West Yorks haulage business on road to further growth

27th September 2012

A fast-growing haulage and distribution business has created 17 new jobs having acquired a new warehouse and launched new services, thanks to backing from Yorkshire Bank.

R M McDowell Haulage and Distribution Ltd has acquired a new £750,000 warehouse at Aireside Business Park, Keighley, after gaining support from Yorkshire Bank’s West Yorkshire Business Banking Centre through its Investing for Growth initiative.

The company, which has increased turnover by £3m to £12.5m in the last 12 months, has started a five-year rolling contract to provide its new ‘pick-and-pack’ service to Swiss hair and beauty products manufacturer, Mibelle Ltd, which has its UK base in Bradford.

McDowells new ‘pick-and-pack’ operation collects, sorts and selects products from manufacturers’ before repackaging and delivering to individual customers.

The ability to provide a reliable ‘pick-and-pack’ service has enabled McDowell’s to win a further long-term contract for hair care company, premium brand, Lee Stafford, which has a globally-recognised product range exported to more than 30 countries.

The company is also launching a home delivery service which will see it make collections and deliveries anywhere in the UK for on-line retailers. The service will use McDowell’s developing national depot network. The Company opened a depot in Bellshill, Glasgow, in 2011 and it’s Bristol facility was opened earlier this year, creating seven jobs. A further depot in Bedford, which will led to a further seven appointments, is due to open before the year end.

Managing director, Roger McDowell, who founded the business with a single vehicle in 1976, said:

“Until our new warehouse, which previously belonged to Ponden Mill, became available, we intended to build a warehouse on our site following planning permission being granted by Bradford Council.

“However, Yorkshire Bank has once again demonstrated its faith in us, in spite of the tough economic outlook. Acquiring this warehouse means we can hold a further 4,000 pallets, it has helped us to launch the ‘pick-and-pack’ service, and has created new jobs and get up to speed quickly for Mibelle – with whom we are currently exploring international service options.

“We still plan to develop our site with a 20,000 sq. ft, 4,000-pallet warehouse in due course, as continuing investment in new facilities allows us to provide our customers with the added value services they require. This, coupled with our total commitment to meeting customers’ needs, is the key to our current growth. We’re pleased to be expanding and creating jobs at this difficult time. Yorkshire Bank is a long-term partner of our business and has always been supportive of our development plans.”

Jason Middleton, business partner at Yorkshire Bank’s West Yorkshire Business Banking Centre said:

“Increases in oil prices during the last few years have not made life easy for haulage and distribution businesses. However, McDowells is an experienced and creative company which has continuously invested and developed its services and Yorkshire Bank is pleased to be supporting its further expansion.”

Yorkshire Bank’s Investing for Growth initiative enables businesses to take advantage of loan repayment holidays, interest-only repayments and extended loan and credit terms designed to take advantage of quality growth opportunities. Businesses signing up to the package can re-invest the cash into their operation for expansion, new staff, equipment, machinery and commercial development.