A FAMILY-RUN North Yorkshire property company is starting a new era after a major restructuring deal to create a new owner.
David Harrison Group, managing director, Sean Harrison, plans to expand the Malton-based business after completing a shares transaction to buy out his parents, David and Marion, in the deal led and funded by Yorkshire Bank's York Financial Solutions Centre (FSC).
The group, which was founded by David Harrison as a sole trader in 1980 incorporated when his wife joined in 1998 and now comprises David Harrison Building Contractors and David Harrison Developments with a joint £4.5m turnover and 40 staff.
The share deal enables Sean Harrison, 37, who joined the company, which carries out commercial and residential developments within a 60-mile radius of Malton, in 1986, to acquire the remaining two-thirds of the business to allow his father to retire as a director.
Sean Harrison, who became managing director in 1998, says: "My parents have worked hard to build up a successful business. My father would now like more free time while my mother will remain in our administration team as a valued member of staff.
"The last five years has seen significant growth, from building about six homes a year to more than 50, and developing about five industrial units, many speculatively, each year.
"We have good relationships with financially-strong joint venture partners, a healthy land bank and I am confident we can continue to grow the business with residential development concentrating on starter and high-value homes and omitting the over-crowded middle market and a possible slight reduction in contracting work.
"Yorkshire Bank has previously funded several developments with us and has given us great support with this re-structuring. The York FSC certainly lives up to its name and looks for solutions rather than problems."
The business has just completed £1.3m industrial premises in Malton, divided into eight industrial units and another £750,000 warehouse premises in the town.
David Harrison says "Sean has been around the business since its inception. He has shown great acumen since becoming managing director and we have no doubt that he will continue to grow the business successfully."
Yorkshire Bank York FSC business partner, Brian De Vere, says: "The David Harrison Group is a significant local employer with a strong reputation and it is rewarding to be involved in a deal which secures its future within the founding family."
York lawyers, Crombie Wilkinson acted for Sean Harrison and Harrowells for Yorkshire Bank. Accountants, Garbutt & Elliott, York, acted for the family and the York office of Savills were valuers.
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NOTES TO EDITORS
Yorkshire and Clydesdale Banks are both part of the National Australia Group.
Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire. Today, the Bank has more than 190 Yorkshire Bank branches, a strong personal customer base and a growing business capability in the North of England and the Midlands.
Yorkshire Bank is a trading name of Clydesdale Bank plc, which is a subsidiary of the National Australia Bank Group of companies. Yorkshire Bank joined the Group in 1990.
Financial Solutions Centres
Yorkshire Bank Financial Solutions Centres (FSC) offer Members a tailored range of business and private banking services under one roof. A team of specialist partners, each with considerable local experience, work together to provide Members with end to end solutions for their business and private banking needs. In addition to banking services, the FSCs also operate as a hub for local business, with a range of networking opportunities and meeting facilities available as a benefit of membership.