A packaging manufacturer is set to ramp up production and nearly double its turnover as it responds to demand drummed up by e-commerce.
BM Packaging produces corrugated cardboard boxes and cartons, selling millions each year to businesses across the 海角视频 and throughout Europe via its network of trade partners.
Based in Netherton, Huddersfield, it employs 48 staff.
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Having steadily increased volumes over the past four years, the explosion in online ordering accelerated by the pandemic has seen the order book grow significantly, with new customers added. Last year, BM expanded its physical footprint by a third, taking on an extra 27,000 sq ft facility to expand production.
Chris Latham, managing director at BM Packaging, said: “Demand for packaging and shipping cartons has never been higher, as the pandemic pushed online retail sales to record levels. With this new facility, we now have the capacity to increase our production levels and ensure we are best placed to support our trade customers as the market continues to expand.”
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The team needed to free up additional capital to support investment in further expansion. And the company is now supported by a seven-figure invoice finance facility from Lloyds Bank, as it forecasts turnover lift from £8 million to £15 million. It is also enabling the team to invest in new machinery and further strengthen its cash position. Further job creation is also envisaged.
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Invoice finance helps bolster firms’ liquidity by allowing them to access up to 90 per cent of the value of unpaid invoices, often within 24 hours. It can play a critical role in ensuring businesses have the cashflow available to support continuous investment, without having to put plans on hold while waiting for payment.
Chris Parker, broker development manager at Lloyds Bank, said: “BM Packaging is a leading example of a local business that has been able to capitalise on growing global demand for its products, playing a key role in keeping supply chains moving by ensuring its trade customers have ready access to high-quality products.
“The business’ track record speaks for itself, and we’re excited to witness the team’s continued growth in the coming year.”