A Cwmbran online bathroom and kitchen retailer is set to triple its turnover after buying its own premises, with the support of a £680,000 funding package from Lloyds Bank Commercial Banking.
Plumbtap used the funding to purchase its 50,000 sq ft site on Avondale Business Park. Investing in the new property will enable the company to streamline its processes, including consolidating its four warehouses into one space, consequently saving £50,000 on overheads.
The increased space will also allow the firm to boost its capacity to meet rising consumer demand. As a result, it expects to achieve a turnover of £15million and double its workforce within the next five years.
Plumbtap was founded in 2011 by David Nash and sells kitchen and bathroom supplies and accessories via its online site. Over the past seven years the company has grown significantly, achieving a turnover of £5million and employing 25 people from across the local area.
“Buying the new site will help us to transform our business model, enabling us to make the vital efficiencies needed to drive growth over the coming years.
“Recently we’ve seen an increase in the number of people choosing to refurbish their homes rather than move. We recognised we needed to streamline our processes to ensure that we’re taking advantage of this trend, while continuing to offer the best possible service to our customers.
“Although we’ve been based at this site for four years, taking the steps needed to buy the premises was quite challenging, and we relied on the support of the Lloyds Bank team throughout. Not only did they supply the tailored funding needed to purchase the site, but they were always on hand to provide guidance when an issue arose.”
Chris Ryan, relationship manager at Lloyds Bank Commercial Banking, said:
“Plumbtap is renowned for providing a high-quality and efficient service to customers across the country.
“Buying the site will enable the company to build on this reputation, as well as allowing the firm capitalise on the opportunities offered by the rising number of consumers who are choosing to renovate their homes.
“It’s vital that ambitious companies across Britain have the support they need to prosper, which is why we’ll be increasing our net lending to small firms by £6 billion over the next three years.”