According to managing director Dave Broadway, the business has "built up a cash pile" and is looking at a range of businesses.

He said: "We can spend the cash on one thing or another, but the biggest benefit would be an acquisition - it will aid faster growth.

"We are talking to three companies at the moment. It is relatively early but these things can escalate quickly. I would expect to have something completed before Christmas."

Broadway added that the company planned to "refresh" its equipment in the next 12-18 months.

CFH moved its finance to Clydesdale Bank at the beginning of July after 38 years with RBS, which it had been with since its inception.

Broadway said that it did not like the direction in which the bank had been going since its 2008 crisis.

He said: "Once RBS became owned by the British public its interest in growing businesses lessened. It was clear they were not interested in lending money and that is not ideal for a business with serious future growth plans."

CFH already had a relationship with Clydesdale prior to the agreement. It supplies print and mailing services to the bank, while Clydesdale also handled asset finance for CFH.