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Swallownest Engineering Flying High

Published: 8th May 2003

A Rotherham engineering firm is gearing up for the future after winning the support of South Yorkshire Investment Fund with an unsecured loan of £50,000.

Swallownest Engineering Company Ltd, incorporating sister company Supergears Ltd, specialise in providing support to local industry by supplying a wide range of precision machined components which are used in the manufacturers own production process.

The company also services industrial machinery transmissions and makes transmission parts.

Employing 30 staff and run by directors Mike Smith, Steve Sample and Ian McCrossan, the company will use the loan to expand and develop the business further with a major investment in new machinery at the Rotherham plant.

The company has also taken advantage of the Fund’s Mentorbank project, which provides subsidised mentoring support to help management teams grow the business more profitably.

This unique feature of the Fund can help businesses develop in areas where they may not have the full expertise in-house. In Swallownest’s case the
appointed mentor will help the company re-brand and develop marketing activity for the sister company Supergears.

Mike Smith said: "The loan has been a huge benefit to our organisation - bringing much needed investment to replace existing machinery. Coupled with help from the Mentorbank project, I am sure our involvement with the Fund will pay off in a big way."

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "Our aim at the Fund is to promote a whole range of businesses and we are delighted to be able to help Swallownest Engineering. The Fund’s aim is to encourage new and existing businesses with competitive loans and by offering our unique Mentorbank service."

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.

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.

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).