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GRS Roadstone grows following Lloyds Bank investment PDF Print E-mail
Monday, 15 December 2014

Nuneaton-based GRS Roadstone, the UK’s largest independent supplier of construction aggregate and waste removal, has announced a significant expansion following a £3.1million investment from Lloyds Bank.

As part of the deal, a £2 million loan from Lloyds Bank Commercial Banking has helped GRS Roadstone to reacquire 50% of its sister enterprise, GRS Bagging, a leading supplier of bagged aggregate to the builders’ merchants sector. This transaction forms part of an arrangement with current owner, Lafarge Tarmac, and is designed to consolidate the firm’s position as a market leader in its sector.

A £1.1million investment from Lloyds Bank Commercial Finance has also led to a significant expansion of another arm of the business, GRS Production and Logistics, with the purchase of 50 new trailers to add to its 130-strong fleet, together with three new loading shovels.

Through the series of investments, the Production and Logistics team has recruited 50 new employees, helping to boost employment in the Midlands and Southeast. The business’ expansion also means that GRS Roadstone’s annual turnover is forecast to increase from £59 million to over £70 million, with GRS Bagging expected to see its annual turnover increase from £29 million to over £40 million.


The business also has a long standing £10million invoice finance facility in place, provided by Michelle Szynkarewicz in the bank’s Commercial Finance team, to help generate cash flow for the day-to-day working capital requirements of GRS Roadstone and GRS Bagging.

Richard Owen, Finance Director at GRS Roadstone, said: “The funding package from Lloyds Bank has enabled us to achieve a number of our key objectives, including the restructuring of the group to re-establish the bagging operation as a Joint Venture between GRS Roadstone and Lafarge Tarmac, together with the purchase of new trailers and equipment to support the growth of our production and logistics business.

“Through this investment, we have significantly increased both our capacity and our staff numbers, and this promises to result in a much greater turnover in the coming year, allowing us to accelerate our growth strategy. With Lloyds Bank’s continuous support it will allow the GRS Group to push GRS Bagging further into the South West and the North East of the UK and will help GRS Roadstone fund the growth of its waste services to the acquisition of landfill. We have seen our volumes rise by 10% per year and with the finance packaging that has been provided we can ensure that this can continue for a further three years.”

Sally Johnson, Relationship Director at Lloyds Bank Commercial Banking, said: “At Lloyds Bank Commercial Banking, we are committed to lending to businesses and helping the economy to continue its encouraging recent growth.

“GRS Roadstone is a successful business with plans to expand and grow further, and we’re proud to support its ambitious plans to lead within its sector whilst creating local employment opportunities.”

Andrew Slack, Regional Manager at Lloyds Bank Commercial Finance said: “Our investment in GRS Roadstone underlines our ongoing commitment to investing in local businesses, helping to create jobs by supporting firms with ambitions to expand.

“This investment has enabled the business to acquire essential new equipment and assets, further consolidating its position as the leader within its field.”

(Source - Lloyds Bank Press Release)  

 
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