Director plans to build on firm’s strong foundations

Aug 29 2007 by Tony McDonough, Liverpool Daily Post

A SENIOR director of a Merseyside building services company has raised almost £600,000 to lead a management buy-out of the business.

St Helens-based Paragon Building Services will now aim to accelerate its growth under the control of managing director Paul Barrow.

He secured a £590,000 funding package from Bank of Scotland Corporate for working capital and to fund the MBO.

The deal sees Mr Barrow increase his shareholding from 50% to take full control of the business. The move is part of his ambitious plans to increase the firm's turnover from £5m to £20m within the next five years.

Established more than 25 years ago and now employing 80 staff, Paragon provides construction, mechanical and electrical services, including general maintenance services to the construction and facilities management industry.

A large part of the firm’s business is with the public sector and the firm aims to secure further contracts with local authorities, housing associations and RSLs thanks to its numerous certifications with key trade bodies. Mr Barrow said, “With my hands-on involvement with Paragon I understand the business model and where it has succeeded.

“I also have my own plans for growth and hope that the working capital provided to us will see the organisation continue to grow, expand and secure contracts with the private and public sector.”

Kathryn Cooper, associate director at Bank of Scotland Corporate, added, “Paul demonstrated that he has what it takes as an expert in the construction industry and as an entrepreneur.

“Paragon is a successful business and a large employer, so we’re delighted to be supporting Paul and his management team in their ambitious plans for expansion.

“Ultimately, the success of the company so far is down to the hard-working team at Paragon and the buoyancy of the construction sector in the North West.”

tonymcdonough@dailypost.co.uk