A historic precision manufacturing company has secured £1.25 million in new finance to support its international expansion plans.

Birmingham-based Brandauer currently generates 75 per cent of its £7 million annual turnover from overseas sales but is targeting further growth in the US, Europe, Middle East and Africa.

The 151-year-old company specialises in contract presswork and stampings and manufactures precision metal components.

Its services include prototyping, design, in-house tool production, manufacturing and logistics, working in sectors such as renewables, life protection and automotive electronics.

The company said it had been reviewing all systems and procedures and would use the £1.25 million finance package from HSBC Commercial Bank to invest in machinery and a new IT system to improve management information and factory floor performance.

The financing marks the start of a new relationship between Brandauer and the bank after it moved its full business banking to the HSBC's Birmingham commercial centre.

Brandauer said it hoped to push turnover passed the £10 million mark and would invest in an apprentice programme by taking on 10 new starters over the next year, bringing the total payroll to circa 60 staff.

Sales and marketing director Rowan Crozier said: "We are delighted to be working with HSBC at what is an exciting time for Brandauer.

"With major new contracts in renewables and the life protection sectors about to start in high volumes, it is vitally important we have a bank that understands our growth aspirations and are committed to helping us get there.

"Over the next two years, we are looking to reach £10 million of annual sales and this will require continual investment in new technology and in extending our workforce through the recruitment of experienced engineers, graduates and apprentices."

The deal was managed by senior international commercial manager Joanne Yapp-Pennino and the finance was derived from the bank's new £500 million West Midlands UK SME Fund , £200 million of which has been specifically designated for Birmingham-based companies.

Ms Yapp Pennino added: "We are genuinely delighted Brandauer has moved its banking to HSBC and we believe we are the right fit to help the company with its international growth.

"It is a company we have admired for some time and a business that really champions manufacturing in the Midlands."