£1.2m investment in equipment to deliver growth

HSBC has provided a £1.9 million finance package to support the investment by JH Lavender at its Hall Green Works in Crankhall Lane.

The 97-year-old company has installed two 750-tonne fully automated aluminium die casting cells, adding to the eight existing high pressure machines it already operates.

The business has won a number of new contracts over the past 12 months with Jaguar Land Rover, helping to propel turnover from £12 million in 2012 to a forecasted £14 million this year.

Managing director Ian Timings said that JH Lavender was now benefitting from investing throughout the economic cycle. "We had a very strong 2008 and then the recession began to bite in early 2009, with sales reducing by some 60per cent. Regardless of this we made the decision to invest in the business and to expand the range of customers and sectors we could work with.

"We introduced a new 1,600 tonne fully automated die casting cell in 2010, which was also backed by HSBC, which allowed us to enter new markets, which kick-started our climb out of the recession through capital investment."

Mr Timings added: "We have certainly felt confidence returning to the economy and that is reflected by our order book and new contract wins. We have made the decision to significantly expand our production capacity; not only for our existing order book but also for work we anticipate winning over the coming months.

"HSBC has been a supportive partner since 1917, and it is fantastic to have a bank that works in conjunction with our business."

HSBC's Black Country and Shropshire Commercial team has provided the finance facility to support the latest investment and future planned investments, in a deal managed by senior commercial manager John Butler. The funding has been allocated from HSBC's £500 million small and medium-sized fund specifically for companies in the West Midlands. Ian Beesley at Baldwins Accountants provided support on funding the two new machines, which have been imported from Italy.

The company, which was founded to service the motorcycle industry by John Herbert Lavender, now employs 124 people and supplies castings to a range of industry sectors, including automotive, construction, oil and gas, medical and diesel-related industries. It generates around a quarter of its sales from the overseas market, with exports to Germany, France, Slovakia and the United States.

HSBC Black Country and Shropshire area commercial director Kevin Skym said: "JH Lavender is typical of the businesses HSBC identified in our recent report, which examined the growing investment appetite of UK SMEs. It is clear that confidence is on the rise and many of our customers are investing for growth, which is one of the drivers behind the launch of our £500 million SME fund for companies in the West Midlands. We have a clear desire to support ambitious, growing businesses such as JH Lavender."