Flooring group lays down plans for £4m expansion following funding deal
A COMMERCIAL flooring company is set to invest almost £4m in new premises in Worcestershire following a funding deal.
Contract Flooring Group will invest £3.9m to construct new premises at Bromsgrove Enterprise Park.
Royal Bank of Scotland has backed the firm’s expansion with a £2.705m loan and invoice discounting facility.
Work is now underway on the new project, which comprises two warehouses and office units to house the firm’s Contract Flooring Solutions and Poplar Carpet Centre divisions.
The former will occupy 32,631 sq ft, with the latter extending to 11,000 sq ft to include a trade showroom and upstairs office space.
The group, which currently employs 180 people, anticipates the relocation will create a significant number of new jobs and the target is to increase staff levels to 250 by summer 2017.
The group fits floorcoverings including carpets and hard flooring for blue chip national house builders across the Midlands. It is expanding rapidly across the UK and the acquisition of development land to construct new premises comes on the back of new contract success.
With the additional growth, the group decided now was the right time to consolidate its two existing site on Saxon Business Park and Harris Business Park, both in Bromsgrove, into one facility.
Steve Day, managing director, Contract Flooring Group said: “We are growing at a compound rate in excess of 30% per annum so by consolidating our current sites and constructing larger premises we are looking to accommodate the next four years of expected growth.”
He said the group’s turnover was growing – last year it recorded £9.1m – and this year it is on target to exceed £12m.
David Robinson, Head of Manufacturing Midlands at Royal Bank of Scotland, said: “We have worked closely with the team at Contract Flooring Group for over four years and the business has enjoyed rapid growth.
“We have funded both sites on Harris Business Park and Saxon Business Park and are delighted to support them with this next exciting phase of development.
“It was only two years ago the business relocated to a new 10,000 sq ft site on Saxon Business Park and their success is highlighted with these new plans to a build premises more than triple its current size.”
