A Midlands vehicle parts manufacturer has received £12.5 million backing from Lloyds Bank to support its plans to grow turnover by 50 per cent to £50 million in the next three years.
Linecross, which is based in Rutland, and has a big operation in Cannock, has used the funding to fit 914 solar panels to the roof of its South Luffenham factory - between Uppingham and Stamford - to help cut its rising energy costs. It has also invested in new machinery and made a number of key appointments.
The business is a UK engineer and manufacturer of moulded plastic components for vehicles in the prestige automotive, transport, leisure and off-road markets. It supplies some of the UK’s most iconic vehicle brands, providing a range of exterior and interior parts from its Staffs and Rutland sites.
The business underwent a management buyout in 2003 when its current owners David Austin and Stuart Fry took over.
Since then, they have helped grow turnover from £6 million to more than £34 million, and increased the team from 100 to 295. Through a strategy of innovation and investment the firm now has a plan to reach a turnover of £50 million by 2026.
Because new machinery is purchased from Europe and paid for before delivery, Linecross be helped by asset finance, trade finance, a capital import finance facility and invoice finance totalling £10.5 million from Lloyds. Combined, that will help with cashflow and ensure healthy working capital and headroom are maintained.
The machinery investment is supplemented by the addition of another 25,000 sq ft factory unit next to its existing Cannock facility and a number of key appointments to strengthen its management team.
Linecross chairman and financial director David Austin said: “It has always been in Linecross’ DNA to grow through innovation, investment and collaborative relationships with our trading partners.
“Lloyds Bank and their focus on both UK manufacturing and the Green Agenda have proved to be the right financial partner to help Linecross realise both the next phase of our financial aspirations and support our transition to a sustainable future.”
Khush Johal, relationship manager at Lloyds Bank, said: “Linecross makes a significant investment in new machinery year-on-year to maintain a high quality end product for its clients and futureproof the business.
“As a firm targeting rapid and sustainable growth, it’s essential that they maintain strong cashflow, enabling the business to maximise on commercial opportunities in their market.
“We’ve supported Linecross with asset finance funding over the past four years, and will now provide them with a further suite of bespoke funding and financial products, to boost growth and help the business deliver its revenue targets.
“We’re proud to be by the side of such an ambitious privately owned UK manufacturer, which plays a key role in the supply chain of so many iconic British brands.”
