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Penistone company ‘draws' investment

Published: 21st December 2006

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Pictured from the left is Paul Griffiths of HSBC and Karl Hodson of SYIF, who were involved in the Penistone Reinforcements deal.

A Penistone based company has ‘drawn’ significant investment from South Yorkshire Investment Fund (SYIF).

Penistone Reinforcements Ltd, steel wire manufacturers, secured a £100,000 loan from SYIF as part of a £200,000 package in conjunction with HSBC Bank.

The finance deal has enabled Penistone Reinforcements to purchase and install new wire-drawing machines to increase and economise production.

Chris Ward, Director at Penistone Reinforcements, said: "The funding package put together by HSBC and SYIF has enabled us to expand production of drawn wire to meet increasing market demand."

"Penistone Reinforcements has grown considerably over the last few years and our turnover has more than doubled over the 2003 – 2006 period, with further increases predicted for 2007."

Paul Griffiths from HSBC introduced the services of SYIF to Penistone Reinforcements.

Paul said: "We have a good working relationship with SYIF, and it was clear that SYIF may be able to provide finance in respect of the identified funding gap on this project."

"In addition to this, SYIF also provides management support and mentoring facilities to help businesses through transitional periods."

Karl Hodson, Investment Manager at SYIF, said: "Penistone Reinforcements’ strategy for increasing production clearly addressed an abundant demand for their products through new and developing markets."

"South Yorkshire Investment Fund is always on the lookout to help companies like Penistone Reinforcements, which can display the drive and capacity to succeed."

"The Penistone Reinforcements finance package is one of many that we have put together with banks who wish to externally source investment and management expertise for their business users."

Penistone Reinforcements Ltd manufacture mild steel wire and wire products and have been serving their customers for over forty years. The business is family run and places great store in development and expansion to exceed customer expectations.

For more information on how SYIF can help businesses, please go to www.syif.com or call 01709 386 377.

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).