Builders’ merchant cements growth with £10.5m funding deal

A STAFFORDSHIRE builders’ merchant is expanding its workforce by a quarter and is set to increase annual turnover by 10% after securing a £10.5m funding deal.
 
Lichfield-based Walter Tipper has effectively completed the expansion by acquiring two businesses, purchased more than nine acres of land, streamlined its packaging services and purchased 12 new vehicles.
 
The family-run builders’ merchant, which operates nine sites and showrooms across the Midlands, supplies trade customers with services from tool hire to supplying bathroom and kitchen units.
 
The firm is now looking towards turnover of £50m after winning the backing of Lloyds Bank Commercial Banking.

The funding has allowed the firm to acquire two new businesses, Huthwaite Roofing Suppliers and G & J Builders’ Merchants in Rugeley. Six acres of land has been bought in Rugeley to support this acquisition, which will also be home to a new merchant depot.
 
To support its delivery services, Walter Tipper used a £2m asset finance line from Lloyds to buy 12 new heavy goods vehicles, including two-wheel tipper lorries and a volumetric concrete mixer lorry.  
 
Two new aggregate bagging plants have also been built in Lichfield after buying almost three acres of land using a £7m term loan from the bank.
 
The Lichfield site will allow the business to house machinery that will streamline the bagging of materials, such as building sand and decorative slate, ready for transport around the Midlands. It will also be home to the infrastructure required to operate the new volumetric concrete mixer lorry.
 
To support its ongoing growth and expansion, the bank has provided a £1.5m overdraft to manage day-to-day costs.
 
Joe Tipper, finance director at Walter Tipper, said: “As demand for materials grows in line with the growth of the construction industry as a whole, the business has been able to undertake the next stage of expansion by acquiring land and businesses.
 
“Lloyds Bank has offered excellent financial support to ensure we can supply products to customers who are securing more contracts post-recession, to allow our business to grow seamlessly in line with this demand. This facility also provides the flexibility to look for future land or business acquisition opportunities in our target locations.”
 
Charlie Allanson, relationship manager at Lloyds Bank Commercial Banking, said: “Walter Tipper Limited has demonstrated an excellent execution of a strong business plan over the past 12 months, and we have tailored a funding packaged suitable for the business’ current growing landscape.
 
“We are committed to supporting ambitious mid-market businesses like Walter Tipper, which are maximising opportunities in the region to create new job opportunities and prosper financially.”