Bucks: Ercol gets Lloyds support for new machinery

An award-winning furniture manufacturer in Buckinghamshire has purchased new machinery to fulfil increased international demand for its products after securing a £491,000 hire purchase facility from Lloyds Bank Commercial Banking.

Ercol, established in 1920, designs and manufactures furniture and sells its products in major retailers such as John Lewis and Furniture Village.

Following an increase in demand both across the UK and overseas, the company turned to its long-term banking partner Lloyds Bank to invest in new machinery. The equipment will allow Ercol to increase its capacity and expand its product line, offering a greater range of products to customers.

International sales to Europe, Australia, Japan and the USA account for 5% of Ercol’s £20 million annual turnover. In the next eight years, the company plans to increase its turnover to £30million with exports accounting for up to 20% of its revenue.

Ercol employs 170 staff at its factory and showroom in Princes Risborough.

David Finch, finance director at Ercol, said: “We’ve enjoyed consistent growth of between 5–10 per cent each year for the past eight years, making it the perfect time to look to new international markets as we continue to grow.

“We’ve had a longstanding relationship with the team at Lloyds Bank and its support will be important to us as we look to increase our exports. We look forward to working with the team as we continue to grow.”

Colin Mason, relationship manager at Lloyds Bank, said: “Ercol is a great example of a business that has recognised the increased appetite for British-made products internationally. It’s encouraging to see the Ercol team make huge steps towards its growth plans. 

“We’re committed to helping Britain prosper by supporting small to medium sized businesses like Ercol increase their exports and to underline this we’re pledging to help 5,000 first-time exporters this year.”