting up the minor works division recognised the increasing trend for people such as head teachers to be given greater budget responsibility for maintenance at their respective institutions, and the immediate results that we’ve secured shows our commercial instincts were correct.

“Investing in new equipment and other resources will enable us to tender for and take on a greater number of projects, and we’re very confident that the minor works will quickly become a significant income stream for us.”

David Thomas, investment executive at NEL Fund Managers, adds: “Despite the toughest construction industry climate in decades, the Koru management team has developed a robust business that is succeeding by delivering high-quality work to a loyal customer base.

“Their use of investment capital provides a fine example of how it can help companies make a step-change in their operations, and we’re very pleased to be renewing our relationship with them.”

Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.

This was posted in Bdaily's Members' News section by Ruth Mitchell .