JH Mechanical Services, the Stockton-based mechanical, electrical and water management services provider, is set to continue its rapid growth after receiving a loan from NPIF - FW Capital Debt Finance to help the company service its growing portfolio of clients and take on new staff.
Working with clients such as British Land, Durham County Council, and the Northern Education Trust, JH Mechanical provides a range of commercial and domestic installation, maintenance and repairs services across the North of England.
The company has grown rapidly in the past nine months, winning contracts with major organisations such as Newcastle University and Teesside University. This has led to a sharp increase in headcount, which has seen the workforce triple in size from 12 to 30 people.
The loan, from NPIF – FW Capital Debt Finance, managed by FW Capital and part of the Northern Powerhouse Investment Fund (NPIF), will provide the company with the cashflow to continue to provide the highest quality service to its existing clients.
The funding will also enable JH Mechanical to deliver larger projects, upskill its staff, and strengthen its apprenticeship programme to facilitate its next stage of growth.
Heather Heward, Director of Finance and Investment at JH Mechanical Services, said: “We are really pleased to secure this facility, which will help us to continue the strong momentum we have generated as a business. Having secured significant contracts with prestigious clients and increased our headcount to 30 people in a very short period of time, we needed additional cashflow quickly to help us deliver larger projects whilst maintaining the highest quality of service.
“FW Capital made the process really simple. This funding is essential in allowing us to futureproof the business, enabling us to continue to bid for new contracts and strengthen our team by creating local jobs for the regional economy.”
Dave Hawkins, portfolio executive at FW Capital, said: “At FW Capital we always aim to understand the business’ needs and act quickly to help them get finance when they need it. J H Mechanical has been successful in securing a number of key contracts in recent months as a direct result of their excellent customer service to clients. We are pleased to support their future growth and their focus on training and development for all employees.”
Tees Valley Mayor Ben Houchen said: “JH Mechanical is a fantastic example of our hard-working SMEs, which are the lifeblood of the Tees Valley. This funding once again shows the Northern Powerhouse Investment Fund is not only growing businesses but also helping them to support our apprentices and give local people the skills they need to succeed.”
Mark Wilcockson, senior relationship manager at British Business Bank, said: “NPIF continues to provide vital funding to growing Tees Valley businesses. We are pleased to continue this support, and are proud to work in partnership with FW Capital and our other appointed fund managers to make a real impact on business communities, creating jobs and strengthening regional economies to unlock the North’s potential.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.