Teeside's LLJ secures seven figure HSBC finance package to support future growth

A Teeside-based building services contractor has secured a new seven figure finance package to help support the company’s future growth.

LJJ, of Stockton, has secured the funding from HSBC, giving it the capacity and flexibility to cater for increased levels of business.

The business has continued on a course of a steady increase in turnover with sales this financial year expected to be in the region of £45 million on the back of a number of contract wins.

LJJ was founded in 1991 and works on projects across the UK but predominantly concentrated in the North East and South East. It also has an office in High Wycombe, which predominantly focuses on work in the south of England.

It specialises in the design, installation and commissioning of mechanical and electrical services in all types of commercial, industrial, public sector, retail and communal housing projects within the public and private sector.

The company, which employs around 120 people directly and a significant number more via sub-contractors, has experienced an upsurge in contract wins in recent months as the construction industry starts to return to health, with recent projects won including several major hotel contracts in London.

LJJ 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 £40 million and £45 million 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.

“However, there has been a certain degree of consolidation in the industry with some competitors pulling out of the marketplace to focus on other areas and also some competitors going out of business, hence, margins are starting to return to a more sensible and realistic level in the Industry.

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.“

Pat Dellow, HSBC Tyne Tees area commercial director, said: “We are excited to be working with LJJ, which has made great strides in just a short amount of time, and has demonstrated strength and resilience by navigating one of the sharpest downturns in the construction industry in modern times. 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.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →