Chepstow-based used telecoms supplier TXO Systems is targeting significant expansion after securing a multi-million pound finance facility with HSBC that will enable it to increase its stock capacity and grow staff numbers by a third.

The business, which is based at Severn Cross Distribution Park, at Newhouse, specialises in trading second-hand telecoms infrastructure equipment globally, as well as recovering and recycling legacy network equipment deemed obsolete. Customers of TXO Systems include major telecoms operators and original equipment manufacturers worldwide.

The company generates sales of approximately £20m a year but expects the £4m Revolving Credit Facility from HSBC to accelerate turnover growth over the next three years by enabling it to bid for telecoms stock in greater volume, and of higher value, than previously.

The business is planning to increase staff numbers by one third on the back of its expansion plans, taking total employees from 90 to 120 by 2017.

TXO Systems is a long-standing customer of HSBC and the new facility was arranged by HSBC’s Cardiff and South East Wales Commercial centre in a deal led by senior commercial manager Rob Owen.

TXO Systems finance director Calvin Coakley said: “We have previously purchased stock from cash generated by the business but this has constrained our ability to compete in the larger stock sales. This new facility from HSBC gives us the financial capability and flexibility to bid for those larger stock sales, which makes us more attractive to our customer base.”

TXO Systems was founded in 2005 and operates from an 115,000 sq ft facility in Chepstow, as well as from offices in Italy, Sweden, the US, Brazil and Australia, markets in which it both buys and sells equipment.

Calvin Coakley said: “The new finance facility will enable us to take the business to the next stage and we are targeting significant turnover growth over the next three years. Alongside this growth we will require more people to source and sell stock, as well as staff to process and prepare stock that comes into Chepstow for sale. This is an exciting stage in the company’s development.”

Roger Pratt, HSBC area commercial director for Cardiff and south east Wales, said: “The Revolving Credit Facility for stock purchases is a flexible form of funding and the company can pay down the facility several times, meaning TXO can offer its clients a broader range of products and in greater scale. This is a great example of a Welsh company fully integrated with the global economy.”