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30/09/2014

Genpower Secures £1.5M finance package to support HQ move

Genpower, the Pembrokeshire-based UK distributor of Hyundai Power Equipment, has secured a £1.5 million finance package from HSBC, Finance Wales and the Welsh Government to support the acquisition of its new 110,000 sq ft headquarters.

The company recently completed the acquisition of the former Cambrian Windows site on the Haven Waterway Enterprise Zone and the move will enable it to consolidate its operations on one site, increasing its warehousing and workshop capacity, and open a new training facility, showroom and assembly line.

The company secured the finance from HSBC’s Cardiff and South East Wales Commercial team in a deal managed on behalf of the bank by International Commercial Manager Anthony Couzens. The finance has been allocated from HSBC’s £400 million SME Fund specifically for companies from Wales.

As part of the package, Genpower also secured a six-figure loan from Finance Wales as well as a repayable business finance loan from the Welsh Government to support the move, which is expected to create 35 new jobs.  Genpower also qualified for the two per cent interest-rate reduction Finance Wales can offer businesses located in enterprise zones.

Genpower has the sole UK and Ireland distribution rights to sell Hyundai power products such as energy efficient portable generators, water pumps and air compressors to its growing dealer network.  The need to move to larger premises was essential when Genpower was also awarded a similar exclusive agreement to sell Hyundai garden products and Power tools. HSBC supported this contract via a separate funding package last year.

Genpower has experienced strong growth over the past two years, doubling turnover to £3.3 million this year, and has plans to grow that to over £6 million by 2016. As well as driving its Hyundai business, it will increase the manufacture and assembly of its own range of generator products following the move.

Roger Pratt, HSBC South East Wales Area Commercial Director, said: “We have worked with Genpower over the past eight years and it has enjoyed significant growth over the past two years. The move to larger premises was a natural progression for the company and this new site gives the company the capacity to accommodate its expansion plans.”

Genpower Managing Director Roland Llewellin added: “We are delighted with the new premises. It has transformed our business, with greater efficiencies, huge potential for growth and better working conditions. We are seeing a big increase in demand for the Hyundai diesel standby generators ahead of this winter’s inevitable power cuts, both from businesses and home owners and the new building and additional funding from HSBC, Finance Wales and Welsh Government has allowed us to gear up to meet this demand.”
 
Economy Minister Edwina Hart said: “Genpower has some exciting plans for future growth which include creating jobs locally and I am pleased the package of funding from HSBC, the Welsh Government and Finance Wales is supporting its expansion in the Haven Waterway Enterprise Zone.  I am also pleased that Genpower is benefiting from the Welsh Government’s Enterprise Zone business rates relief initiative designed to support companies in our Enterprise Zones around Wales.”

Raymond Walters, Investment Executive at Finance Wales, said: “Genpower has grown steadily since it was established, building a strong reputation and cementing its position in key markets.  Moving to new, energy-efficient premises will enable Genpower to supply a larger customer base more cost effectively.  This is Finance Wales’ second investment in Genpower and we’re pleased to continue to back this ambitious family run business as it expands and takes on more staff in Pembrokeshire.”