A NORTH-EAST construction company is set to build on the success of a new division it launched just a few months ago by investing heavily in its development.
Koru Property Services launched a new minor works service in May last year to capitalise on the increasing numbers of public sector institutions such as schools that now manage their own budgets for everyday repairs and maintenance requirements.
Having secured contracts worth over £220,000 in its first four months, predominantly through word of mouth, Koru are now set to put additional resources into the division.
It runs alongside the company’s larger design and construction operations, and aims to turn over £1m in 2012.
The firm is also focussing on offering its full range of services through its new Teesside office, which is planned for early 2012, especially within the petrochemical and pharmaceutical markets, and has also invested in its IT infrastructure.
To help fund these developments, Koru has renewed its relationship with regional fund management firm NEL Fund Managers and secured a new £400,000 investment from the Finance For Business North East Growth Fund that NEL administers.
Koru has previously received two investments totalling £350,000 from NEL Fund Managers in early 2005 and late 2006, to provide the working capital required to fund their initial expansion plans and to enable them to tender for contracts against larger competitors.
The business was set up in 2002 by directors Tony Henderson and Mark Taylor, and provides a fully-integrated service, with directly employed in-house teams managing all aspects of design and construction.
Director Tony Henderson said: “Many of the Koru team live in the Teesside area and know the local market extremely well, so increasing the volume and range of work that we do through our new office there is a natural progression for us.”
David Thomas, investment executive at NEL Fund Managers, adds: “Despite the toughest construction industry climate in decades, the Koru management team has developed a robust business.”