A Tamworth construction equipment rental company has announced plans to increase sales by 40 per cent after a management buy-out.
First National Plant Rental, which specialises in the rental of telescopic handlers and self erecting tower cranes for some of the UK's largest house builders has been bought from Halesowen-based parent company, Core Group.
Headed by managing director Bill Roberts and operations director Ian Robins-Wilkins, the business recorded sales of £1.7 million last year and is on target to turn over £3 million by 2010.
Much of the growth is expected to come from its self-erecting tower cranes.
Common throughout mainland Europe, the specialist equipment is gaining popularity in the UK due to its ability to provide access to sites where space is restricted.
To fund the MBO, First National Plant Rental secured a six-figure asset based facility from Lloyds TSB Commercial Finance which lends against the business sales ledger. Commercial Finance is also helping to improve cash flow post deal, freeing up funds to ensure the firm has the capital required to fulfill contracts quickly.
Ongoing banking support is being provided by Lloyds TSB in Dudley.
Bill Roberts, managing director at First National Plant Rental, said: "This deal gives our business the flexibility required to move forward and expand more quickly.
"The construction industry continues to grow rapidly and we believe that our attractive range of products puts us in a strong position to move forward.
"We required a financial package which not only enabled the business to complete the buyout, but also provide the working capital facility required to service new contracts. Lloyds TSB Commercial Finance's facilities enable us to do this through our own balance sheet, bridging the gap between orders coming in and invoices being paid, and setting us up to realise our growth plans."
Jon Myerscough, regional manager at Lloyds TSB Commercial Finance, said: "First National has cut a profitable niche within the construction sector and developed an enviable client list including some of the UK's largest
and best known house building brands. Demand for its core telescopic handler remains strong, but demand for its self erecting tower crane looks set to propel the company forward."
Ian Bowland, who advised the management team and remains with the company as a shareholder and non-executive director, said: "We have ambitious plans and we are delighted to have Lloyds TSB committed to providing a financial support to ensure this can happen."
Andrew Beedham and colleagues at Clarke Willmott provided legal advice to the management team.