Northern Road motors ahead with HSBC funding

HSBC has provided a comprehensive funding package to facilitate the management buy-in of Northern Road Service & Engineering, a Newark-based specialist engine-repair and motor servicing business.

The business, which is based on the Newark Industrial Centre, has been purchased for an undisclosed amount by Steve Gray, who has taken the role of managing director. Northern Road was formed over 30 years ago and specialises in in-depth engine and gearbox repairs, as well as general motor maintenance. The company currently employs 10 people and generates 60% of its business from other garages utilising its specialist services and 40% from the general public.

The new management team is planning to expand all areas of the business, but particularly the segment which focuses on commercial, fleet and agricultural vehicles, as well as the work it does with vintage cars. The company receives vintage engines from all over the world as it has the capability to manufacture replacement parts which are no longer available.

Steve worked with HSBC's Mid-Lincolnshire and the Fens Commercial team to complete the deal, with Commercial Manager Philip Carr spearheading the relationship on behalf of the bank.

Steve started working in a garage at the age of 11 and has remained in the motor industry of some form for most of his career. He managed a fleet of over 3,000 vehicles nationally in his previous role, but always harboured a dream of operating his own garage business.

Steve Gray said: "Northern Road is a very well known business in the Nottinghamshire and Lincolnshire area and had developed a reputation for its expertise and professionalism. We offer good old fashioned reliable service from a small caring family firm. I want to build on that and expand the business into certain markets where we know there is strong demand. HSBC has been fantastic; Phil has worked with me to understand the business and my intentions and he has been extremely supportive."

Roy Harris, HSBC Midlands Regional Commercial Director, said: "This company is very much a local business but is also known by car enthusiasts throughout the UK for the work it can do with engines. That is testament to the expertise of its staff and it is a business which we think can go from strength-to-strength."

Accountants Duncan & Toplis advised on the deal. Tim Godson, a partner at Duncan & Toplis, commented: "We were delighted to be introduced by HSBC to Northern Road to act as their accountants and business advisers, initially being involved in the preparation of cash-flow forecasts and advising on corporate structure. Subsequently we have helped introduce management information systems vital to ensuring the continued success of the business."