Vehicle electronics specialist in gear for growth with finance deal

A Birmingham business that specialises in the design and production of innovative vehicle safety and security products has secured a seven-figure finance package to invest in new product development and expand its portfolio.

Driven by an increase in demand for its products – which range from cameras and digital video recorders to reverse parking solutions – Motormax will use the funding to invest in its operations and take advantage of economies of scale to reduce unit costs, lower margins and keep more product in stock.

A foreign exchange forward buying facility will also enable Motormax to better manage its foreign exchange, especially pertinent given the company designs products in the UK but manufactures them in China. The foreign exchange facility will enable the business to further fund the manufacture and import of new goods.

Motormax grew by 140% in 2018 and is set to turnover £4.6m this year.

James Haycock, owner of Motormax, said: “We provide products to large fleet owners, as well as through retailers such as Halfords and a network of installer partners throughout the UK. Our production and supply chain means it is vital that we have the cash flow available to buy, produce and import products. By working with Daniel Williams, our Relationship Manager at HSBC UK, we’ve been able to secure the critical funding required to meet increased customer demand and expectations.”

Mark Lupton, area director for business banking in Greater Birmingham, HSBC UK, said: “We’re committed to helping SMEs in the West Midlands realise their ambitious expansion plans and Motormax is no exception. The car accessories market is poised for further growth and this funding will allow the company to grow its customer and product portfolio without being adversely affected by manufacturing and import costs and exchange rates. We wish them all the best for the future.”