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Tue November 24 2020

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Bank support for Teesside contractor

18 Nov 13 Building services contractor LJJ has secured a new seven-figure finance package from HSBC to help support its growth plans.

Steady growth has seen the Stockton-on-Tees company’s turnover rise towards £45m this year.

LJJ was founded in 1991and has 120 direct employees. It works predominantly in the northeast and, from an office in High Wycombe, the southeast. It specialises in the design, installation and commissioning of mechanical and electrical services in all types of commercial, industrial, public sector, retail and communal housing projects within the public and private sector. Recent business won includes several major hotel contracts.

Commercial director Lee Rennison said: “We have seen a significant increase in both the number of enquiries and the value of contracts, so we are expecting turnover to be between £40m and £45m this year at a conservative estimate. We have purposefully not pitched for certain business over the past couple of years because competitors have been driving down margins and we didn’t want to be involved with that process.

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“However, there has been a certain degree of consolidation in the industry with some competitors pulling out of the marketplace to focus on other areas and also some competitors going out of business, hence, margins are starting to return to a more sensible and realistic level in the industry.

“We wanted a finance package that was bespoke to our needs and HSBC was the only bank that was able to deliver that for us, taking into account our strong balance sheet and excellent credit history. This facility now gives us the confidence to continue to grow the business and the comfort to know we will be able to accommodate new contracts.”

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