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Case Study: Atomising Systems

Published: June 2009

Large Picture

John and Simon Dunkley from Atomising Systems with Andy Chaffer, business director at South Yorkshire Investment Fund

The Company

Sheffield based Atomising Systems, which was established by John Dunkley in 1992, create the technology to convert metal into powder for the automotive industry. 

The company has seen turnover increase from £500,000 five years ago to more than £3million and become the leading supplier of atomising technology and equipment to the global metal powder industry.

Atomising Systems is a family run operation with technical director John working with his son Simon, who is financial director.

The Challenge

Atomising Systems, who are located at Meadowhall, has grown rapidly in recent years and now employ 20 people to support the global development of the business.

The company required financial support to enable them to complete a £1million deal with a client in Germany.

Exporting has been key to the growth of the business, with Atomising Systems developing a client base around the world, including the Far East.   

The Solution

South Yorkshire Investment Fund provided Atomising Systems with a £100,000 loan to support the businesses working capital to finance the contract with the European firm.

Atomising Systems needed to spend money in advance to create the hardware and ship the technology to Germany. Without the finance they would have found it difficult to complete the project.

The money provided by SYIF was their second £100,000 investment in Atomising Systems after initially providing financial backing in 2002.

Martin Weatherall, from Hawsons Sheffield has been a mentor for Atomising Systems, and the company received additional funding from Natwest Sheffield in a deal led by Martin Gorman.

Future Expectations

Atomising Systems have now finished their work with the client and been able to pay the loan back to SYIF within three months.  

The loan highlights how flexible SYIF can be in when South Yorkshire companies quickly need additional working capital to support the growth of the business.

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).