Powering Ahead

Expansion ahead

Overseas expansion sparked by £1.5 million funding facility

Power Testing is looking to expand overseas after successfully completing its biggest projects to date. It was commissioned for a £1.3m project for the Ministry of Defence at Shoeburyness, near Southend and a £700,000 job at Heathrow Airport. Now it hopes to establish an outpost in the Middle East.

OPPORTUNITY KNOCKS

Power Testing won two huge contracts but needed additional funding to buy the materials needed. The transformative deals were worth a combined £2 million and the firm approached Lloyds Bank Commercial Finance for funding support.

Lloyds Bank Commercial Finance was able to provide a £1.5m invoice discounting facility, which allowed the company to borrow against the value of outstanding invoices, strengthening its working capital, which managing director Chris Park said put the business on a firm footing for the future.

We found that we were winning some big contracts, but we couldn’t fund them. That’s when Lloyds Bank Commercial Finance stepped in to help.

Chris Park, managing director, Power Testing

LOOKING EAST

Now Chris is planning a visit to Dubai and Abu Dhabi later this year with a view to setting up a branch of Power Testing there. Turnover has grown from £1.8m 10 years ago to £5.89m for the year to May 31, 2013. The aim is now to achieve annual revenues of £10 million within two years.

Working in partnership with Lloyds Bank Commercial Finance allowed Power Testing to fulfil these contracts and effectively increase the net worth of the business by one third to date in 2013.

Chris at Power Testing secured some large electrical contracts at the end of 2012 and came to myself to see if Lloyds Bank Commercial Finance could assist in extending funding against these.

Leigh Simpson, client manager at Lloyds Bank Commercial Banking

LOOKING EAST

WHEELS KEEP TURNING

The business was founded in 1966 and purchased by Steve Park and Michael Sansom in 1989. Turnover has grown from £1.8 million 10 years ago to £5.89 million for the year to May 31, 2013. Now majority owned by Chris Park, with support from Lloyds Bank Commercial Finance his aim is to achieve annual revenues of £10 million within two years. The company, which has also completed projects in Finland, Ireland, France and Kuwait, has a £3.6 million order book and has recruited its 50th employee in Chris Park’s son Ellis Pearce.

Without this facility, the business’ wheels would have stopped turning.

Power Testing Managing Director Chris Park