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Fund gives support to Rotherham firms

Published: 5th June 2003

South Yorkshire Investment Fund is still attracting huge interest from both existing and new businesses in Rotherham.

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "It is our job to back businesses which will bring growth to the economy of South Yorkshire and we have helped many in Rotherham.

"With our knowledge of the area and our depth of expertise we have been able to encourage companies who would otherwise find it difficult to raise money elsewhere."

Rotherham firms to get support include engineering companies Elite Tooling Ltd and Swallownest Engineering Company Ltd (incorporating sister company Supergears Ltd) and Advanced Sewer Products Ltd.

Elite Tooling secured a £40,000 loan, which will be used to create a new range of specialist tools, transforming itself from distributor to manufacturer.

Formed in 1996 by directors Bob Hill and Lyndsay Butterfield, the company is now expected to turn out more than 12,000 tools a year. Mr Hill said: "The loan was absolutely crucial to our plans to launch a manufacturing element to the company."

Engineering firm Swallownest won the support of the Fund with an unsecured loan of £50,000. It specialises in providing support to industry by supplying a wide range of precision-machined components.

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 their Rotherham plant.

Advanced Sewer Products received a combined investment of £95,000 from the Fund and a syndicate from the Funds’ business angels network, Capital Network.

The company has designed a new drain stopper to the construction industry. The patented product has overcome many of the traditional problems of the slow and messy installation of existing drains bungs. It is much quicker to install and is more stable in the pipe. It can be retrieved without entering the manhole, avoiding a torrent of sewerage that fills the chamber when the bung is released.

South Yorkshire Investment Fund offers a series of loan and equity packages ranging from £15k to £1m, which are structured to support businesses through critical stages of growth. A unique feature of the Fund is its Mentorbank project, which provides subsidised mentoring support to help management teams grow the businesses more profitably.

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).