Manufacturing firm aims to grow £5m turnover with latest successful backing

A County Durham manufacturing company is poised to grow its current £5.16m turnover after an investment package from two leading finance providers backed a successful management buyout.

The buyout of North East Sheets and Panels Limited (NESP), based in Derwentside, was completed by Richard and Lisa Williams.

They secured investments of £200k, made up of £50k in equity and a £150k unsecured loan, from UK Steel Enterprise, the Tata Steel business support subsidiary, and £400k from IGF (Independent Growth Finance).

New managing director, Richard Williams, who has been with NESP since 2009, welcomed the investments and the involvement and support from Harlands Accountants and Swinburne Maddison LLP.

He said: “We are delighted to have secured this investment package and completed the buyout successfully,” he said. “We are very grateful to everyone involved - investors, accountants and our legal team - for all their efforts and commitment.

“We expect our workforce to grow in double figures over the next two to three years. We have already taken on two additional people and we are fortunate to have a high quality and skilled workforce available on our doorstep.

“The growth in the home improvement market is helping to drive our growth and the demand for bathroom cabinets is proving to be an area with particular potential. We are very pleased that our confidence in the future of the business has also been recognised by our investors.”

The company, which started in 1997, has a workforce of 32 and customers right across the UK, with a particularly strong presence in the North East, Scotland and Yorkshire.

The MBO will help it to grow its workforce and maintain its place as one of the leading manufacturers and suppliers of made-to-measure doors, panels, cabinets and worktops to customers in the fitted kitchen, bathroom and bedroom sector.

Glyn Davison of Harlands Accountants, based in Stanley, added: “We are very pleased to have supported Richard and Lisa Williams to secure their investment.

“Whilst these deals are not easy it’s so important that they happen and that the business continues to scale not only for the North East but for the benefit of the UK economy.

“We look forward to working closely with Richard and his team to help them deliver their growth plans and move forward.”