Press release
Derby firm puts growth in the picture
A Derby-based supplier of CCTV equipment is set to boost turnover by £2million following the launch of a new division.
Located on Pride Park and employing 30 people, PTS Security Ltd provides surveillance equipment to some of the UK's largest organisations, including Tesco.
Now the company is looking to tap into growing demand for more effective security systems amongst smaller companies. The market for CCTV is expanding at seven per cent annually, driven by increasing crime rates.
The new division, PTS Distribution, is expected to increase the Group's total turnover from £4million to £6million over the next 12 months.
To help fund the launch, the PTS Group secured a flexible asset based lending facility from Lloyds TSB Commercial Finance. Commercial Finance will lend against the business' sales ledger to improve cash flow and free up funds to ensure the firm has the capital required to fulfill contracts quickly.
PTS is an authorised distributor for Pelco, the world's largest producer of video surveillance equipment. In addition to selling their CCTV systems, PTS provides 24 hour technical support.
Paul Yates, managing director at PTS, said: Each year, half of all UK small businesses are a victim of crime. CCTV is a powerful deterrent and as the equipment becomes more affordable and more effective, the number of companies installing cameras has increased. We've recognised the growth potential within the SME sector, so this is a sensible move forward for us.
PTS has significant working capital requirements due to the scale and number of projects that we're involved with. Asset based lending meets our needs in this area, but also gives us far more financial flexibility than a conventional overdraft facility because it frees up cash quickly. Our ongoing relationship with Lloyds TSB Commercial Finance has contributed significantly to our success over the years.
Chris Ball, regional manager at Lloyds TSB Commercial Finance, said: PTS has spotted an excellent opportunity to use its high level of expertise and grow market share considerably. The sector is incredibly buoyant and the UK is leading the world in the use of CCTV technology for security and surveillance. The four million cameras currently in operation throughout Britain already account for 20 per cent of the global total, and this is expected to rise even further over the next few years.
Asset based lending is the ideal tool to help PTS take advantage. It has given the management team the ability to get its new venture quickly off the ground, whilst also providing the required amount of working capital so that the existing business continues growing in tandem.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
