The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in Northumberland, marking a significant milestone for the region since the launch of the £660m fund earlier this year.
LBM Group (NE) Ltd (LBM), a growing electrical contracting firm based in Blyth, has worked with NEL to secure a five-figure loan from NPIF II – NEL Smaller Loans. The funding will enable the firm to expand its team and purchase new assets to support its ongoing growth and meet an increasing demand for sustainable electrical services.
Specialising in solar photovoltaic (PV) technology, battery storage installation and electric vehicle charging point installation, the firm also works across electrical wiring projects including full and partial rewires, door access systems, CCTV and school maintenance.
Group director, Mark Hedley, began as a sole trader in 2011, originally focussing on commercial and domestic electrical work. The business quickly gained traction, leading to the hiring of its first apprentice electrician in 2016. The firm rebranded from LBM in 2022 to mark its expansion and success.
Having recently secured contracts for four new build estates over the next three years, the investment will allow LBM to recruit two additional full-time engineers and implement an admin team. The company will use the investment to provide the engineers with sufficient tools, add a new vehicle to its fleet to support in fulfilling the contracts, as well as provide a new office set up in their new premises located centrally in Blyth Riverside Business Park.
Continuing an upwards growth trajectory, LBM is tendering for more business, including a further housing estate and a public rewiring project. Being one of a small number of local companies which is OZEV-approved and MCS accredited, it is able to meet increasing demand for electric vehicle chargers at commercial and domestic premises and solar PV installations in both existing and new build commercial and domestic buildings.
Mark Hedley, Managing Director at LBM Group (NE) Ltd, said: “Securing this investment from NPIF II has been pivotal for our business. It has provided us with the financial flexibility to expand our team and invest in the tools and vehicles we need to meet the growing demand for our services, particularly in the renewable energy sector.
“This funding has allowed us to not only fulfil existing contracts but also position ourselves for future opportunities. NPIF II’s support has been instrumental in continuing our growth journey, enabling us to scale up faster and continue delivering for our clients.”
Susan Snowdon, Investment Executive at NEL Fund Managers, added: “LBM’s impressive track record and clear plans for the future made a compelling case for investment and they’re now well equipped to start realising more of their growth potential.
“We’ve worked with many innovative North East firms that are focused on low carbon and renewable energy technologies, and are very pleased to be extending our involvement in these sectors through this latest investment.”
Sarah Newbould, Senior Manager at British Business Bank, said: “LBM is an example of the kind of ambitious business that NPIF II was designed to support. It not only contributes to economic growth but also plays a role in advancing sustainability on a broader scale. By installing solar panels and EV chargers, the firm is directly supporting the transition to a more sustainable Britain. We hope it will inspire other local businesses to explore how NPIF II can support their growth and sustainability initiatives.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
