A Fife railways maintenance firm has moved to larger headquarters after almost doubling its workforce.
North South Communication has added 50 employees in the past five months and is on track to increase revenues by £3 million to £7m in the current financial year.
The company was founded in Kirkcaldy in 2010 and has grown rapidly as a principal contractor for Scotrail, the main train operating company north of the border.
North South provides a range of services to Scotrail including joinery, lighting and electrical installations at stations across the Scottish network.
An increase in new contracts has led the company to move to a new, bigger headquarters building in Lochgelly which is better placed to house its workforce of 117 staff.
That figure is expected to grow by a further 25 in the months ahead, and the establishment of an apprenticeship programme has meant North South also needs space for in-house training.
The company is being supported in its expansion by Lloyds Banking Group through a new six-figure asset-based lending facility.
The arrangement designed to be flexible to accommodate the changing needs of the business as it grows will help the company bridge the gap between waiting to be paid for new contracts and hiring staff to deliver them.
“It is important to me that the firm reinvests skills into the community, encouraging the next generation of railway workers,” said Martin Fernie, North South’s faculties and building services manager.
“Through asset-based lending, we still have the freedom to take on new staff and projects without affecting the company’s cashflow. We are firm believers of creating full-time employment opportunities.
“We were introduced to Lloyds Bank through our accountant and have since gone on to secure a six-figure asset-based lending limit. This gives us room to manoeuvre when gaining new contracts or waiting for old projects to be paid.
“We estimate that we will increase turnover by more than £3m this year to £7m.”
North South’s tie-up with Scotrail has seen the firm install ticket vending machines on more than 100 railway platforms and provide customer information screens at 350 locations across the Scottish network.
It is also responsible for the upkeep of CCTV networks at 130 stations, and recently landed a high-profile contract to refurbish Gleneagles station in time for the Ryder Cup match at the nearby Perthshire resort in September.
Paul Dinnell, client manager at Lloyds Bank Commercial Finance, said the bank was pleased to be supporting North South’s growth spurt.
“An asset-based lending facility is often used to improve a company’s working capital and cashflow,” Mr Dinnell said.
“In this case, it is helping to support the growth ambitions and projects of North South Communications as well as an increase in staff numbers needed to deliver new contracts.
“This type of funding can be a useful tool for a firm with ambitions for growth,” he added.
“Asset-based lending can allow a business to stay in charge of its invoice and credit control processes and to free up cashflow through the facility.”