Commercial finance helps bathroom equipment manufacturer expand

Marleton Cross Ltd, a leading manufacturer of shower trays, is set to expand its product line, with support from its long-term funding partner, Lloyds TSB Commercial Finance.

The business, which trades as The MX Group, manufactures all its shower trays at its 90,000 sq ft headquarters in Tewkesbury, Gloucestershire.

Established in 1972, Marleton Cross employs 170 people and supplies high street DIY stores and builders merchants with hundreds of different tray sizes and types, to suit all shower screens and enclosures.

To remain at the forefront of the evolving UK bathroom market, the business used its current £3.5 million finance facility from Lloyds TSB Commercial Finance to develop, design and manufacture shower cubicles to complement its current range of products.

Lloyds Bank Corporate Markets also provided working capital to support the transaction.

It is expected that the new range, which is set to launch in February 2012, will add approximately £4 million on to the company’s current £20 million turnover by 2013.

Bernard Robinson, Managing Director at Marleton Cross, said: “We recognised that as the leading supplier of shower trays in the UK, we were in a prime position to diversify our offering to include a full range of screens and enclosures to ensure we maintained our strong trading position.

“We have worked with Lloyds TSB Commercial Finance since 2005 and, with its funding support and valued advice from our client manager, we were able to invest in the new product line without our day-to-day cashflow being negatively affected.

“As a result of this continued support, we are looking at the next few years optimistically. We expect turnover to increase from £20 million to £30 million over the next five years.”

Nigel Roberts, Client Manager at Lloyds TSB Commercial Finance’s Large and Major Corporate division, said: “I have worked closely with Bernard and the team over the past six years to ensure they have always had access to finance in order to grow.

“It is fantastic to see a business launching a new product line against the current economic backdrop, while the company’s turnover predictions are testament to its management team’s hard work and innovative outlook.”

Ian Bristow, Relationship Director at Lloyds Bank Corporate Markets, said: “We’re delighted to continue our long-standing association with such a successful local company.

“The MX Group is seeing good growth in its market, which demonstrates that a strong management team with a well thought out business plan can succeed in challenging economic times.”