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Solar launches new business venture

Published 23rd December, 2010 by Neil Nixon

Solar launches new business venture

Preston-based The Solar Group (UK) Ltd is launching a new venture, Solar School Care Ltd, and is set to double turnover in the next year after securing a £150,000 asset based finance facility from Lloyds TSB Commercial Finance.

Solar School Care Ltd provides cleaning services to local and national customers across the public and private sectors, focusing on schools and government buildings nationwide. Established in 2009, the company has experienced rapid growth and currently employs 130 members of staff. The firm found it needed a cashflow boost to capitalise on growing national demand and to launch Solar School Care to service the growing number of school-specific contracts it is taking on.
The Solar Group (UK) Ltd approached Lloyds TSB Commercial Finance, which provided an asset based finance facility to release the value of its growing order book and allow the firm to use this capital to purchase new equipment, employ more staff and continue to win new contracts.

The Solar Group (UK) Ltd, which includes trading divisions Solar Training Services Ltd, Solar School Care Ltd, and Sandafloor Ltd, is now on track to double turnover to £1.75million by the end of next year, with hopes to treble this figure in two years time.

Dave Ashmore, managing director at Solar, said: “Since starting the company we have experienced fantastic demand for both the floor cleaning and the contract cleaning services we offer. We were eager to capitalise on this demand by branching out nationally, as well as diversifying our service by launching a dedicated school cleaning firm. However, we found that in order to sustain growth and secure contracts, we needed a steady flow of working capital. The asset based finance facility from Lloyds TSB Commercial Finance is ideal as it is flexible and grows in line with our expansion. The certainty of funding means we are now in an excellent position to reach our turnover targets over the next three years.”

Geoff Webster, regional manager at Lloyds TSB Commercial Finance, said: “Solar has done extremely well in its first year of trading and this is testament to the company’s strong business model, and its recognition of a gap in the market for high quality cleaning services. Asset based finance is an ideal form of funding for Solar as it grows in-line with sales, releasing cash as and when needed to fund expansion and as a result, the company is in a strong position to capitalise on opportunities in the local area and nationally.”

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