Herefordshire-based Pontrilas Group Limited has secured an £8.3 million refinancing package from Lloyds TSB to enable the company to continue investing in its two trading subsidiaries.

Established in 1947, Pontrilas Group is a £26 million turnover, third generation, family-run business that provides timber and timber-based products to a wide range of industries, including construction for new build projects, repair and renovation, as well as the manufacturing and distribution sectors.

Pontrilas Timber and Builders Merchants Limited operates from a 24-acre site in Pontrilas and distributes timber beams, fencing and decking.

Pontrilas Group Packaging Limited, based in Llanelli, manufactures timber-based packing products.

In order to support its ongoing plans, Pontrilas Group invited Lloyds TSB to provide an integrated funding package.

Lloyds TSB Corporate Markets provided £1.8 million of facilities and worked alongside its asset based lending (ABL) division, Lloyds TSB Commercial Finance, which provided a £6.5 million funding package.

As a result of the new funding, the company expects to expand, develop new markets and continue to invest in the growing renovation sector, which now represents almost half of the total building work carried out in the UK.

Edward Hickman, managing director at Pontrilas Group, said: “Simon, Darren and their teams at Lloyds TSB took time to really get to know us and our business, which means that the facilities we have been offered are tailored to our exact requirements.

“This will enable us to meet our commitment to invest in our business and to continue providing customers with quality products and efficient customer service.”

Darren Baker, relationship director of Lloyds TSB Corporate Markets, said: “We are delighted that we have been able to support Pontrilas to invest and to help its continued development and expansion.

“Despite the current challenging credit environment, our involvement clearly demonstrates that we are still supporting strong businesses and high quality management teams across the Midlands.”

Simon Woodcock, Director of business development at Lloyds TSB Commercial Finance, said: “Pontrilas Group has over 50 years of experience in manufacturing and the timber trade, so we are confident of its ability to continue to invest and capitalise on the trends in the renovation sector - an industry which is predicted to grow by £4 billion this year.

“Management was keen to refinance with a flexible ABL facility and, by borrowing against its existing assets, the firm now has the cash flow required to execute its growth strategy.

“Pontrilas Group’s expansion plans demonstrate it is a proactive and innovative business and we look forward to continuing our partnership with management to support its growth strategy.”