£500k loan for furniture fit out firm
Project:ff&e, a leading provider of furniture and fit-outs for student and rental accommodation schemes, is set for growth with the help of £500,000 loan from NPIF – Mercia Debt Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund.
The Halifax-based firm is on course to increase its turnover by 66% in the current year due to a series of new contract wins.
This loan will provide additional growth capital and allow it to expand its supply chain and create ten new jobs, after the business struggled to secure finance from mainstream banks who are reluctant to lend to construction-related projects.
Established in 2010 by Jamie Watson, Jim Shanks, Martin Corbett and Neil Dimmock when the company which employed them all collapsed. In recent years the business has taken advantage of the growth in student accommodation and ‘build to rent’ schemes and now employs circa 80 staff..
Nigel Barker, the company’s Finance Director, said the company was on course to increase turnover from almost £17m in 2018 to £28m this year. He added: “We have had some great opportunities this year and taken on a lot of new work, but we struggled to find finance through conventional routes. We were told the banks are nervous of the construction sector, although we are not, strictly speaking, a construction firm. The Mercia team listened to our needs and were both pragmatic and quick in finding a solution.”
Jonathan Craig, Investment Manager with Mercia, said: “Project:ff&e is a fast-growing firm that has built a nationwide reputation for its work. As this case shows, even successful businesses can face difficulties in accessing finance for growth. We are pleased to be able to support it by providing the funding it needs to take up these opportunities.”
Project:ff&e has recently worked on the Circle Square development in Manchester and St Alban’s Place in Leeds, and it is currently working on the new development on the site of the former Yorkshire Post building in Leeds.
