BGF builds investment record in improving construction sector with £2.5m provided to leading specialist interiors subcontractor
In June 2014, BGF made its first investment in a South Yorkshire based business with £2.5m provided to leading specialist interiors subcontractor Horbury Group. At the point in time, BGF had invested c. £30m in the county to date via its Leeds and Manchester based local investment teams.
This was also the third investment that BGF had made in businesses growing in the wake of an improving construction market. In May 2014, BGF invested £10m of growth capital in TCL Holdings Ltd, an external property services business; and in 2012, it backed high specification scaffolding services specialist, SHS Integrated Services with £5.4m of growth capital.
Headquartered in Rotherham, Horbury Group was founded in 1993 by current Group Managing Director Trevor Wragg as a specialist subcontractor for the construction industry. It comprises three principle subsidiaries; Horbury Building Systems, Titan Interior Solutions, and MWS Joinery, and has a combined turnover in excess of £50m and a workforce of 800 people. Headquartered in Rotherham, Yorkshire, Horbury Group also has offices in London and South Wales.
The company provides internal fit out services including partitioning, ceilings, joinery and flooring to major construction companies including Carillion, Balfour Beatty, Kier, and Shepherd Construction. It has successfully installed a range of products and internal structures to public and private buildings that include student accommodation, apartment, hotels, schools, hospitals and major retail and leisure developments. Projects include the Queen Elizabeth Hospital, Birmingham; Liverpool Library; the Business School at Manchester Metropolitan University, Reading Railway Station; and Park Hotel in Nottingham.
With the UK construction market showing positive signs of growth, BGF’s investment will enable Horbury to tender for larger, and a greater quantity of, projects. As a result of the investment, the company expects to significantly increase its workforce in the year ahead.
Trevor Wragg, founder and Group Managing Director of Horbury, commented:
“This is great news for the company and everyone associated with it. This funding means that we can act on growth opportunities that we have identified as part of a recent strategic review of our business and market. Our core trades are seeing demand as the construction industry is returning to growth. Last year we opened two new offices in the South West and in Central London primarily to improve our service to clients in these areas. This investment has paid off, and contributed to the strong growth we achieved over the last 2 years throughout England and Wales. It’s great to know that the enthusiasm and confidence we have for the business and the future is shared by our backers.”
Andy Gregory, BGF’s Regional Director for the North of England, commented:
“Horbury Group is one of a small number of businesses in its sector with the size and scale needed to operate nationally; and as the recovery of the construction industry continues, it is well placed to take advantage of a growing pipeline of work.
“It is one of several businesses that we have backed which are acting on exciting growth opportunities generated by an improving UK construction sector. This is exactly where BGF’s growth capital is intended to help – enabling businesses to capitalise on opportunities that they might otherwise be unable to take full advantage of.”
Neil joined BGF in November 2011 as an Investor based in Manchester. In this role, Neil is involved in all aspects of the investment process from origination through to completion, and supports companies throughout the investment hold period.
Neil has gained private equity experience at ANZ Private Equity in Sydney and latterly with Infinity PE in the North West, where he was involved in executing and managing a number of investments across a range of sectors.
He began his career at PWC and worked in both the Manchester and Sydney offices in the Transaction Services division. Neil is a qualified Chartered Accountant and holds a BA (Hons) in Economics from the University of Sheffield.
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