Family firm secures future with purchase of Croydon premises

A Croydon business has invested in its long-term future by purchasing a £1.75 million warehouse on Waddon Industrial Estate using a £1.2 million loan provided by Lloyds TSB Commercial.

Established in 1990, family-run Diamond Relocations specialises in commercial removals for clients in the UK and Europe, including FTSE 250 companies. It provides project management, warehouse facilities and a fleet of vehicles as well as additional records management, confidential shredding, crate hire, IT and fit-out services to ensure the smooth transition of large, complex organisations to new premises.

To assist with its clients’ carbon footprints, the company has invested heavily in green technology with the purchase of the latest industrial shredding machine.

The machine is capable of processing 2 tonnes of paper a day so that, along with metal and plastic recycling, the business is able to offer its clients an alternative to landfill that also helps to reduce costs.

After renting the 26,000 sq ft building on Waddon Industrial Estate for four years, the firm wanted to secure a permanent base for the business and approached the owners of the property to make an offer of purchase on the premises.

To fund the investment, the management team combined capital from the business with a £1.2 million loan from its banking partner of 20 years, Lloyds TSB Commercial.

Now, with many companies evaluating overheads and looking to drive cost efficiencies in their commercial property requirements, Diamond Relocations has secured a number of sizeable contracts for 2010 that will boost its turnover by around 40 per cent.

The business will also add to its 24-strong team during the year, with plans to increase the size of its fleet and acquire additional warehouse space elsewhere in the UK over the next five years.

Keith Flippence, director of Diamond Relocations, said: “As a family business it is vital that we ensure the long-term future of the company for future generations. The funding provided by Lloyds TSB Commercial enabled us to make a key investment that means we are now much closer to achieving this goal.

“Having permanent premises has also provided a solid platform from which to grow the business and meet the rising demand for our services.

“Over the next five years we plan to continue investing in the company as it expands so that we have the fleet, the warehouse space and the skilled staff to successfully service increasingly complex and large removals contracts.”

Tristan Renvoize, relationship manager for Lloyds TSB Commercial, said: “Diamond Relocations is a great example of a well-run company that is investing ahead of growth, ensuring it is in a strong position to capitalise on new opportunities created by shifting corporate requirements.

“Purchasing permanent premises also makes good fiscal sense for the business, which had previously been tied to an escalating tenancy agreement, as lower monthly overheads will improve bottom line.

“We worked closely with Keith and his team to devise a funding package that matched the requirements of the business and will enable them to achieve their long-term ambitions.”