A high-end County Durham roofing business is aiming to scale up and triple its turnover by the end of next year after winning a five-figure investment from the North East Small Loan Fund Supported By The European Regional Development Fund.
Aspect Facades specialises in the design, supply, installation and maintenance of sustainable cladding and roofing systems, and works with a range of developers and main contractors on residential, commercial and industrial projects around the North East.
The Shildon-based firm secured the £50,000 Small Loan Fund investment through regional fund management firm NEL Fund Managers which will provide the working capital it needs to take on and delivering more of their own projects.
And having recorded an annual turnover of £750,000 in the current financial year, the management team is now aiming to increase that figure to £2.5m by the end of 2020, with a number of new jobs expected to be created as the business grows.
Recent landmark schemes on which Aspect Facades has worked include the Jarrow Hub in South Tyneside and the City Green apartment building in Sunderland, and while it’s focus will primarily remain on the North East, it is also looking at opportunities outside the region as they arise.
The company took on its first apprentice last year and is already planning to recruit another one during 2019.
Daniel Parker, who set the business up two years ago with fellow director Andrew Howe, says: “We contribute to every part of a construction project’s life cycle, from early stage design and planning advice right through to completion, and our aim is to become a leader in the promotion of a more sustainable, safer and innovative building envelope sector.
“There is plenty of scope for us to grow by taking on projects within the North East and our focus will remain primarily on the region, but we’ll be happy to take on schemes elsewhere if the right opportunities arise.
“Having access to sufficient working capital is essential for growing businesses within the construction industry, and the sector faces specific challenges when it comes to attracting outside investment.
“The NEL team looked at us as an individual business and saw the potential we have for considerable growth in the next few years, which we’re now in a great position to start realising.”
Part of the £120m North East Fund and aimed predominantly at smaller SMEs, the £9m North East Small Loan Fund typically offers loans of between £10,000 and £50,000 to businesses in Tyne & Wear, Durham and Northumberland.
It is designed to assist with the creation of over 1,200 new regional jobs in more than 320 SMEs over the life of the fund.
Mike Guellard, investment executive at NEL Fund Managers, adds: “Aspect has secured a strong position in a lucrative niche market, and with high activity levels being sustained across the North East construction sector, it now has every chance to make even more progress.”
The overarching North East Fund will provide financial support for more than 600 businesses, creating around 3,500 jobs and delivering a legacy of up to £80m for further investment into the region.
NEL is also responsible for investing the £18m North East Growth Capital Fund, which offers unsecured investments of up to £500,000 to established businesses looking to realise their growth potential.