South Yorkshire Investment Fund Scores Deals Hat Trick
Published: 3rd October 2002
South Yorkshire Investment Fund has boosted the coffers of three aspiring businesses with loans totalling £105,000.
The latest firms to receive cash include Independent Forgings and Alloys Ltd and Fmats Ltd both based in Sheffield, and IMS Ltd in Doncaster.
Independent Forgings and Alloys of Victoria Forge, Livesey Street in Sheffield, have received an unsecured loan of £50,000. It has been used to develop a new production process on site - installation of a heat treatment facility - that previously had to be sub-contracted out.
The project has led to an additional four members of staff, increasing the work force to 60. Managing Director, Martin Burnham, said: " South Yorkshire Investment Fund were quick to help us and the additional cash was critical to the launch of the project. Our facilities are in demand from both the domestic and international markets with up to 30 per cent of production going to Europe and the USA."
IMS, a field marketing company, based at Balby in Doncaster, has received a £25,000 unsecured loan from the Fund. They work with blue chip companies such as Orange and Sara Lee and employ around 1200 mostly part time staff in the field across the UK and Northern Island.
The loan will be used to fund new IT equipment at the company’s head office. Sales and Marketing Director, Laura Holden, said: "The Fund was extremely helpful and the additional investment will be crucial to the future expansion of the business."
Fmats has been provided with a £30,000 unsecured loan, which helped the firm upgrade its machinery and take on two extra employees.
Dave Batty, General Manager at the plant in Ecclesfield Road, Sheffield,
said: "This additional cash is very welcome indeed and will help us improve our current operations. South Yorkshire Investment Fund gave us sound advice and it was good to work with them."
Formed by a management buyout in October 2000, the company employs 11 people. Much of their work concentrates on the casting industry and it has started working with BNFL and Corus.
Mr Batty said they had a full order book to December and he was confident that the extra funding would help in taking the company forward.
Each of the three companies has appointed a mentor to support the development of the business following the investment by the Fund. The role of the mentor is to provide an objective and critical sounding board for senior management teams to trial ideas and fixes. Mentors are usually drawn from the Fund’s Mentorbank - a 300 strong database of experienced and successful, senior business people representing a wide range of sectors from computer software to civil engineering. In agreeing to use a mentor, clients of the Fund can take advantage of a rebate of interest plus a subsidy towards the cost of the mentor’s fees.
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund, said: "We were delighted to get involved with these forward looking companies. They all have the potential to grow and provide more jobs for the area and are the kind of companies we want to support."
The Fund provides development and risk capital ranging from £15,000 to £500,000 to businesses in, or prepared to relocate to, South Yorkshire.
It offers two key products, one of which is an unsecured loan, ranging from £15k to £50k. There is no need to give a personal guarantee and effective interest rates are from as little as 3%.
The second product is an equity-linked package, ranging from £50k to £500k where South Yorkshire Investment Fund takes a minority stake in the business.
The equity-linked package, with its competitive fees, is designed for new or existing businesses with potential for rapid expansion. Investments can be made as a mix of ordinary and preference shares or subordinated loan stock.
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’s products are designed to support businesses through critical stages of growth. From start through to major expansion, the fund will provide financial support. If a business is looking to start up, invest in new technology or equipment, enter new markets or locate into South Yorkshire it should call South Yorkshire Investment Fund first.
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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).