Progress to generate growth with finance

SPECIALIST power supply firm Progress Group has secured £4.4m of funding to help with its expansion plans.  

The business, based in Dewsbury, West Yorkshire, sells, rents and installs generators and emergency power equipment to industrial and commercial clients worldwide. 

Progress, established in 1956, has expanded into the UK’s leading dealer of FG Wilson diesel generating sets.

It is now looking to further expand its fleet of hire equipment and sees the rental sector as a growth area with customers who want to reduce capital expenditure.

Andrew Walls, of Ethos Corporate Finance, led the deal that involves a total of £4.4m of lending provided by HSBC Bank and HSBC Invoice Finance to replace existing facilities, and provide the required cash reserves that are needed to grow the business.

Progress Group managing director Adrian Kemp led a management buyout of the business in 2007 which bought the company from the founder’s family.

Mr Kemp said: “Some of our customers were severely impacted by the recession but we’ve still been able to outperform the market and we have been creative about developing the hire fleet proposition. 

“We are now positioned to expand and take the business forward both with more efficient newer hire generators, but also into more overseas markets with a great deal of potential.”

Mr Walls said: “Progress needed more liquidity to invest in the newest generator technology available to take advantage of the opportunities in the hire market and move forward after the recession.”

The funding package comprises a term loan of £900,000, a £1.5m asset finance facility and an international trade facility of £500,000 all provided by HSBC Bank. 

A working capital facility of £1.5m was also provided by HSBC Invoice Finance. Jonathan Simms of Clarion provided legal advice to Progress Group.

Keith Low, of HSBC Bank, said: “We are delighted to support the growth of Progress Plant. The structured nature of the funding on the right terms provides Progress with the facilities they need to allow them to expand, aided with our international expertise and global network.”

Progress Group employs 45 staff at its 40,000 sq ft workshop, head office, showroom and depot based in Dewsbury as well as 65 people across three other sites including Glasgow, Cleveland and London.