Dundee-based Spar supplier CJ Lang plans to replace and develop its distribution assets over the next two years following an eight-figure refinance transaction with HSBC UK.
The Dundee-based business plans to make its delivery vehicles more efficient and explore alternative fuelling options such as electric or gas power for its trucks.
It will also use the capital refinancing from HSBC UK to invest in its stores’ fixtures and broaden the offerings of its stores, including rolling out more food-to-go services in-store. The upgrades are part of the implementation of CJ Lang’s five-year strategic plan.
The firm is one of Scotland’s largest independent family-owned companies and employs approximately 2,000 people across Scotland, with around 300 staff at its offices and distribution centre in Dundee.
It operates around 100 company-owned stores and supplies to approximately 200 independent retailers.
Craig Tedford, Financial Director, CJ Lang, said: “The support from HSBC UK is allowing us to put our five-year strategy in to practice, with the overall aim of modernising and improving our offer and assets for the benefit of our customers across Scotland.
“We also believe that these improvements will help us develop our customer base and attract new independent retailers to the SPAR business.”
Underlying profits, before exceptional costs, increased by 56% to £764,000.
The firm’s margins rose from 23.9% to 24.3% last year.
Last year sales rose by 2.6% to £187.9 million for the year ending April 30 as the firm entered its 100th year of trading.
The finance was allocated from HSBC UK’s national SME Fund.
The new £14 billion SME Fund has recently been announced by HSBC UK, with £650 million committed to supporting SMEs in Scotland.
jimillar@thecourier.co.uk