Electrical firm planning for growth thanks to loans from Northern Powerhouse

24-7 Group

Sale-based 24-7 Electrical Group has announced a £1m increase in turnover this year to £7m.

Darnhall Limited, trading as 24-7 Group, offers a range of electrical design and installation services for warehousing and cold storage facilities, production facilities, commercial developments, high rise residential, and retailers.

The business was set up in 2010 by Andrew Hawes and Jason Lawler, with commercial director John Matthews joining the company in six years ago.

24-7 Group has funded its expansion over the past few years with two loans from Northern England based finance providers, FW Capital.

FW Capital provided an initial loan of £250k in 2012 which was subsequently fully repaid.

The company returned to FW Capital last year, following the launch of NPIF – FW Capital Debt Finance which is part of the Northern Powerhouse Investment Fund, for a further loan of £500k to help deliver its five-year growth plan.

John Matthews said: “We would not be where we are today without the funding from FW Capital and the Northern Powerhouse Investment Fund.

“We needed to make a long-term commitment to investment in resources, so it was very important for us to find a long-term investor. Other types of lender do not tend to provide the certainty of funding that we required, as they can pull their facilities at any time.

“In an industry like ours where there are peaks and troughs, it’s crucial that we have an investment partner that really understands our business strategy.

“The first loan helped us to build our client base and take on more contracts and people which has seen us grow from a £1m turnover business to £6m last year.

“We needed £500k to fund our five-year growth plan but wanted a loan not equity finance to retain full control of the business.

“This has been used to recruit 11 new staff and broaden our offering to include mechanical, heating, air conditioning and plumbing services.

“Our plan is to reach a turnover of £9m next year, £15m during the next 3 years, and £25m in five years.

“This ambitious growth strategy would not be achievable without the funding from FW Capital and NPIF and we’re really pleased to have them on board as our investment partners.

Sue Barnard, Senior Relationship Manager at British Business Bank, said: “With specialist electrical products and services on offer to a diverse client base, the £500k funding provided by NPIF will allow the company to look forward and deliver on its ambitious growth plans.

“We’re looking forward to seeing the positive impact it has over the coming years as a result of this round of funding.”

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