Bank Funding Delivers New Space For Logistics Firm
Warwickshire based logistics firm XDP Ltd has reported annual turnover growth of 15 per cent to £27million since last year and has opened a new head office after securing a £3million funding package from Lloyds Banking Group.
XDP was established in 1995 and is the UK’s largest privately owned parcel carrier, delivering freight of all sizes to and on behalf of commercial customers across the country. Its central sortation hub is on Kingsbury Road and the firm’s fleet transports packages to its 80 depots located throughout the UK.
The business has achieved considerable organic growth in the past few years following the widespread growth of internet retailers that are generating large volumes of online sales. XDP’s ability to deliver packages of all shapes and sizes using its manual sortation system has allowed the business to secure numerous contracts with online firms.
Following this period of substantial growth, which has resulted in the business’ annual turnover increasing by £4million in the last financial year, XDP found that it had outgrown its office space. In order to purchase the 17,000 sq ft building adjoining its current site, the firm switched its banking facilities to Lloyds Bank Commercial Banking and secured an asset based finance facility from Lloyds TSB Commercial Finance.
After securing funding support from Lloyds Bank the firm bought and renovated the previously unused property, which now serves as XDP’s head office. The business has nearly 500 employees across its UK network and following this investment it has 105,000 sq ft of storage space available at its six acre headquarters.
XDP was advised on the refinancing exercise by Paul Stokes, director at Partner Commercial Finance.
Colin Walters, commercial director at XDP Ltd, said: “XDP delivers freight of sizes and shapes that many of our competitors do not cater for. This has allowed us to capitalise on the growth of the internet retail market and the fact you can buy almost anything online now.
“The business has grown substantially over the past few years, and when looking for a new lender the integrated approach from Lloyds Bank and the access to both traditional banking facilities and commercial finance products was fundamental, and we look forward to building a long-term relationship with the team.”
James Scarborough, director of business development at Lloyds TSB Commercial Finance, said: “The popularity of online retail has driven the organic growth of XDP, and the business has become the go to outlet for firms needing a logistics provider that can transport packages of any size. Asset based finance facilities are ideal for growing SMEs and this cashflow boost has enabled the firm to move into a much larger head office.”
Ian Fitzjohn, relationship director at Lloyds Bank Commercial Banking, said: “As XDP expanded it quickly outgrew its old office space, and our funding support has helped the business to grow its office presence whilst also creating more storage space to allow it to service additional customer orders. We are fully committed to supporting UK mid-market businesses and XDP is a typical example of such a business that is generating growth and expansion here in the UK.”