A Plymouth-based specialist concrete firm is targeting larger contracts and is set to double turnover this year, after securing an asset based lending (ABL) facility from Lloyds TSB Commercial Finance.

Established in 2007, JLM Formwork provides tailored concrete pouring and forming services to meet the diverse needs of construction companies across the South West.

Operating from premises in Devonshire Meadows, the business offers a specialist service for highly bespoke and technically challenging projects, and is currently involved in a landscaping scheme at the University of Plymouth.

The firm is set to take its £550,000 turnover to over £1.1 million in 2009 after recruiting four new employees and securing a place on the tender lists of a number of national construction firms.

To support its growth and boost cash flow, management secured a funding from Lloyds TSB Commercial Finance.

The £50,000 factoring facility enables the firm to advance the value of its sales ledger and bridge the gap between completing new orders and receiving payments from clients.

The company was introduced to ABL by its banking partner Lloyds TSB Commercial.

Chris Larkin, director at JLM Formwork, said: “We’re currently operating in an extremely tough market, but we are taking a proactive approach to growing our business by diversifying our skills base and bidding for larger contracts.

“We’ve been with Lloyds TSB Commercial since we became a limited company, as we felt it was important to have a banking partner on board that supports our ambitions.

“The additional working capital provided by the bank’s ABL division is vital to boost cash flow and enable us to take on bigger contracts, secure new orders and increase turnover. The speed with which a suitable finance package was developed was impressive and has ensured we can continue expanding rapidly.”

Roger Edwards, regional manager for Lloyds TSB Commercial Finance, said: “JLM Formwork is quickly establishing a strong reputation in the South West construction industry by providing a niche forming and pouring service.

“By releasing the value of its existing assets, the firm is maintaining a good level of working capital and is therefore in a strong position to seize opportunities as and when they arise.”

Andrew Blanchard, relationship manager for Lloyds TSB Commercial, said: “The construction industry has been one of the hardest-hit sectors by the recession, so it is great to see a small firm that is investing in its future, implementing its expansion plans and hiring new staff.

“Lloyds TSB Commercial is committed to helping SMEs by providing ongoing support and guidance, as well as lending facilities.”

July 2009