Ambitious growth plans for Xamax after further investment
CLOTHING manufacturer Xamax has revealed plans to double turnover in the next three years by making further investments in the business.
The Wakefield-based company intends to grow its current sales from £3.1m to £6m by investing £20,000 into an extended production area and £80,000 into new machinery, in order to meet demand for sportswear production and also introduce a new range focusing on schools.
Xamax secured a grant for almost £20,000 from the Leeds City Region Local Enterprise Partnership’s Business Growth Programme (BGP) (which is funded by the Governments Regional Growth Fund) earlier this year. It will allow the business to double capacity in its sportswear division.
Focusing specifically on the manufacture of Rugby League Football kits, the grant will cover 20% of the total cost of the investment into new equipment and a new mezzanine floor, allowing the company to expand the manufacturing space within the business as necessary.
Three new jobs have been created as a direct result of the fund, which will see this part of the business double capacity with a projected increase in sales from £250,000 in 2012 to £700,000 per year by 2015.
Graham Thompson, managing director of Xamax, said: “Through investing widely in modern production equipment and maximising workflow, we have positioned ourselves as a market leader against less productive and higher cost competitors.
“We believe that we have a distinct competitive advantage and the market place is big enough for us to use it to our advantage and substantially and sustainably grow over the next three years. We aim to do this by becoming a dominant player in the sportswear and personalised branded clothing marketplaces and develop better relationships with local schools and academies.”
The company, which employs 45 staff, said it anticipates it will increase overall turnover by 20% in the next 12 months and intends to continue to invest in order to maintain its growth strategy and hit overall sales of £6m by 2016.
Thompson added: “We would like to thank the Business Growth Programme and most importantly our local business advisors from Wakefield Council, who have made this application possible and have supported us throughout the process. Without support from the Leeds City Region Local Enterprise Partnership we couldn’t proceed with this investment in the business, which would subsequently hamper our growth potential.
“These funds are available for businesses like Xamax who have ambitious strategies for growth. We would certainly urge likeminded SME’s to come forward and consider the options that are available to them.”
This announcement comes just months after Xamax invested more than £500,000 into the refurbishment of a 3,000 sq ft unit used for offices, manufacturing and warehousing, as well as the design and build of Wakefield based customer facing retail outlet.
