Haulage business McGregor Logistics use invoice finance to capitalise on growth opportunities

A Doncaster-based haulage business is set to double its turnover over the next 12 months after securing a £500,000 facility from Lloyds TSB Commercial Finance.

McGregors Logistics was established in 2004 by Keith Law and has grown from a local business providing haulage services to an international logistics provider which is partnered with Pall-Ex Group, the company founded by Dragon’s Den entrepreneur Hilary Devey.

Specialising in General Haulage and the transport of fruit and vegetables to wholesalers nationwide, the business now has a fleet of 60 vehicles and trailers, which collects and delivers around 5,000 pallets every week.

McGregors, which employs 35 people, also regularly deliver new turf for national stadiums such as Wembley, the Millennium Stadium, Croke Park in Dublin and the New London Olympic Stadium.

Since its inception, the business has grown steadily, from partnering with Pall-Ex in 2008 to expanding its offering internationally. The company moved to a new warehouse space in 2011 to diversify its services to also offer storage.

Over the past year, McGregors has seen demand for its proposition increase and turnover is currently £5.4 million. To capitalise on this upturn in customer requirement and enable the business to reach its target turnover of £10 million, it approached Lloyds TSB Commercial Finance.

The funder provided the business with a £500,000 facility which is based on its issued invoices. This ensures it can invest in growth turnover without cutting into its day to day cashflow.

As a result of the funding line from Lloyds TSB Commercial Finance, the business expects its turnover to double in the next 12 months.

Graham Hamilton, sales director at McGregors Logistics, said: “From a small family business, McGregors has continued to grow by capitalising on targeted opportunities and ensuring customer service is always to the highest standard.

“Demand for our services has grown significantly over the past 12 months and we expect this to continue over the next year.

“The funding from Lloyds TSB Commercial Finance has provided much-needed liquidity to ensure we are in a robust position to expand, whilst still having sufficient day-to-day capital to service our feet regularly and pay overheads.”

Peter Bould, regional manager at Lloyds TSB Commercial Finance, said: “From a small family business with one vehicle delivering fruit and vegetables locally, McGregors has developed in to an international company with a predicted turnover of £10 million over the next year.

“Transport and haulage businesses require strong day-to-day cashflow to ensure rising fuels costs can be met. We worked closely with the team to put in place funding which will release liquidity to invest in growth.

“This makes the finance more dynamic than a traditional loan, as its direct link to cashflow means it can grow in-line with sales.”