A fast-growing manufacturer of luxury holiday lodges has joined forces with a neighbouring council to invest £1.1m in a factory extension and create 80 jobs.

Brandon-based Omar Group, which builds park homes and lodges for holiday destinations across the UK, is building the extension at its London Road site.

Forest Heath District Council, which is contributing £537,500 towards the expansion, will continue to own the site, and lease it to Omar Group for £250,000 a year.

Omar Group chief executive Dean Westmoreland said the extra space would allow the firm – which is on track to grow 31pc this year – to continue its rocketing trajectory.

Mr Westmoreland said: 'We delivered 49pc top-line growth last year which is nothing short of outstanding.

'With capacity constraints there was a need for an extension.'

This year Omar Group was featured in the London Stock Exchange Group's 1,000 companies to Inspire Britain, 2016 report.

Company turnover reached £23.8m for the 12 months to the end of April last year, and Mr Westmoreland said it was on track to reach £31.5m this year. Pre-tax profits reached £2.4m for the same period, up from £1m the year before.

He added the business was the largest single employer in Brandon, and said all staff were paid a living wage of at least £7.85 per hour.

Forest Heath District Council cabinet member for resources and performance, Stephen Edwards, said the deal made 'perfect business sense' on behalf of taxpayers.

'We are aiding economic growth, ensuring that a successful local company is able to commit its future to Brandon and securing and creating further employment,' he said.

'We are also gaining an increased level of income which we will use to help support the future costs of services to our local communities. Everyone wins.'

Forest Heath bought Omar's London Road headquarters four years ago, helping protect about 130 jobs, and leasing it back to the company on a 10-year lease for £200,000 a year.

The rent will increase when the company expands which the council said would cover a return on its investment.

The deal has now been signed and will see Omar extend its lease with the council for a further 15 years, and move into the new extension in mid July.

Is your company planning an expansion? Call Sabah Meddings on 01603 772879 or email sabah.meddings@archant.co.uk