Member Article

Recruitment entrepreneur goes independent with £250k finance

A recruitment entrepreneur has taken his business independent, while investing in new premises as he aims to increase his turnover by 25%, with the support of Lloyds Bank.

North East Lincolnshire’s Tower Staff Construction provides the building industry with qualified members of staff for permanent and temporary assignments.

Established in 2011 by managing director Gary McMullen, the firm now has more than 3,000 construction professionals on its database.

Gary originally worked as a crane operator until he was made redundant in 2010 and decided to open his own business. To do this, he approached established recruitment firms to see if he could invest and create a specialist construction wing within their organisations.

He succeeded and in 2012 had a turnover of £1.4 million whilst working with the support of another firm. With newly-secured contracts and a growing construction staff database, Gary decided to turn Tower Staff Construction into a standalone business in its own right in March.

To achieve this, he invested heavily in a new responsive database, which allows speedier searches for candidates and quicker response times. Gary also invested in new computer systems which enable all office staff to use one platform and sync information for ease.

Gary has already increased his members of staff by one since he has taken the business independent, in addition to the two that were already employed. To support this, he has invested in a new larger office in Dudley Street.

Following an increase in temporary staff placements, Gary approached Lloyds Bank for a £250k invoice discounting facility that enables him to free up cashflow without waiting on payment from clients.

Invoice discounting can help businesses that want quick access to cash tied up in their sales invoices. With this option companies can stay firmly in control of invoice and credit control processes.

As the construction industry continues to improve following the economic downturn, Gary now expects Tower Staff Construction’s turnover to increase by £350k in 2014 from £1.4 million last year.

Gary McMullen, managing director of Tower Staff Construction, said: “We established the business in a tough market, but we have seen consistent and solid growth since. Our aim is to continue to grow our turnover and the number of workers we are placing, whilst remaining committed to providing clients with a high standard of personal service.

“Since we pay temporary workers on a weekly basis, cash really is the lifeblood of our business. Without an invoice discounting line, we wouldn’t be able to pay our workers and continue to grow the business. It has taken pressure off of our cashflow, allowing us to invest in expanding the firm.”

Peter Bould, regional manager at Lloyds Bank Commercial Finance, said: “Gary has seen impressive growth and has established a solid reputation in a niche market. As the construction industry recovers, the firm will be able to take advantage of new projects and demand.

“The new invoice discounting facility will allow the firm to secure its long-term expansion plans. This kind of invoice finance can be particularly useful for recruitment agencies that rely on paying temporary workers on a weekly basis. We look forward to supporting Tower Staff Construction as it continues to grow and firmly establish itself as a leader in the market.”

This was posted in Bdaily's Members' News section by Clare Burnett .