Building on success with larger premises

BUILDING society Nationwide saw profits tumble in the first quarter following a retreat from the buy-to-let market and concerns about a “prolonged economic uncertainty”.

The mutual said underlying pre-tax profits fell by 18% to £301m in the three months to June 30. Statutory pre-tax profits fell from £401m to £322m in the period.

However, chief executive Joe Garner said profit remained in its “target range”.

The figures also show that gross mortgage lending fell from £8.6bn to £8.1bn in the period, while net mortgage lending decreased to £2.4bn from £3.5bn.

Nationwide put this down to a “reduction in buy-to-let advances” as a result of the increase in stamp duty for such properties that came in last year, and changes to its lending criteria. by a £765,000 finance package from Lloyds Bank Commercial Banking.

JTD Building Supplies, which has been trading for six years, expects to increase annual revenue from £2.75m to more than £3m by the end of the year.

Managing director Tony Sharkey said: “Our site at Meltham Mills has served us well since we formed in 2011, but we’ve outgrown the unit and require an outside yard, which the new site will accommodate.

“We’re building a new store to our exact specifications. The new site is located on a main road, which is a more prominent location for us. We expect this to help grow our business further.”

He said: “Building a new premises can be a complex process, but the team at Lloyds Bank has always been on hand to provide guidance on how we can manage our cashflow while investing in growth.”

Ben Cutts, relationship director at Lloyds Bank, said: “Yorkshire’s regional PMI index is showing some of the quickest rises in job creation seen over the last two years. This is partly down to ambitious firms like JTD, who are being proactive in finding ways to expand and grow their businesses.

“Lloyds Bank is committed to helping companies like JTD, which is why we’ve increased our net lending to SMEs by 31% since 2011 – a key element of Lloyds Banking Group’s commitment to helping Britain prosper.”