A management buyout (MBO) has been completed at Morley based Elm Building Services supported by £1m investment from Finance Yorkshire.
Elm is an established provider of mechanical and electrical services to the industrial, commercial, retail and leisure industries. Key clients include David Lloyd Clubs and Whitbread, owner of Premier Inns.
The company was founded by electrical engineer Neil Munday in 2002 who has grown the business year on year with turnover this year expected to exceed £8-10 million.
Elm employs 23 staff members and is projecting turnover of £15-17m over the next three to five years. It undertakes large scale mechanical and electrical projects across the UK and Europe.
The MBO will see Neil’s senior colleagues John Newton and Ian Walker take on the business with a view to growing the company particularly in the fields of solar power and low carbon solutions. Neil will stay in the business to provide support to John and Ian and further enhance their current client base.
Finance Yorkshire’s £1m investment from its Growth Fund is supporting the MBO. Neil said: “We have grown a successful business which is in good hands with John and Ian at the helm with my ongoing support. Finance Yorkshire can see we are moving the business into a new chapter with the opportunity to become a £15m to £17m business over the next three to five years. Its investment will support us to bring in new customers and grow further.”
Finance Yorkshire chief executive Alex McWhirter said: “Neil and his team have established Elm Building Services as a highly reputable provider of mechanical and electrical services. Our investment supports the opportunity to further grow the business as demand increases for the installation of green and sustainable energy technologies.
“The MBO at Elm is the type of investment Finance Yorkshire is keen to support to ensure the retention of companies and jobs in the Yorkshire and Humber region.”
Finance Yorkshire’s Growth Fund is part of a wider regional business fund which is expected to provide more than £50m to SMEs over five years. Investment is also available from its Business Loans and Seedcorn Funds.