Loan assists in management buyout for Sheffield company
Published: 29th August 2006
Jane Siddle; SYIF Investment Manager; Andy Cribb, of Smith Craven, and Craig Hughes, Bramley Electrical’s Managing Director.
A specialist Sheffield business is set to go from strength to strength courtesy of a ‘management buyout’ loan from South Yorkshire Investment Fund.
Bramley Electrical & Mechanical Ltd, specialises in heating, plumbing, electrical and air conditioning, and is now under the sole ownership of Managing Director Craig Hughes after the £50,000 SYIF loan assisted in a partnership buyout.
Craig anticipates that the company will now secure a wider blue-chip client base and intends to focus on greater business expansion and diversification goals for the immediate future.
Bramley Electrical and Mechanical offers a one-stop-shop service for clients in industrial, commercial and residential sectors, providing electrical, heating, plumbing and air conditioning services from conceptual design, through to project management and practical completion.
The business was founded by Craig in 2001, and in 2003, he introduced a business partner into the company to assist with financial growth.
Craig was introduced to SYIF by Andrew Cribb of Smith Craven, who also took a pro-active role in the arrangement of the loan, and the subsequent funding enabled Craig to establish a new direction for the company.
Craig said: "The SYIF loan helped with the management buyout, which was a critical move for the future direction of the company. The strategy from here is to secure a greater share of service provision to the public sector."
"We have enjoyed phenomenal growth since the company started trading with just one engineer and myself back in 2002. That year, we achieved a turnover of £49,000 and in 2005 that figure reached £2.2 million."
Bramley Electrical & Mechanical’s expansion since its formation has met an increasing industry demand for service providers who can offer a complete package from conception to installation.
Craig said: "We perform every part of the process for our clients, so there is no sub-contracting and the customer only has one port of call. Customer service is paramount to us and we are currently applying for ISO standard status - essential to guarantee the levels of customer service that modern industry demands."
With the company’s future direction planned out, Craig hopes to sustain the increasing turnover and to enable continued growth.
Jane Siddle, Investment Manager at SYIF said: "Craig had a clearly defined direction for Bramley Electrical & Mechanical Ltd. which offered exactly the kind of proposal that we would be willing to invest in. The company has shown massive potential and we look forward to working with Craig to ensure continued growth."
SYIF provide loans and equity linked investments ranging from £15k to £2.5m to businesses already in, or prepared to relocate to, South Yorkshire. The Fund has already invested £24 million in 184 businesses – and now many are returning for more funding to develop further stages of their company’s growth.
For more information on how SYIF can help you, please go to www.syif.com or call 01709 386 377
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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).