A SPECIALIST power supply firm has secured £4.4m of funding to help grow the business.

Dewsbury-based Progress Group sells, rents and installs generators and emergency power equipment to industrial and commercial clients worldwide.

The business, founded in 1956, has grown into the UK’s leading dealer of FG Wilson diesel generating sets.

Now it is looking to further expand its fleet of hire equipment that is proving popular with customers who want to reduce capital spending.

Andrew Walls, of Ethos Corporate Finance, led the deal that involves a total of £4.4m of lending provided by HSBC Bank and HSBC Invoice Finance.

The money will be used to replace existing facilities and provide the required cash reserves needed to expand the business.

Progress Group managing director Adrian Kemp led a management buy-out of the business in 2007, which bought the company from the founder’s family.

The firm’s turnover has proved resilient, despite the downturn – but a lack of funding was hindering expansion.

Said Mr Kemp: “Some of our customers were severely impacted by the recession, but we’ve still been able to outperform the market and we have been creative about developing the hire fleet proposition.

“We are now positioned to expand and take the business forward both with more efficient newer hire generators, but also into more overseas markets with a great deal of potential.”

Mr Walls said: “Progress needed more liquidity to invest in the newest generator technology available to take advantage of the opportunities in the hire market and move forward after the recession.

“Increasingly, the right lenders for businesses depend on their sector, markets and trading situation.

“This deal shows that solid businesses can still attract crucial funding, but you can’t just rely on your existing bank and you have to be willing to work hard to structure the package and work with new providers,” he added.

The funding package comprises a term loan of £900,000, a £1.5m asset finance facility and an international trade facility of £500,000 all provided by HSBC Bank.

A working capital facility of £1.5m was also provided by HSBC Invoice Finance.

Jonathan Simms, of Clarion, provided legal advice to Progress Group.

Keith Low, of HSBC Bank, said: “We are delighted to support the growth of Progress.

“The structured nature of the funding on the right terms provides Progress with the facilities they need to allow them to expand, aided with our international expertise and global network.

“We look forward to working with Adrian and his fellow directors on a partnering basis for many years to come.”

Progress Group employs 45 staff at its 40,000sq ft workshop, head office, showroom and depot in Dewsbury.

It also has 65 people across three sites in Glasgow, Cleveland and London.

Recent contracts have included ones to supply equipment to data centres, colleges, hospitals and the National Grid as well as a museum in Abu Dhabi.