A successful medical, care and beauty products distributor aims to triple its turnover within the next four years by expanding into new markets at home and abroad thanks to backing from Clydesdale Bank.
Econo-Group was set-up in 1994 as a next-day mail order supplier to doctors, dentists, vets and beauty salons with products including couch rolls, hand towels, spray tanning accessories and nail varnishes.
With invoice finance support from Clydesdale Bank in Bury St Edmunds, the expanding Long Sutton based-company, is now aiming to sell to wholesalers as well as develop its operation abroad.
Managing director, Alistair Ashworth said Econo-Group, which has around 20,000 customers across the UK, is re-structuring its business to expand into previously untapped areas.
“We import our products from China, Malaysia, Italy, Poland and the Czech Republic so always have 99 per cent of items in stock because we pride ourselves on the speed of our distribution and providing quality products at reasonable prices,” he said.
“Our turnover at the moment is £4 million and our growth plan is to reach £12 million in 2016.
“We are setting up a wholesale division which is a new market for Econo-Group to explore so we need to invest in the infrastructure of our business, and our software, to target specific markets in Western Europe.
“We are constantly taking on staff to pick the products and pack the orders in our warehouse, and we now have 32 people throughout the business after taking on five new members of staff in the last few months.
“We plan to start our exporting division in August, and this move to Clydesdale Bank allows us to purchase additional stock, advertise in new markets, and kick-start our business growth.”
Richard Chapman, business banking partner at Clydesdale Bank’s Financial Solutions Centre (FSC) at Moseleys Farm in Fornham All Saints, said the invoice finance facilities that Econo-Group were using would help the company achieve its business plan.
“Invoice finance allows companies to borrow against their invoices prior to the money from their customers reaching their account, which is important when they need to replenish their stocks,” he said.
“This means Econo-Group will be able to expand with approved working capital in place as they look to supply customers in Western Europe as well as the UK.
“Alistair and his team run a great business which is used by a wide variety of customers and I am sure they will achieve their goals.”