Pictured (left to right): Andrew Gaunt (business development director, Invoice Finance, Lloyds Bank), Khush Johal (mid corporate relationship manager, Lloyds Bank), David Austin (chairman, Linecross), Paul Wheelwright (trade director, Lloyds Bank)Midlands-based
Linecross, a UK engineering company and manufacturer of moulded plastic components for vehicles in the prestige automotive, transport, leisure and off-highway markets, is looking to grow its turnover by 50% to £50 million in the next three years, after securing £12.5 million of funding from
Lloyds Bank.
The company is a supplier to some of the UK’s leading vehicle brands, providing a broad range of exterior and interior parts from its two sites in Cannock and Rutland and was purchased in 2003 by its current owners, David Austin and Stuart Fry, as part of a management buyout.
Since then, the two directors have grown Linecross’ turnover from £6 million to more than £34 million, and increased its headcount from 100 employees to 295. Through a strategy of innovation and investment, the ambitious firm now has plans in place to reach a turnover of £50 million by 2026. To realise this growth, Linecross has accessed funding facilities from Lloyds Bank to purchase a range of ‘state of the art’ machinery which will not only extend its capacity, but also provide a broader process offering, enhanced productivity, quality and reliability as well as energy efficiency.
Among the acquisitions are two large Cannon vacuum forming machines and two five-axis CNC machines. As the machinery is purchased from Europe and paid for before delivery, Linecross has utilised asset finance, trade finance, a capital import finance facility and invoice finance totalling £10.5 million, supporting the business’ cashflow to ensure healthy working capital and headroom are maintained.
The machinery investment is supplemented by the addition of another 25,000ft
2 factory unit adjacent to its existing Cannock facility and a number of key appointments to strengthen its management team.
Linecross is also investing in sustainability with the installation of 914 solar panels at its manufacturing site in Rutland. The panels will be capable of generating 325,000kWh annually, saving over 60 tonnes of CO
2 emissions each year, as well mitigating a proportion of the recent significant energy cost increases.
David Austin, chairman and financial director at Linecross, said: “It has always been in Linecross’ DNA to grow through innovation, investment and collaborative relationships with our trading partners. Lloyds Bank and its focus on both UK manufacturing and the ‘green agenda’ have proved to be the right financial partner to help Linecross realise both the next phase of our financial aspirations and support our transition to a sustainable future.”
Khush Johal, relationship manager at Lloyds Bank, said: “Linecross makes a significant investment in new machinery year-on-year to maintain a high-quality end product for its clients and future-proofing the business. As a firm targetting rapid and sustainable growth, it is essential that it maintains a strong cashflow, enabling the business to maximise on commercial opportunities in its market.”
He concluded: We have supported Linecross with asset finance funding over the past four years, and will now provide the company with a further suite of bespoke funding and financial products, to boost growth and help the business deliver its revenue targets. We are proud to be by the side of such an ambitious privately owned UK manufacturer, which plays a key role in the supply chain of so many iconic British brands.”