A DUDLEY manufacturer has expanded and bought new machinery to increase productivity thanks to a £250,000 financial package from Lloyds Bank.
DGS Supplies Limited manufactures and distributes road and health and safety signage for construction companies across the country.
It also supplies and embroiders workwear.
The firm has experienced increased demand for its products, in part due to continued infrastructure investment seen nationwide, meaning the business needed more space to keep up with orders.
It looked for larger sites to relocate to, and found a 10,000 sq ft site on Thornleigh Trading Estate, off Blowers Green Road, which is double the size of the firm’s previous unit on Vauxhall Street.
DGS Supplies secured a £189,000 loan from Lloyds Bank to fund the purchase, and moved into the refurbished unit in October - a £54,000 working capital facility was also provided by Lloyds Bank’s Commercial Finance team to fund the purchase of a new CNC machine, which mass produces signs.
The new machine has been installed in the new warehouse and as a result of the increased capacity, the firm has won its first national account with Homebase.
Following the expansion, the business’ annual turnover is set to increase by more than 30 per cent from £1.5million, and two new members of staff have joined the now 10-strong workforce.
Franc Moscato, director at DGS Supplies, said: “We are always looking for new ways to enhance the quality of the products and services we can offer existing and prospective clients.
“Moving from our rented site means we now have the space to accommodate more advanced machinery and have the capacity to realise expansion plans in the future.
“Lloyds Bank has fully understood our ambition to grow our firm in this way, and has provided the support and funding we need to take the necessary steps to actively grow our client base and deliver long-term success.”
Adam Hartshorne, relationship manager at Lloyds Bank Commercial Banking, added: “DGS Supplies has experienced continued growth, and it was clear that it had out grown its previous premises.
“The purchase of the larger site was a natural step in the firms’ plans as it looked to expand its order books.
"The extra space and quality of the products the firm makes has helped it win the contract with Homebase, which provides a good platform to build the business’ reputation further.
“Our team’s desire to build relationships and have a clear understanding of our clients allows us to help firms like DGS Supplies fulfil their growth potential.
“This is part of our wider commitment to small and medium sized firms, and our pledge to increase our net lending to SMEs by a further £1billion this year.”