Second loan sparks growth strategy for 24-7 Electrical Group
Sale-based 24-7 Electrical Group has announced a £1 million
increase in turnover this year to £7 million.
Darnhall Limited, trading as 24-7 Group offers
a range of electrical design and installation services for
warehousing and cold storage facilities, production facilities,
commercial developments, high rise residential, and retail
customers including Tesco.
The business was set up in 2010 by directors
Andrew Hawes and Jason Lawler, with commercial director John
Matthews joining the company in 2012.
24-7 Group has funded its expansion over the
past few years with two loans from Northern England based finance
providers, FW Capital.
FW Capital provided an initial loan of
£250,000 in 2012 which was subsequently fully repaid. 24-7 Group
returned to FW Capital last year, following the launch of NPIF – FW
Capital Debt Finance which is part of the Northern Powerhouse
Investment Fund, for a further loan of £500,000 to help deliver its
five year growth plan.
Director John Matthews said: “We would not be
where we are today without the funding from FW Capital and the
Northern Powerhouse Investment Fund.
“We needed to make a long-term commitment to
invest in resources, so it was very important for us to find a
long-term investor. Other types of lender do not tend to
provide the certainty of funding that we
required, as they can pull their facilities at any time. In an
industry like ours where there are peaks and troughs, it’s crucial
that we have an investment partner that really understands our
“The first loan helped us to build our client
base and take on more contracts and people which has seen us grow
from a £1 million turnover business to £6 million last
“We needed £500,000 to fund our five year
growth plan but wanted a loan not equity finance to retain full
control of the business.
“This has been used to recruit 11 new staff
and broaden our offering to include mechanical, heating, air
conditioning and plumbing services.
“Our plan is to reach a turnover of £9 million
next year, £15 million during the next three years, and £25 million
in five years.
“This ambitious growth strategy would not be
achievable without the funding from FW Capital and NPIF and we’re
really pleased to have them on board as our investment
FW Capital portfolio manager Melanie Taylor
said: “Darnhall is run by a very capable management team and the
business went from strength to strength following our initial
investment. We were delighted to provide the company with a
second NPIF loan and we are looking forward to continuing to work
closely with them.
“This is a good example of how we can help a
company through various growth stages and we’d like to encourage
any businesses that have received an investment from us whether
ongoing or repaid to speak to us again if they would like more
Sue Barnard, Senior Relationship
Manager at British Business Bank, said: “With specialist
electrical products and services on offer to a diverse client base,
the £500,000 funding provided by NPIF will allow the company to
look forward and deliver on its ambitious growth plans. We’re
looking forward to seeing the positive impact it has over the
coming years as a result of this round of funding.”
The Northern Powerhouse Investment Fund
project is supported financially by the European Union using
funding from the European Regional Development Fund (ERDF) as part
of the European Structural and Investment Funds Growth Programme
2014-2020 and the European Investment Bank.