Spa business simply expands into Birmingham after new finance package

A STAFFORDSHIRE beauty salon and spa operator is expanding into Birmingham after securing a £700,000 finance package.

Tamworth-based The Beauty Developments Group has been backed by Lloyds Bank Commercial Finance to support the opening of its new spa in Birmingham and the launch of its new online sales directory. The firm has also secured an additional £290,000 in the form of a loan from Lloyds Bank Commercial Banking.
 
Established in 1994, the group has an annual turnover of £3.5m and employs 55 people. The business manages international salon brands such as Bodyography Professional Cosmetics while running its own salons and spas under the, ‘Simply THE’ brand, which includes Simply THE Spa at the Belfry Hotel in Sutton Coldfield and Simply THE Salon on Tudor Row in Lichfield.
 
As part of its growth strategy BDG identified an opportunity to open a new spa in Birmingham city centre to offer luxurious facial and massage treatments. After securing funding support from Lloyds the business opened its second Simply THE Spa at the Radisson Blu Hotel on Holloway Circus.
 
To take advantage of the growing online market the group also launched ‘Your Salon Store,’ a new e-commerce facility where customers can buy cosmetic products and accessories such as tanning, nails and hair removal products.

Lloyds provided the business with an invoice finance facility and a stock funding line to generate the necessary working capital to launch the new directory and the accompanying mail order catalogue.
 
As part of its long-term expansion plans the business intends to franchise its ‘Simply THE’ brand in 2014 to give other salon and spa owners the opportunity to join The Group.
 
Chris Woodhead, CEO of The Beauty Developments Group, said: “With growing demand for luxurious relaxation treatments opening a second Simply THE Spa was the next logical step for the business to help achieve our ambitious growth plan.
 
“We’ve already seen considerable traffic to our online directory and we are constantly reviewing the products available there to customers.”
 
Hugo Hanlan, client manager at Lloyds Bank Commercial Finance, said: “The Beauty Developments Group operates in a competitive industry and has worked hard to establish a reputation as a leading provider of high quality salon and spa facilities throughout the Midlands.

“The business’ funding package includes a stock finance facility allowing it to borrow against the value of products at its Tamworth distribution centre. This provided the borrowing capacity to drive the launch of its new online store.”