A Porth-headquartered utilities business is set for significant expansion as it looks to double sales in the next two years.
Arch Drainage, which provides advanced diagnostics and drain repair services for businesses and local authorities across Wales and the South West, aims to boost its turnover to £3.9m by 2022.
The expansion plans will see the firm create 12 new operations and back office roles in the next year, supported by a new £250k invoice finance facility provided by Lloyds Bank Commercial Banking.
The funding forms part of Lloyds Bank’s announcement that it expects to lend up to £1.1bn to support businesses in Wales in 2020.
Counting several major contractors among its client base, the business underwent a management buyout in 2019. It subsequently rebranded as Arch Drainage and has plans to add a new depot to its existing sites.
Commenting on its growth plans, Arch Drainage’s managing director Damian Tranter said: “Our business is entering a period of accelerated growth as we look to expand our offering in Wales and the M4 corridor.
“Having experienced sales director Dave Lewis join us recently, we’ve increased our new business pipeline and welcomed some key clients into our portfolio. With over £350k of new business invoiced since January, having the cashflow to invest in our growth is critical.
“The new facility from Lloyds Bank will give us the financial headroom to push on with those plans as we focus on the strengths of our core business and potentially add new satellite offices in Bristol and Swindon. In that respect, the team’s guidance and advice has been invaluable.”
Helena Warne, associate director at Lloyds Bank Commercial Banking, said: “Having been by their side through recent growth, the ambition of the new management team at Arch is second to none. With that in mind, I’ve every confidence that they will continue not only to boost the business’ financial performance but also its contribution to employment in South Wales and beyond.
“Invoice finance is a great way of releasing both working and investment capital and is just one of the many ways in which we are helping Britain prosper.”