Fund helps tool firm hammer its way to new premises
Published: 26th August 2003
Martin Newsome shows off his company's new premises to Andy Chaffer, SYIF Investment Manager who led the deal.
The South Yorkshire Investment Fund has provided the tools for a Sheffield company to move to new premises.
J Newsome (Tools) Ltd, which distributes and sells a range of hand tools, has successfully negotiated a £50,000 unsecured loan from the Fund.
Situated on Meadow Street, Sheffield, the company was founded by the late Jack Newsome and has now operated for over 30 years. Jack's son, Martin, joined the company in 1972 and is now its Managing Director.
Employing 15 people, the firm has a range of almost 2000 tools and supplies both trade and DIY markets and has a buoyant export division, selling its goods to seven countries.
Martin Newsome said: "South Yorkshire Investment Fund understood our needs and showed a real grasp of our requirements.
"Markets are getting increasingly demanding of quality and service; consequently the move to larger premises will assist the company in keeping ahead of the game. We expect record sales this year and the loan will be key to our expansion.
"Already exports are running at almost three times the value of the same period last year."
The company also took 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.
SYIF's mentor for Newsome Tools is Peter Pridham, who will be advising the company about logistics, exporting and giving advice about the transfer to the new premises.
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We have the expertise to advise a diverse range of companies. Newsome Tools is an established business with an excellent reputation in their field and a credible business plan to match."
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.
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 profitably.
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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).