Backing businesses to expand

Backing businesses to expand

Supporting a recruitment entrepreneur to grow

Backing businesses to help them reach their growth potential is a vital part that Lloyds Banking Group plays in supporting SMEs.

Tower Staff Construction provides the building industry with qualified members of staff for permanent and temporary assignments. Established in 2011 by managing director Gary McMullen, the firm now has more than 5000 construction professionals on its database.

Gary had two aims: to make his business independent, and to increase turnover by 25% by investing in new premises.

Becoming independent

Gary originally worked as a crane operator until he was made redundant in 2010 and decided to open his own business. His idea was to create a specialist construction wing within an existing recruitment firm and set about identifying the right opportunity.

He succeeded and in 2012 had a turnover of £1.4 million whilst working with the support of another firm. With newly-secured contracts and a growing construction staff database, Gary decided to turn Tower Staff Construction into a standalone business in its own right in March 2014.

To achieve this, he invested heavily in a new database, which allows speedier searches for candidates and quicker response times.

Increasing turnover

Following an increase in temporary staff placements, Gary approached the Group for a £250,000 business loan. Lloyds Bank Commercial Banking provided an invoice discounting facility, allowing  funding against business sales invoices.

As the construction industry continues to improve, Gary expects Tower Staff Construction’s turnover to increase by 25% in 2014 to £1.75m.

Gary explained “Since we pay temporary workers on a weekly basis, cash really is the lifeblood of our business. Without an invoice discounting line, we wouldn’t be able to pay our workers and continue to grow the business. It has taken pressure off of our cashflow, allowing us to invest in expanding the firm.”

Our aim is to continue to grow our turnover and the number of workers we are placing, whilst remaining committed to providing clients with a high standard of personal service.

Gary McMullen, Managing Director, Tower Staff Construction

Solid reputation

Peter Bould, Regional Manager, Lloyds Bank Commercial Banking, said: “Gary has seen impressive growth and has established a solid reputation in a niche market. As the construction industry recovers, the firm will be able to take advantage of new projects and demand.

“This kind of invoice finance can be particularly useful for recruitment agencies that rely on paying temporary workers on a weekly basis. We look forward to supporting Tower Staff Construction as it continues to grow and firmly establish itself as a leader in the market.”

The new invoice discounting facility will allow the firm to secure its long-term expansion plans.

Peter Bould, Regional Manager, Lloyds Bank Commercial Banking

Solid reputation

Scaling up

Lloyds Bank Commercial Banking, as part of Lloyds Banking Group, is committed to helping businesses to scale up.

In our 2014 SME Charter we pledged to grow our lending to SMEs by at least £1bn,net, this year. By September we had already met this target and we have made a further commitment to grow our lending to SMEs by £3bn net over the next three years.

Businesses are the lifeblood of the UK, that's why turning ideas into reality creates jobs, investment, and a dynamic future.

Footnotes
  1. Tower Construction

  2. Lloyds Banking Group Q3 IMS

  3. Lloyds Banking Group SME factsheet