New manufacturing facility to fast track export growth for Endura
Ambitious Scottish cycle clothing company, Endura, has secured funding from Scottish Enterprise and HSBC to support a £2.4 million investment in a new manufacturing facility that will help the company grow its international trade.
The new Livingston facility at Starlaw Park will boast state of the art manufacturing equipment and stock management systems that will allow the company to increase export trade activity and actively target the lucrative US and European markets.
The funding package secured consists of £235,000 in Regional Selective Assistance (RSA) from Scottish Enterprise, together with a £1.15 term loan from HSBC, and will result in 15 new jobs at the company’s new facility.
Founded by managing director Jim McFarlane in 1992, Endura designs and manufactures specialist cycle apparel for road, mountain and commuting biking. Employing 75 staff, the company is the UK market leader in its sector and also exports to the USA, Australia, New Zealand, Russia and South America.
The company is focused on growing its export performance and has increased sales from £1.7 million in 2005 to £15.5 million last year and aims to grow turnover from an estimated £18 million this year to around £22 million in 2013.
Mark Tate, head of commercial banking for HSBC in Scotland, said: "Endura is a prime example of a forward thinking and innovative Scottish business which has successfully seized opportunities to accelerate its growth at home and overseas.
"Having banked Endura for the past year, we were delighted to provide this funding package to facilitate the next phase in the company's development. The new facility will undoubtedly see the business go from strength to strength, and we look forward to continuing to support their growth aspirations."
Jim McFarlane, managing director and founder of Endura, said, “This funding means we can accelerate our growth plans and take advantage of opportunities now. To have both HSBC and Scottish Enterprise working together and understanding our ambitions has made the process of securing this funding very straight forward.
“There’s been a lot of negative headlines about the availability and cost of growth financing recently. But my experience has been that the funding is available if you have the right support to access it and can demonstrate the commercial benefits that the funding will deliver.”
Product innovation continues to play a huge role in driving Endura’s business growth, with the introduction of cycle helmet and bicycle-specific luggage planned for later this year. Similarly, the company is expanding its international trade opportunities, with European and US sales forecast to grow by 50 per cent this year and export sales comprising over half its revenue by 2014.
Scottish Enterprise works intensively with Endura through its account management programme. This approach enables the account manager to build a specialist account team representing specific areas of specialist business support to help deliver the company’s ambitious growth plans.
Over the last five years, the account team for Endura has delivered assistance in entering overseas markets, product development, recruitment of a graduate placement, branding and marketing support, as well as the Regional Selective Assistance grant and property relocation support announced today.
Christina Noonan, Endura’s Scottish Enterprise account manager commented, “Endura’s success is down to strong leadership and vision from the management team, innovative products developed to meet customer needs, and a desire to embrace business growth opportunities at home and abroad.
“Financing growth is a challenge for most companies in the current climate. To help our companies overcome these challenges, we’ve committed to work with them to help secure the bank funding they need. Endura’s funding package demonstrates that this innovative approach works, and we’ll continue to work like this with our customers to enable them to access the finance they need to grow.”