One of the best-known names in the North East home improvement industry is set to continue its renaissance with the support of a new six-figure investment from the Finance For Business North East Growth Fund.
Warmseal has been the North East’s largest supplier and installer of windows, doors, and conservatories for more than 25 years, and provides a wide range of products to customers right across the region.
Earlier this year, after the original Warmseal business had been placed into administration due to issues relating to its commercial division, LTWF Ltd bought the company’s successful retail and trade operation, saving 37 jobs in the process.
And as part of implementing its subsequent development plans for the business, it has now worked with NEL Fund Managers, which runs the Growth Fund, to bring in a six-figure investment to help it secure year-on-year turnover growth of up to 20 per cent.
As well as helping to provide the working capital required to develop its windows, doors and other products, the investment will also be used to upgrade Warmseal’s IT systems through a move to a cloud-based solution, as well as enhancing its marketing activities.
LTWF Ltd was advised on the investment process by Graham Cornforth at Haines Watts Corporate Finance.
The Warmseal management team is aiming to access what it sees as untapped potential across the North East, and to do so by going back to the traditional values and high customer service standards that were behind the company’s success in the first place.
Managing director Brian Pears says: “Warmseal was never a hard sell company, and thrived by treating its customers properly, something that is at the centre of everything we’re looking to do.
“Committing to this approach has really buoyed our team, and with the trend to improve rather than move still popular in the North East property market, we think there’s enough potential right across the region for us to grow at a good rate in the years to come.
“We have a very strong product range that we know appeals to our target audiences, and we believe the new systems and marketing activities we’re putting in place will help us grow the business by between ten and twenty per cent every year.
“NEL Fund Managers have been around in the region for a long time, and they’re known and trusted for how they operate. Their team were very professional and we’re very pleased to have won their backing.”
David Thomas, investment executive at NEL Fund Managers, adds: “Warmseal retains a very strong brand reputation across the North East, and the management team has a clear vision of how they’re going now to translate this into sustainable commercial success.”
Graham Cornforth at Haines Watts Corporate Finance says: “After assisting LTWF Ltd to acquire Warmseal, securing investment for growth was always the strategy. We assessed all funding options, but it was clear early on that NEL Fund Managers were very supportive of the business plan.
“We were delighted to be able to advise Brian and we look forward to seeing the business deliver its ambitious growth plans, continue to invest in the North East and create jobs in the area.”
Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.
Managed by North East Finance, it will see £125m of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund 2007-13 over a five year period.
NEL is looking to make around 130 investments over the five-year life span of the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.
For more information about NEL’s investment criteria, visit www.nel.co.uk or contact the investment team on 0845 111 1850.
The ERDF 2007-13 programme is bringing over £300m into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.