Packaging business unboxes rapid expansion following seven-figure backing

A packaging manufacturer is set to ramp up production and nearly double its turnover with the support of a seven-figure finance facility.

BM Packaging produces corrugated cardboard boxes and cartons, selling millions each year to businesses across the UK and throughout Europe via its network of trade partners.

A key local employer, its 48 staff operate from its site in Netherton, Huddersfield.

Demand for BM’s products has been steadily increasing over the past four years, and has recently been spurred on by the ongoing e-commerce boom, which has seen the business significantly grow its order book and take on new customers.

Last year, BM expanded its physical footprint by a third, taking on an extra 27,000 sq ft facility to expand production.

Its team needed to free up additional capital to support investment in further expansion.

The company is now supported by a seven-figure invoice finance facility from Lloyds Bank allowing the firm to almost double its turnover this year with forecast growth from £8m to £15m.

It is also enabling the company to invest in new machinery and further strengthen its cash position.

Chris Latham, managing director, said: “Demand for packaging and shipping cartons has never been higher, as the pandemic pushed online retail sales to record levels.

“With this new facility, we now have the capacity to increase our production levels and ensure we are best placed to support our trade customers as the market continues to expand.

“Looking ahead, with Lloyds’ support, we are on track to continue to grow organically and sustainably, helping to create more local jobs and boost the regional economy.”

Chris Parker, broker development manager at Lloyds Bank, said: “BM Packaging is a leading example of a local business that has been able to capitalise on growing global demand for its products, playing a key role in keeping supply chains moving by ensuring its trade customers have ready access to high-quality products.

“The business’s track record speaks for itself, and we’re excited to witness the team’s continued growth in the coming year.”