GATESHEAD: A leading independent builders’ merchant in the North of England is making its growth ambitions a reality thanks to nearly £1m funding from the Royal Bank of Scotland (RBS).
James Burrell has secured a total of £900 000 from RBS and its asset finance division Lombard, to fund five new Mercedes trucks to add to its existing fleet of 20 vehicles.
The additional bank finance was provided by way of cash flow funding, helping the firm add to its already extensive product range and meet new orders as it looks to achieve significant organic growth.
James Burrell’s ambition is to see sales go beyond the £40m mark this financial year, while also ensuring improvement in its margins, as it looks to take advantage of the opportunities that exist in what is still a tough sector. The support from RBS has also enabled the merchant to recruit three new sales people. "They are already bringing in significant new business and expertise," the company said.
Established in 1877, James Burrell currently turns over more than £35m and employs 150 people at its eight depots across the north of England. The company’s fleet of heavy goods vehicles delivers over 340 tonnes of building materials each day from its yards in Newcastle, Blyth, Gateshead, Middlesbrough, Bishop Auckland, Stockton, York and Ossett.
Stephen Richardson, joint managing director, said: “After 133 years in business, we have a wealth of experience and expertise in the supply of heavy side building materials.
"Our strategy is to continue to grow while providing the very best services and products available and our ongoing relationship with RBS enables us to turn this strategy into reality. Without the support of RBS we would not have been able to achieve this within such a short timescale.”
Graham Robinson, relationship director, RBS Corporate & Institutional Banking, said: “We are delighted to see such an important local and independent firm realising its potential.
"It’s no secret that the building sector has gone through a difficult period, so it’s very encouraging to see James Burrell focused on growth despite this and hopefully it also demonstrates our commitment to helping local firms grow and enhance their offering.”
