A pallet refurbishment specialist is set for significant growth following the purchase of its premises in Newport.
Supported by an £860,000 funding package from Lloyds Bank Commercial Banking, Pallet Recycling South Wales has purchased its existing site on Corporation Road where it manufactures and restores more than 55,000 pallets each week.
Forming part of the bank’s £1.1billion lending commitment to businesses in Wales, the acquisition of the base will reduce the firm’s overheads by £65,000 each year, enabling it to invest in growing its client portfolio.
Since trading began in December 2017, the firm, which is headed up by Leighton Szade and Lyndon Ross, has seen its workforce increase from 11 employees to 30. Projected to turn over £5.2million this financial year, the company’s ambition is to double that figure in the next five years.
Leighton Szade, director at Pallet Recycling South Wales, said: “Within a relatively short time, we’ve tripled our workforce and are now taking the critical step of purchasing our premises outright to fuel further growth – something we couldn’t have done without the help and guidance of Lloyds Bank.
“The initial sales projection for our first year was £1million so to be on course to hit the £5million mark in our second year shows the potential of our business as we target additional clients in the logistics sector.”
Chris Ryan, relationship manager at Lloyds Bank Commercial Banking, said: “We’ve been by the side of the business since day one having held a relationship with the directors for 20 years. As such, we’ve seen first-hand how ambitious they are to drive Pallet Recycling South Wales forward.
“In just two years the company has grown significantly, both financially and physically, building a skilled workforce and creating jobs locally. Our mission at Lloyds Bank is to help Britain prosper, so we are extremely proud to be a part of their journey.”
