Fund puts spring in the step of Sheffield firm - Turton Springs plans major £130,000 investment in business
Published: 7th February 2003
From left managing director of Turton Springs Doug Maxwell, Mark Hunter, investment manager who worked on the deal, production director Andrew Bumford and financial director Andrew Eyre, both from Turton Springs.
A Sheffield company, which supplies some of the biggest names in the automotive world including Aston Martin, Lotus and Rolls-Royce, has won the backing of South Yorkshire Investment Fund as it embarks on the next stage of its growth.
Turton Springs Ltd, which has had a presence in Sheffield for more than 100 years, plans a major £130k investment in the business.
They produce a range of engineering springs used in several sectors including automotive, mining and quarrying, doors, railway, oil and gas.
The company was acquired by the management team in 2002 by current directors Andrew Eyre, Douglas Maxwell and Andrew Bumford. They have grown the business substantially since then and it currently employs 50 staff.
The funds will be used to acquire new machinery that will give the company access to further new markets. New coiling machinery will be purchased which will allow for further improvements in product quality, reduced production costs and will give the company an opportunity to win further contracts in sectors previously closed to it.
Financial Director, Andrew Eyre, said: "This represents the first major capital investment since the MBO. It shows the directors’ long-term commitment to a solid established business with a good strong order book. The investment by South Yorkshire Investment Fund is also a massive vote of confidence in our aims and future plans. "
Douglas Maxwell, Managing Director, said: "As part of our continued investment the only way forward is to keep ahead of our competition. With the purchase of two new coiling machines we intend to increase our cold coiling business and offer a product synonymous with a worldclass spring maker.
"These are state of the art British made machines and will enable us to enter new markets at competitive levels with increased volumes the aim."
The company’s product range covers coil, torsion, extension, compression and disc springs, as well as wire forms and torsion bars. Investing in the latest technology it produces springs from a wide range of materials including high tensile steel, tungsten, titanium and nickel alloys. Turton boasts many blue chip companies as clients including Bombardier, Railpart and JCB.
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd,
said: "We are delighted to be able to support Turton Springs in this way. They are offering British-built, quality products and is a good example of the businesses we are seeking to support. Turton’s has a sound basis for further commercial success and the Fund was more than happy to support a company that will continue to grow over the distant future."
The Fund provides development and risk capital ranging from £15k to £1m to businesses in, or prepared to relocate to, South Yorkshire.
It offers two key products, one of which is loans ranging from £15k to £150k with effective annual interest rates from as little as 3% per annum.
The second product is an equity-linked package, ranging from £50k to £1m where the 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 way the Fund can help businesses is the 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).