Electrical wholesaler Kew Electrical is aiming to open two new branches a year following strong sales growth and a £16m support package from Lloyds Bank Commercial Banking.
The business, which is based in Brighton, is kickstarting an ambitious growth strategy, with plans to grow its 25-strong branch network. It has recently opened stores in Gloucester and Bath and a store in Cirencester is scheduled to open this summer.
The expansion programme is being launched after Kew Electrical secured a £16 million invoice finance facility from Lloyds Bank. The firm is also considering acquisition opportunities as it seeks to grow its geographic footprint.
The business has an annual turnover of £78 million, which increased by 14.4% last year. This is forecast to rise to £85 million by next year.
The company was launched in 1996 by managing director Geoff Kerly and now employs a team of 341.
Geoff Kerly, Managing Director at Kew Electrical, said: “We’re committed to growing our branch network across the UK and sharing the team’s expertise with a wider audience. We’ve enjoyed strong growth over the past year due to rising demand for new houses, which is delivering a great boost to tradesman across the region, and in turn, our business.
“The invoice finance package from Lloyds Bank gives us the flexibility to create the right growth strategy for our employees and customers. It’s an exciting time for Kew Electrical with new store openings scheduled. We’re also on the lookout for acquisition opportunities that match our culture and customer-focused approach.”
Steven Munt, Associate Director, Global Transaction Banking at Lloyds Bank Commercial Banking, added: “Kew Electrical has achieved significant success and built a great reputation for itself within the trade community. Geoff and the team are keen to accelerate their growth plans and the facility we’ve provided should enable this to happen, creating more jobs in the process.
“Too many businesses across the South of England are unable to invest in growth as funds are tied up in working capital – £168 billion in total across the region. More needs to be done to unlock this, which is why we’re committed to providing solutions as part of our wider plan to help Britain prosper.”
