Fund Helps Company Develop International Markets
Published: 3rd September 2002
South Yorkshire Investment Fund has helped Industrial Carbides Ltd improve and consolidate their business, in a deal worth £175,000.
The Fund provided the company with an unsecured loan of £50,000 and helped in negotiations with NatWest Bank to secure additional funding of £125,000, in the form of a small firms loan guarantee.
Industrial Carbides Ltd, of Bromsgrove in the Midlands, bought Sheffield company Neepsend Industrial Carbides Ltd, after it went into receivership in June 2001. The company is now planning to close its plant at Bromsgrove and concentrate both businesses at the new site at Parkway Industrial Estate, Nunnery Drive, Sheffield.
Managing director, Ian Brookes, said: "We are very pleased with this additional funding. It has helped us consolidate our move and will enable us to reach out to much larger international markets.
"It will also mean we will be involved in more manufacturing in the UK and will help us put in place a marketing strategy to secure contracts in Scandinavia and New Zealand to name but two."
He added: "In addition to the assistance from the Fund, we have been helped by our business mentor Dr David Clayton, who provided us with a corporate dimension."
Neepsend transferred from its Grange Lane site, Sheffield, in October 2001, to Nunnery Drive, a process that involved the moving of around 120 machines. The move from Bromsgrove will involve the relocation of three staff and 14 machines.
The company, which makes tungston carbide tools, has also taken on five extra employees, boosting numbers to 20. Industrial Carbide was formed in 1990, while Neepsend had been in Sheffield since the 1940s.
Tony Goulbourn, Chief executive of South Yorkshire Investment Fund Ltd, said: "Helping these two companies come together in South Yorkshire is just one of the deals we are looking to secure for the region. The extra funding has helped put the new company on a firm footing, provided additional employment with the potential for further growth in the near future."
The Fund provides development and risk capital ranging from £15,000 to £500,000 to businesses in, or prepared to relocate to, South Yorkshire. A unique feature of the Fund is its Mentorbank project, which provides subsidised mentoring support to help management teams grow the business more profitable.
The Fund offers a series of loan and equity packages structured to back businesses through critical stages of growth. From start-up through to major expansion, The Fund will consider providing financial backing. If a business is looking to grow by investing in new technology or equipment, entering new markets or relocating into South Yorkshire it should call South Yorkshire Investment Fund first.
- Invitation to Tender for Fund Management Contracts
- Move to Barnsley
- Jobs boost from investment fund
- Finance Yorkshire looks to a future of investment
- New finance venture to boost businesses
- Screenprint displays the signs of success
- Doncaster hospitality company looks to the future
- Printing company gets it Wright with SYIF
- More Business & Investment News...
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).