Sigma 3; a family business investing in the future

Sigma 3 has been crafting quality kitchens in South Wales for half a century. Now the family-run manufacturer is scaling up with a major investment in automation, backed by Lloyds.

Read time: 4 mins  Added: 17/04/26

" "

Built on five decades of expertise

When Brian Lakin founded Sigma 3 in 1975, he set out to create kitchens that would stand the test of time. Fifty years later, the business he built remains in family hands, with Brian still working as executive chairman and his son Richard now leading as CEO.

From its base in Llantrisant, South Wales, Sigma 3 has grown into a nationally recognised manufacturer, supplying independent kitchen specialists and boutique house builders across the UK. The company operates six retail showrooms under the Sigma 3 banner, while its premium Masterclass brand is sold through a network of around 150 retailers nationwide.

Group Finance Director Paul Groves said: "We're operating in the mid to upper market, manufacturing kitchen furniture, as well as home office and bedroom products. We've got four main sales channels: our own retail showrooms, independent retailers selling our Masterclass brand, house builders and developers, and our trade arm serving smaller builders. It's a family business with strong values, and that runs through everything we do."

Today, Sigma 3 employs 230 people and has grown turnover to around £35 million. But the business had been facing a capacity bottleneck, with capacity at its Llantrisant factory limited to support revenues of £28-30 million at most.

We were constrained by our capacity here at Llantrisant, which was only enough to support revenues of £28-30 million at most. We knew that, if we wanted to keep growing, we needed to invest in a new site and new machinery. Now we've got that capacity, we can treble our output.

Paul Groves Group Finance Director, Sigma 3

A transformational investment

The solution came in the form of a new manufacturing facility in nearby Bridgend, which was initially acquired in 2021. But this was more than a simple property purchase. The building required substantial work to prepare it for state-of-the-art production equipment, with Sigma 3 investing £2.5 million of its own cash to get the site ready.

Lloyds provided a comprehensive funding package to support the expansion, including a £7.9 million property loan covering both the Bridgend acquisition and an extension to the Llantrisant facility. A Capital Import Finance facility enabled Sigma 3 to pay overseas suppliers while machinery was in transit, before a £4 million Asset Finance facility kicked in once the equipment was installed and commissioned. This included £1.3 million of Green Asset Finance - discounted lending to support sustainability - which reflected the efficiency gains and lower emissions that the modernisation made possible.

The new equipment began arriving during 2024, with the Bridgend site becoming fully operational in January 2025. The investment includes cutting-edge automation from leading European manufacturers: saws, stores and edge-banding equipment plus drilling and assembly machinery from top quality manufacturers in Germany and Italy. A comprehensive dust extraction system and conveying equipment complete the setup.

Paul said: "Previously, boards were manually handled around the factory. Now automation takes over. It picks and places, it knows exactly how many panels it's going to make, what shape, size and length. The quality of the cutting, edging and drilling is industry leading."

Asset Finance was very convenient for us. It provided 80% of the financing, secured on the value of the machinery, and at an extremely good interest rate that was negotiated back in 2021. It meant we weren't pulling on our working capital during a period when we were also investing heavily in getting the building ready.

Paul Groves Group Finance Director, Sigma 3

Efficiency, sustainability and growth

 
" "

The new equipment has not only trebled Sigma 3's production capacity but also delivered significant sustainability benefits. The modern machinery consumes around half to a third of the electricity of the older equipment it replaces, while improved efficiency also means fewer delivery journeys to customers.

Paul said: "Before, we might be making two or three journeys to a customer with different parts. Now we're making everything together and the kitchen ships as one. The carbon footprint has been reduced as these new machines are so much more energy efficient than our old kit, which was 10, 15, even 20 years old."

With the Bridgend facility now operational, Sigma 3 has ambitious plans for the years ahead. The company is targeting growth from its current £35 million turnover to potentially double within five years, driven by expansion across its existing sales channels and the development of new routes to market.

Paul added: "We're looking to expand our network of independent retailers to over 200. We're also developing new sales channels that will add significant revenue on top of organic growth from our existing business. We've got a huge market within the UK to go at, and now we have the capacity to do it."

The new equipment has not only trebled Sigma 3's production capacity but also delivered significant sustainability benefits. The modern machinery consumes around half to a third of the electricity of the older equipment it replaces, while improved efficiency also means fewer delivery journeys to customers.

Paul said: "Before, we might be making two or three journeys to a customer with different parts. Now we're making everything together and the kitchen ships as one. The carbon footprint has been reduced as these new machines are so much more energy efficient than our old kit, which was 10, 15, even 20 years old."

With the Bridgend facility now operational, Sigma 3 has ambitious plans for the years ahead. The company is targeting growth from its current £35 million turnover to potentially double within five years, driven by expansion across its existing sales channels and the development of new routes to market.

Paul added: "We're looking to expand our network of independent retailers to over 200. We're also developing new sales channels that will add significant revenue on top of organic growth from our existing business. We've got a huge market within the UK to go at, and now we have the capacity to do it."

Sigma 3 is a business with real heritage and ambition. The investment in the Bridgend facility and advanced manufacturing equipment has transformed their capability, positioning them for substantial growth while also improving efficiency and sustainability. The Capital Import Finance and Asset Finance facilities we were able to provide have meant Sigma 3 could fund their CapEx while also managing their cash flow with monthly payments. We’re excited to see what this new chapter holds for the business.

Paul Williams Relationship Director, Lloyds

You may also be interested in

Green Asset Finance

Support your business's sustainability goals with discounted Asset Finance for electric vehicles, energy-efficient equipment, renewables and more.

Enquire or apply

More about Green Asset Finance

Manufacturing hub

For more tailored guidance for the manufacturing sector visit our specialist support hub.

Visit the Manufacturing hub

All lending is subject to status. Eligibility Criteria Apply.