A landmark court ruling is helping to spell further expansion for a finance company which has turned its back on Leeds to stay in the Bradford district.

Cattles Invoice Finance, part of the huge Birstall-based Cattles Plc, will officially open its new 5,400 sq ft headquarters at the Access 26 Retail Park on the junction of the M606 and M62 near Cleckheaton next month.

And the firm, which provides finance to businesses, is hoping a landmark legal ruling which could prevent banks from using an overdraft facility on loans will spell a big increase in business.

Managing director David Jones said he felt the Spectrum judgement, which dramatically reduced the valuation a bank could apply to its security, could bring a major benefit to invoice discounting firms such as Cattles.

It provides substantial loans to fund expansion plans and help cash flow to firms which turn over anything from £200,000 to several million per year.

And the company is banking on maintaining its record of growth after seeing turnover treble to more than £100 million in the last 12 months. Its new offices have been built to accommodate a significant growth in the 21-strong workforce, which has grown from just eight in the last year.

Mr Jones, who joined the firm in November 2002, said the business was confident its expansion would continue.

And he said the company was proud to have shown its commitment to the Bradford district by keeping its headquarters near its original home in Cleckheaton.

Mr Jones said the business relied on a strong local network of professional firms, which still existed in the Bradford area.

"In the middle part of last year it was up to us where we wanted to locate the office," he said. "We could easily have gone to Leeds but decided that we would be better served by staying here.

"A lot of the big firms have moved to Leeds for cost-cutting reasons. But we actively resisted the move when we had the opportunity."

The workforce is expected to grow to more than 30 in the next 12 months on the back of new business wins.

Mr Jones said the company was formed in 2001 after two firms were bought out by Cattles Plc and merged.

"The performance of the company since we branded under the Cattles name has been quite exceptional," he said. "In this industry, people want to know that you have got financial strength behind you, and we have a FTSE 120 company."

He added that the significance of the Spectrum ruling, which reaffirmed a decision lodged in a New Zealand case, would have a big impact on banks.

"In my opinion, the Spectrum judgement has signed the death warrant on the traditional overdraft and will see the banks pushing their clients even harder down the factoring or invoice discounting route," he said.