Member Article

Colne Valley company invests £500,000 in expansion drive

A Colne Valley company has invested £500,000 to expand its factory and create more jobs.

Slaithwaite-based Hystat Systems is gearing up to meet growing demand for its products from the oil and gas sector in Scandinavia – with financial support from Lloyds Bank.

The company, which specialises in manufacturing hydraulic cylinders and piston accumulators used mainly in the oil and gas and industrial sectors, has already announced work to create an additional 800sq metres at its New Street premises – increasing its manufacturing and assembly areas by a third.

Now the company has announced that the expansion – supported by a £300,000 manufacturing loan from Lloyds Bank Commercial Finance – will also create eight new fitting and assembly jobs.

About 60% of Hystat’s products are exported and its growth in recent years has largely been driven by the expanding oil and gas sector in Scandinavia – and Norway in particular.

Director Simon Wadsworth said: “This extra space sets us up for the long-term future in Slaithwaite. It will give us more capacity, which will allow us to take advantage of the growing market and bid to win more business from rivals.

“It also means that we can do more work in-house – which we would have previously had to subcontract to a third party – which will help boost our margins.

“Working with Lloyds has helped us manage our cashflow while investing to take advantage of growth opportunities as they emerge.”

Founded in 1976, Hystat has 105 staff. Last year, it saw revenues rise by more than a fifth as turnover grew from £8m in 2013 to £11m in 2014.

Chris Perkins, relationship director for manufacturing at Lloyds Bank Commercial Banking, said: “Manufacturing is integral to the country’s growth objectives and Lloyds has committed an additional £1bn of new lending for manufacturers every year until 2017 to drive growth in the sector.

“Our understanding of manufacturing and our trained managers can provide guidance to help find the most appropriate plan.

“It is fantastic to be able to support Hystat’s ongoing expansion plans.”

A £1.75m invoice discounting facility, arranged by Graham Irons and Rob Kelly at Lloyds Bank Commercial Finance, also supports Hystat’s working capital requirements.

The facility releases up to 90% of the value of issued invoices straight away so that Hystat doesn’t have to wait up to 90 days for payment,

This was posted in Bdaily's Members' News section by Robert Beaumont .