Business Growth Fund backs National Business Entrepreneur of the Year and award winning company with £10 million investment
Better Bathrooms, one of the UK’s leading bathroom retailers, is on track to create 500 new jobs across the UK over the course of the next five years, providing a significant boost for the country’s economy and the retail industry. This announcement comes today as a result of Business Growth Fund (BGF), established to help the UK’s growing businesses, investing £10m of growth capital in Better Bathrooms.
BGF will take a minority stake in the company and will join the board. In addition, BGF has introduced Paul Gilbert, non executive chairman of The Gym Group and former FD of Matalan as a new non-executive chairman of the business.
The investment in Better Bathrooms will help accelerate growth by allowing the company to explore alternative source supplies, expand into adjacent markets and potentially into new global geographies.
Colin Stevens, founder of Better Bathrooms, stated:
“I’m thrilled to have BGF come on board with Better Bathrooms. For me, BGF were the ideal partner as we share the same values, with company growth and the creation of jobs being of paramount importance.
“I believe that with BGF’s investment and expertise, we will be able to take the company to the next level, expanding our factories and product lines, and ultimately hit our future growth target of £200m.
“Of course for our customers this will allow Better Bathrooms to continue with their motto of better prices, better service, better bathrooms.”
In 2007 Better Bathrooms’ annual turnover stood at just over £1m and in the last financial year the turnover was £32m, with a target of reaching £40m within the next 12 months.
According to Mintel, global market researchers, the bathroom fixtures and fittings retail market is currently valued at £1bn annually and is expected to enjoy continued growth.
David Colclough, an investment director who sits within BGF’s Manchester based team, commented:
“Better Bathrooms was the first UK business to carve out a position as a true multi-channel retailer of bathroom products. A leader in its space, it offers one of the largest and best value ranges in the UK.
“The growth that this company has demonstrated over the last twelve years has been outstanding. But Colin, who is an extremely passionate and driven entrepreneur, is keen to do it on a much bigger scale.
“This is where BGF comes in and it is a great example of how growth capital can really help a business with ambitions to expand.
“This investment also shows how we can flexibly structure the financial arrangements such that we best meet the needs of the shareholders.”
This is the sixth business in the North of England to be backed by BGF to date, and brings the total invested in the region to almost £30m. BGF has invested a total of £140m in growing businesses across the UK.