Fife builder Campion Homes has received a multi-million pound investment from the Business Growth Fund (BGF) to accelerate its building programme in private residential and affordable homes.
The Dunfermline-based business would not disclose the amount invested by BGF but said it would help with plans to plans to build 700 new homes over five years.
Campion has weathered fluctuations in the housing market during the past decade, maintaining profitability and building a strong pipeline of land for development.
In the year to June 2015 it reported a pre-tax profit up 60% at £685,750 from a turnover up 13% at £15.8 million.
Founded by Pete Bell , the company has built more than 1,500 homes across Fife, the Lothians, Clackmannanshire and,Perth & Kinross since 1989.
It is currently selling at three private developments in Fife: Laurel Bank in Springfield, Rosemount in Leven and Hawthorn Bank in Dunfermline.
Future developments in the pipeline are at Law View Leven, Cuparmuir and Dairsie.
To support the growth in private residential development, Mike Stansfield, former chief executive of national builder David Wilson Homes, has been appointed as a non-executive director of Campion following an introduction by BGF.
Campion has worked with public housing authorities in east central Scotland for more than 26 years, and the affordable homes segment remains a significant area of focus.
An increase in activity is expected following an announcement by the Scottish Government, of plans to build 50,000 new affordable homes over the course of the next parliament.
Chairman Pete Bell said: “This is an exciting time for our business. There has been significant demand for our recent developments and our pipeline is strong.
“We have chosen to take on a funding partner in order to accelerate our growth opportunities. This investment will allow us to meet the increasing demand quickly without compromising our quality and delivery.
“We explored other funding options but BGF is considered by us to be the right fit for our business. BGF is a flexible, long-term and non-controlling funding partner.”
BGF’s Patrick Graham, who joins the board as a non-executive director, said: “The team at Campion Homes has built a fantastic business, one that is ambitious and has solid foundations.
“Our funding is unlocking a clear growth opportunity, underpinned by a quality land bank in a strong market and a management team that has significant experience in housing development.”
BGF provides growth capital to small and mid-sized businesses which are privately-owned or listed on AIM, and typically have revenues of between £5m and £100m.
It makes initial investments of £2m to £10m and can provide additional funding to support further growth. The investment is typically in the form of equity in return for a minority equity stake.
BGF has capital of up to £2.5 billion and is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered.