£20m funding deal facilitates growth for key JLR supplier Sertec

A LEADING supplier to Jaguar Land Rover has secured a new £20m finance package to fund its ongoing growth.

Coleshill-based Sertec has secured the package from long-term banking provider Lloyds Bank. The working capital will accelerate its expansion plans and create hundreds more jobs.
 
Sertec is a global leader in a range of steel and aluminium manipulation and assembly processes, including transfer and progression presswork, tube manipulation, wire forming, welded and self-piercing riveted components.
 
The business has experienced substantial growth on the back of improved sentiment in the automotive sector which has resulted in significant demand from its clients, the largest of which is JLR.
 
The rapid expansion of the firm has attracted the eye of senior Ministers and in recent years the factory has hosted a speech by Chancellor George Osborne, while David Cameron also used the firm’s success as a platform to launch key Conservative tax policy in the run-up to the General Election.

Sertec’s strong growth has seen annual turnover exceed £200m for the first time, and the business now employs 1,200 people. It has created more than 300 jobs in the last 12 months, and is set to create hundreds more permanent job opportunities in the coming months.
 
To secure the cashflow to fund the business’ on-going growth plans, Sertec turned to banking partner Lloyds Bank Commercial Banking for support. The bank’s Commercial Finance team provided the working capital facility that will help the firm increase capacity to meet escalating demand and further grow its order book.
 
Sertec was established in 1962, and its head office is on Gorsey Lane. It moved to the 120,000 sq ft site called Wincaster House in early 2014 using funding support from Lloyds Bank Commercial Banking.
 
Martyn Hughes, Group Finance Director at Sertec, said: “The uplift in confidence and performance in the wider automotive sector has had a significant impact on our business, and we are employing more people than ever before, recording record turnover figures and expanding rapidly to meet productivity requirements.
 
“To fulfil our growth plans we needed an injection of working capital, and once again we turned to Lloyds Bank and the team provided the right funding solution for us. They have supported our business strategy from the start, and we look forward to working with the team as we continue to drive towards long-term success.”
 
Chris Pennick, Relationship Director at Lloyds Bank Commercial Banking, said: “It is ambitious mid-market manufacturers like Sertec which have a strong management team in place that are driving the region’s economic growth. As the business expands its workforce and productivity levels we will continue to work with Martyn and the management team to help the firm achieve its long-term growth ambitions.”
 
Mark Parsons, Head of Midlands at Lloyds Bank Commercial Finance, added: “Sertec has enjoyed considerable growth in recent years and needed a working capital facility that would enable it to build on this success and drive further expansion. We worked closely with our colleagues in the Commercial Banking team to identify the right funding solution for Sertec, and look forward to supporting the business as it continues to create multiple job opportunities for the local economy.”