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Pure Staff secures 7 figure HSBC funding package

Pure Staff, which specialises in recruiting  for the industrial and haulage sectors, has recently opened the doors  of  its  third branch, which forms part of its strategy to develop a network of 25 branches across the Midlands.

The  company  was  founded in 2009 by young entrepreneurs David Whitehouse, aged  29, and John Sutton, 32, in the spare room of John’s Bromsgrove home. Last  year, it generated a turnover of &pound8 million but is confident that its new branch in Worcester, which complements its existing branches in central Birmingham  and  Bilston, will help propel its turnover to over &pound11 million in 2014.

To  support  its  growth,  the  business has secured a &pound1.1 million invoice finance  facility  from  HSBC’s  Black  Country  and  Shropshire Commercial Centre, in a deal led by Commercial Manager Marc O’Connell and supported by Invoice  Finance  Sales Manager Lee Terry. Invoice finance is commonly used in  the  recruitment  industry  and  provides  a flexible source of working capital,  allowing the business to release the value of its sales ledger to accelerate expansion.

Pure  Staff  was  founded after joint Managing Directors David and John met whilst working for the same recruitment agency in the mid-2000s. Pure Staff now employs 26 people, which will rise to 34 by the end of the year, and is targeting two new branch openings a year.

The  new  Worcester  branch, based at Lowesmoor Wharf, opened on February 3 and  will  initially  employ  five members of staff. The branch, which will host  an  open  day  on  March  15,  will service clients across Worcester, Hereford, Redditch, Bromsgrove, Droitwich Spa, Kidderminster and Evesham.

Joint Managing Director David Whitehouse said: “We launched in possibly the worst  economic conditions the UK has experienced but we have grown because our  clients  and contractors appreciate the service we offer. We make sure we offer a personal service and we don’t over promise and under deliver.

“We  see strong opportunities for the business and are planning to open our fourth  branch in the latter half of the year. Going forward, we would like to  open two new branches a year and have spent a large part of 2013 making sure  the  business  foundations  are  right  to  enable  us  to do that. A significant  component  of this was the funding of the business and that is why  we  are  pleased  to  have  switched  our banking to HSBC. The invoice finance  facility  Marc has put in place not only cuts our cost of funding, it  provides  us  with the flexibility and capacity required to support the growth of the business.”

Kevin  Skym,  HSBC  Area  Commercial  Director  for  the  Black Country and Shropshire,  added: “This business has achieved phenomenal growth, which is testament  to the drive, ambition and management of its founders. David and John  spotted  an opportunity to offer something new to the market and have installed a strong customer service ethos throughout the business. I’d like to  welcome  them  to  HSBC  and look forward to working with them as their business develops.”


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