Aldridge engineering firm targets expansion after funding deal

AN Aldridge engineering business has been able to purchase its rented premises after securing a new funding deal.

Formrite Precision is now focussing on fresh growth after being backed by Lloyds Bank Commercial Banking to the tune of £469,000.

Formrite, established in 1959, is a manufacturer of specialist tooling, test rigs and special purpose machinery. The company’s main clients are in the aerospace and industrial gas turbine industries and also include Rolls Royce, for which it supplies tooling for engine manufacture and service support.
 
The business had rented its 25,000 sq ft premises on Westgate for many years and wanted to purchase the site to allow it to expand its supply and service capabilities within the testing rig market.
 
It approached Lloyds Bank, which provided the funding through the Funding for Lending Scheme (FLS), in which customers receive competitively priced lending.
 
Following the purchase of the premises the business, which currently employs 30 people, has created two new jobs. It now plans to build a new dedicated test rig department and install energy efficient lighting and compressed air systems throughout the building.  
 
Geoff Neale, owner of Formrite, said: “We wanted the freedom to be able to modify the building to suit the growing needs of the business but, because we were only renting the premises, we weren’t in the position to make any significant changes.
 
“Purchasing the premises has worked out more cost effective for us in the long term, and the Lloyds Bank team has been instrumental in helping us to pursue our growth plans. We now plan to expand the business in the next five years and create further local jobs.”
 
Oliver Dallaway, Relationship Manager at Lloyds Bank Commercial Banking, said: “Formrite Precision is a well-established and highly regarded business, with clear ambitions for growth. The purchase of its existing rented premises marks an important milestone as it now has a secure platform to continue to grow.
 
“At Lloyds Bank we are committed to providing support and guidance to manufacturing businesses like Formrite Precision that are at the heart of the region’s economic growth and development.”