Member Article

120-year-old Keighley manufacturer secures £4.2 million finance to create new jobs

One of Keighley’s oldest businesses is due to embark on an major expansion programme after securing a £4.2 million finance package from HSBC.

Cardboard tube manufacturer J Stell & Sons is set to leave its manufacturing base of 120 years and move to new purpose built premises.

The company has secured the finance package from HSBC to acquire and redevelop the former Oakworth Joinery site, which is three miles from its current base at Holme Mills in Keighley.

The move will give the company greater capacity for growth and improve the efficiency of its operation. It plans to increase its current turnover of £7.4 million by 50% over the next five years.

J Stell & Sons, a family-owned business that was formed in 1872, specialises in producing cardboard cores and tubes, packaging and reels for a wide range of industry sectors.

It will create nine jobs over the next 12 months on the back of the move, bringing total employee numbers to 94. Chartered accountancy firm Clough & Company advised the firm throughout the fundraising process.

The company secured the finance from HSBC’s West Yorkshire Commercial team in a deal managed by senior international commercial manager David Sharp, with support from David Postlethwaite from HSBC’s Invoice Finance division.

In addition to HSBC’s funding package, the company also secured a grant of £88,500 from the Leeds City Region Enterprise Partnership’s Business Growth Programme, supported by the Government’s Regional Growth Fund.

The Business Growth Programme is designed to support SMEs in the Leeds City Region who are looking to grow and take on new staff and require financial support to enable this growth.

J Stell & Sons managing director Richard Guest said: ““We currently manufacture over three floors of a building and have a total of seven buildings we operate from, so consolidating our operations into one purpose built centre will help improve the productivity and performance of the business.

“We have been at our current site for 120 years, but employees are excited at the move and we will also be bringing a building that had fallen into disrepair back into use.

“We have had lots of help in getting to this stage from local advisors AWB Charlesworth, Clough & Company, and HSBC, all of whom will be involved in our exciting future.”

Mike Hemingway, HSBC West Yorkshire Area commercial director, added: “J Stell & Sons is a historic Yorkshire manufacturer that has managed to grow its business across several industry sectors, producing approximately 10,000 different products.

“This move gives the company a great platform on which to build its next stage of growth, creating jobs in West Yorkshire and also boosting the local economy. We are pleased to have supported this move and look forward to working with the company going forward.”

Nigel Bullas is Clough & Company’s managing partner said: “HSBC were extremely competitive and immediately formed a good relationship with the client and we’re delighted to complete this deal which will enable a thriving business to continue growing and creating new jobs in the area.”

Roger Marsh, chair of the Leeds City Region Enterprise Partnership said: “The LEP has supported over 250 businesses through the Business Growth Programme and J Stell and Sons is a fantastic example of how this grant funding can create new jobs and enable growth in the region.”

HSBC was advised on the deal by Laura McNabb of solicitors Bond Dickinson and Ewan Shaw from property consultants AECOM Professional Services LLP.

HSBC recently committed £200 million of lending to support ambitious businesses in West Yorkshire through its SME Fund. With 2014 marking a turning point for businesses in the area, the new lending has been made available to support those looking to capitalise on the UK economic recovery to invest in growth.

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