Getting ‘redi’ for even further growth!
Published: 9th January 2007
Phil Culling Managing Director of Redirack, SYIF Investment Manager Jane Siddle, Jack Holden Redirack’s Operations Director and Yorkshire Bank’s David Towers
A Rotherham company was ‘mentor-be’ successful, after receiving a helping hand from South Yorkshire Investment Fund (SYIF).
Kilnhurst-based Redirack has benefited from two loans from Rotherham-based SYIF and has utilised the organisation’s Mentorbank facility.
Redirack, a storage solutions provider who specialises in pallet racking and mezzanine floors, has recently received a second loan from SYIF for £75,000 - money which will be used as working capital.
Redirack, on Wharf Road, used its first loan from SYIF for £100,000, together with funding from UK Steel Enterprise and Yorkshire Forward, to carry out a Management Buy Out (MBO) from its former Norwegian owners, AKER, in 2004. Managing Director Phil Culling, together with Operations Director Jack Holden, and the former Financial Director John Watts, took the step of buying the company – safeguarding the jobs of around 100 employees.
Redirack, who had a turnover in 2005 of £13.8 million, has also received advice and guidance under SYIF’s mentorbank scheme – where the company has benefited from the expert advice of IT mentor, Bill Tyson, and financial mentor, Chris Heaton.
Redirack can provide storage products for the largest high bay warehouse to the smallest single run store. Its racking’s unique design means less on-site assembly time for its clients, reduced maintenance and increased reliability when compared with pallet racking having a bolted construction.
Now the company, which has seen the mezzanine floors section of the business increase annual turnover to £2 million in just three years, is looking to the future and planning to introduce new products and to expand into the export market.
Phil Culling, Managing Director, said: "Initially SYIF was really helpful. We would not have been able to do the MBO without its help. SYIF was the financial ‘bridge’ that we needed. The expertise it provided us with via its Mentorbank was vital to our success and the recent loan is absolutely brilliant. It is working capital and it will help us push our plans forward for an even brighter future."
Jane Siddle, Investment Manager for SYIF, said: "SYIF was only too happy to help Redirack. We have been able to provide them with cash, at times when it was needed, and with mentors who could give them expert advice when it was required. They are a respected and successful local job provider and may soon be helping to put Rotherham on the map internationally by exporting its products."
SYIF can provide 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.
For more information on how SYIF can help businesses, 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).