Funding provider delivers for Birmingham-based logistics company
Contact Transport Ltd – based in Garretts Green, Birmingham – has received a £500,000 investment boost from Finance Birmingham, a national provider of funding to SMEs.
As well as offering a series of funding streams targeting the small and medium-sized business market across all industry sectors in the West Midlands, Finance Birmingham runs national grant and loan funding programmes in specific sectors.
It can provide loans, mezzanine loans and equity of up to £3 million, depending on the circumstances. Funding can be used for any purpose, but the key underlying requirement is future growth and job creation.
During the last 12 months, Contact Transport has seen a 60% increase in turnover to nearly £20 million. The new funding will enable the company to continue its expansion cycle and take on new contracts within the ‘Final Mile’ division. It already works for major clients including Amazon and UPS.
Formed in 1980, the company began life as a small courier business for airline agents, delivering and collecting freight in and around Birmingham Airport. It added overnight parcel deliveries to its operations in the late 1990s and – with the rise of internet shopping – started working within the lucrative ‘Final Mile’ sector over the last decade.
Contact Transport now offers a portfolio of services, including contract hire, logistics management, warehousing and haulage, operating up to 400 vehicles per day across the UK and employing 400 staff.
Neil Hughes, managing director at Contact Transport, said: “By investing in our experienced workforce and utilising the right mix of vehicles, Contact Transport provides clients with an all-round logistics package, rather than just specialising in one field, which we believe is unique in this sector.
“Finance Birmingham’s funding will enable the company to strengthen its offer by supporting existing jobs in the region, and adding a further eight direct posts – plus many more indirect roles – over the next three years.”
The investment was secured from the £9 million programme, managed by Finance Birmingham, to support SMEs from all business sectors across the Greater Birmingham and Solihull LEP area.
Ian Fairclough, investment director at Finance Birmingham, added: “Contact Transport has grown rapidly over the past few years, primarily through winning large contracts in the more profitable Final Mile division; delivering parcels from regional depots to homes and businesses for customers such as UPS, DX and Amazon.
“We are backing a strong and experienced management team. The £500,000 investment will support the significant growth of the business by funding the working capital requirement as the business continues to grow.”
Posted on: May 7th 2015