Doncaster Cables sparks growth

ELECTRICAL cable manufacturer Doncaster Cables has extended its product lines and plans to target emerging markets after securing a £6.5m funding package.

The business manufactures electric cables at its 320,000 sq ft factory in Bentley, Doncaster and has obtained an asset based deal from Lloyds TSB Commercial Finance.

In response to growing customer demand, the company needed to ramp up its production line and to fund further expansion, embarked on the deal with Lloyds, which includes a £1.5m stock funding line secured against the value of the firm’s finished goods and provides additional borrowing capacity.

As part of its growth strategy, Doncaster Cables, which was established in 1984, has used the funding to enhance its product range by purchasing state-of-the-art machinery that will enable it to supply products to new overseas markets.  

It is also focusing on exporting to new global markets including mainland Europe, the Far East and Libya, where it said there is growing demand for high quality cabling.

Director, Chris Mallinson, said: “We have generated significant sales growth and we are now approaching new markets over the next few months, particularly in the Far East where development work is increasing and businesses require cabling that they can trust.

“With the funding support of Lloyds TSB Commercial Finance, we are able to capitalise on increased client demand whilst also enhancing the products we can offer to customers.”

The business has an annual turnover of £40m and employs 124 people.

Regional director at Lloyds TSB commercial finance, Jon Adams, said: “The volume of sales Doncaster Cables was receiving was stretching its production capacity and the funding facility we provided gave the business the necessary headroom to purchase additional equipment and products and meet increased customer demand. We are looking forward to working with the firm as it builds on its recent success and targets growth opportunities in global markets.”

Relationship director at Lloyds Bank commercial banking, Andy Dunlop, said: “Doncaster Cables is a great example of a UK manufacturing business that is achieving significant growth against what has been a challenging economic climate.

“Lloyds Bank is committed to supporting the development of businesses in the sector and has delivered more than £700m to manufacturing firms over the past six months as part of a £1bn commitment set in September 2012 and is on course to beat the target.”