Fund Helps World Leader Secure New Funding
Published: 9th October 2002
Helping reinvent the wheel: Managing director of Bartec Auto ID Colin Webb with Tony Goulbourn, chief executive of South Yorkshire Investment fund and Andrew Chaffer, investment manager from South Yor
From left, Tony Goulbourn, Andrew Chaffer of South Yorkshire Investment Fund and Colin Webb from Bartec Auto ID
From left, Andrew Chaffer of South Yorkshire Investment Fund Colin Webb from Bartec Auto ID and Tony Goulbourn from South Yorkshire Investment Fund.
South Yorkshire Investment Fund is helping Barnsley firm Bartec Auto ID Limited to stay ahead of competitors and remain at the leading edge of its technology.
The Fund provided the company with an unsecured loan of £50,000 and also helped it obtain a £34,800 loan with National Westminster Bank under the Government's small firms loan guarantee scheme.
Formed in 1992, Bartec Auto has developed a range of radio frequency readers designed to program in-car computers to measure the air pressure in car tyres, which not only alerts the driver to a possible blow-out but will also help petrol efficiency.
Based at the Barnsley Business and Innovation Centre, Huddersfield Road, the firm operates in some of the toughest markets in the world including the United States, Canada, Japan, France and Sweden.
The company has grown very quickly, doubling both its turnover and workforce and it now has 70 per cent of the market.
Colin Webb, managing director of Bartec, said: "This extra funding will enable us to maintain our lead in the niche export markets and keep us at the forefront of our technology. It will help us develop new products and support our continued growth.
"We have a very full order book and are proud of the work we do with motor giants such as Ford, GM, Daimler-Chrysler, Renault, Volvo and Nissan."
He added that the technology - radio frequency identification - was becoming increasingly important in the motor trade, with new laws in the US making it compulsory on all vehicles by 2006.
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund, said: "We were delighted to get involved with this highly innovative and exciting company, who are clearly world leaders in their field. They have the potential to grow and provide more jobs for the area and is the kind of company 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 three per cent.
The second product is an equity-linked package, ranging from £50k to £500k where an investor takes a strategic 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 of 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).