A Teesside building services contractor aims to grow turnover to £45m after securing a new multi-million pound finance package to support its future expansion plans.
Stockton-based LJJ has secured the deal from HSBC, giving it the opportunity to realise its full potential following a surge in contract wins and enquiries in recent months as the construction industry starts to return to health.
Established in 1991, the 120-strong firm works on projects across the UK, specialising in the design, installation and commissioning of mechanical and electrical services, but is focused on the North East and South East.
With clients in the commercial, industrial, public sector, retail and communal housing project sector, the firm has now switched its full business banking to HSBC’s Teesside Commercial team after a competitive pitch process.
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 £40m and £45m 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. 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: “LJJ 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.”