Partner Article

Motorhog completes North West acquisitions

Doncaster-based motor salvage and parts firm, Motorhog, has moved into the North West market following the acquisition of two new sites.

Funding from Lloyds Ban Commercial Banking helped the firm to lease a site in Oldham and bought another in Blackburn from Broadbent Autos.

The acquisitions give Motorhog a foothold in one of the country’s largest vehicle recycling markets and will help to drive new business opportunities and service many of the company’s contracts.

Following the latest acquisitions, Motorhog operates from 18 trading locations across the UK, of which 15 hold waste management licenses, including the 50 acre storage site at its Doncaster head office. Earlier this year the company opened new sites in Peterborough and Newcastle after receiving funding from Lloyds Bank.

Expanding into different geographic locations provides Motorhog with access to new sources of supply and is a key catalyst for revenue growth. The business is forecasting turnover growth of more than 30% to reach £32m by the end of the current financial year.

Richard Martin, Motorhog’s Managing Director, said: “The North West is a key market as it contains large volumes of supply, particularly in and around the Greater Manchester area.

“Our growth strategy is based upon acquiring good sites in key strategic locations across the UK and both of these locations fit that category. Once again Lloyds Bank have shown their confidence in our business model by providing financial backing for our plans.”

Lloyds Bank Commercial Banking provided Motorhog with a £1m funding package to finance the acquisitions and boost working capital ahead of the expected growth in turnover.

Tom Rumboll, Business Development Director at Lloyds Bank, said: “Motorhog has a well-designed and successful growth plan. The move into the North West makes sound commercial sense and will further enhance their position as the leading independent operator in the market.”

This was posted in Bdaily's Members' News section by Tom Keighley .