John Miller Ltd opens new headquarters with the help of asset finance facility

A Dumfries haulage firm is set to open a new seven acre headquarters in Lockerbie after securing a funding package from Lloyds TSB.

Established in 2000, John Miller Ltd currently has a turnover of £15 million and a fleet of 70 vehicles.

The company is split into two divisions, with its general haulage business, based in Longtown, Carlisle, moving sawn timber south from Scotland to England, and returning mainly with concrete products and steel for the construction industry.

John Miller Ltd’s second division, based in Dalbeattie, specialises in transporting round timber from forests in South Scotland and Cumbria to paper and saw mills in the local area. Last year the company delivered one million tonnes of wood.

The business acquired another haulage company in 2010, a deal which Lloyds TSB Commercial Finance provided an asset finance facility for circa £1 million for the purchase of the company vehicles. Lloyds TSB Commercial Finance also provided John Miller Ltd with European Investment Bank grant funding in respect of this and subsequent asset finance deals.

John Miller Ltd experienced subsequent organic growth and turned to Lloyds TSB for a further funding boost to expand to a new site in Lockerbie as an additional base for both divisions.

Lloyds TSB Commercial Finance has provided hire purchase services to the business for over 10 years to enable it to buy equipment and vehicles upfront, without affecting day-to-day working capital. To fund new vehicles and equipment, Lloyds TSB Commercial Finance has provided a further £500,000 facility.

Lloyds TSB Scotland has also partnered with John Miller since the company’s inception and is providing new funding to support the purchase of the land and to facilitate the construction of the additional depot.

The new headquarters, which are set to open in January 2012, will enable the business to gain easy access to the M6 motorway and the extra space will also help facilitate future growth.

John Miller, managing director and founder of John Miller Ltd, said: “We are always on the look-out for new ways to expand and since the acquisition last year, which Lloyds TSB helped fund, we found we needed a further cashflow boost to finance our additional base.

“The new site will provide regional benefits for both divisions of the business, as it allows easy access to the South, increasing our productivity, as well as providing a larger haulage depot with added space for potential future expansion.

“We have worked closely with Lloyds TSB over the years to support our expansion plans and day-to-day working capital and, as a result of this robust working relationship, we are in a strong position for future growth.”

David Anderson, regional manager, Lloyds TSB Commercial Finance, said: “The business has good geographical coverage with the Cumbria and Galloway bases, and the new headquarters in Lockerbie will provide excellent transport links to English markets.
 
“The hire purchase facility which has been utilised by the business since it was established has enabled it to invest upfront in modern vehicles, ensuring its fleet of lorries, flat bed trailers and curtainsider trucks remain top of the range. Crucially, it also means the business’ day-to-day cashflow is not impeded and that it can pay for the equipment in a series of scheduled instalments.”

Graham Dunlop, relationship director, Lloyds TSB Scotland, said: “John Miller Ltd has grown steadily over the years, down to an ambitious management team, a long-term expansion strategy focused on acquisitions, and the support of a tailored finance package.

“We have worked closely with John Miller to put this new line of funding in place which will support the company with day to day requirements, and also ongoing growth, complementing the hire purchase facility. The firm is now in a strong place to further capitalise on an improving market, both in Scotland and England.”