Member Article

Better Bathrooms raise £10m and create 500 jobs

Manchester-based business Better Bathrooms has announced 500 jobs will be created UK-wide, following a £10m investment from the Business Growth Fund (BGF).

Over the next five years, Better Bathrooms said it will provide a major boost to the UK economy and retail industry as a result of the funding.

BGF will take minority stake in the firm as part of the capital growth investment, as well as joining the board.

Paul Gilbert, non-executive chairman of The Gym Group and former financial director of Matalan, will also join Better Bathroom’s board as non-executive chairman.

David Colclough, investment director on BGF’s Manchester team, commented: “Better Bathrooms was the first UK business to carve out a position as a true multi-channel retailer of bathroom products. A leader in its space, it offers one of the largest and best value ranges in the UK.

“The growth that this company has demonstrated over the last twelve years has been outstanding. But Colin, who is an extremely passionate and driven entrepreneur, is keen to do it on a much bigger scale.

“This is where BGF comes in and it is a great example of how growth capital can really help a business with ambitions to expand.

“This investment also shows how we can flexibly structure the financial arrangements such that we best meet the needs of the shareholders.”

Better Bathrooms hopes to use the investment to accelerate growth, explore alternative source supplies and expand into new territories and parallel markets.

Colin Stevens, founder of the company, added: “I’m thrilled to have BGF come on board with Better Bathrooms. For me, BGF were the ideal partner as we share the same values, with company growth and the creation of jobs being of paramount importance.

“I believe that with BGF’s investment and expertise, we will be able to take the company to the next level, expanding our factories and product lines, and ultimately hit our future growth target of £200m.

“Of course for our customers this will allow Better Bathrooms to continue with their motto of better prices, better service, better bathrooms.”

The firm has grown its annual turnover from just over £1m in 2007 to £32m in the last financial year, with ambitions to reach £40m in the next year.

Global market researchers, Mintel, recently released data that shows bathroom fixtures and the fittings retail market is currently valued at £1bn annually, and is expected to continue to grow.

Better Bathrooms is the sixth business to win backing from BGF in the North of England, and brings the investment total to nearly £30m in the region, while across the country this figure comes to £140m.

This was posted in Bdaily's Members' News section by Miranda Dobson .