Scaffolding firm reaching high for success
Published: 22nd January 2004
From left Steve King of Monarch Scafolding with AndrewChaffer, Investment Manager who led the deal and Jill King from Monarch.
Barnsley firm gets the thumbs up from the Fund
South Yorkshire Investment Fund has put a Barnsley scaffolding firm on track with a £50,000 cash injection.
Monarch Scaffolding Limited, based at Penistone (betweenSheffield and Barnsley), provides scaffolding services to companies specialising in construction and refurbishment.
The business was formed in 2002 by Steve and Jill King. Steve, formerly an advanced scaffolder himself, has 20 years experience and has done every job in the industry from estimator to branch manager. Jill has 10 years business experience in human resources and management development working for large organisations.
SYIF is providing a £50,000 unsecured loan - half of which is being used for new equipment and the remainder for working capital. In the first year of business Monarch grew its workforce from just three to over 20.
Jill said: "We were always able to meet our repayments but some financial institutions were cautious to invest in us. The construction industry is renowned for its volatility making it more difficult for us to obtain the required funding and this was often very disheartening.
"But we have always been confident in our abilities as a business and the support and help we have received from SYIF has been a huge confidence boost for us."
She added: "We are continuing with development and growth within the company. We are moving into new premises later this year that will consist of an 8,500 sq ft warehouse plus 1,200 sq ft of office accommodation. With this property we also have 1.5 acres of land which we will use for future growth."
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We are always looking to assist small companies like Monarch Scaffolding. They have a very bright future and this loan will help them reach their full potential. Encouraging enterprise and innovation can only improve employment and prosperity in South Yorkshire."
The Fund provides loans and equity investments ranging from £15k to £ 2.5m to businesses in, or prepared to relocate to, South Yorkshire. The Fund has already invested over £4.75 million in over 70 businesses.
It offers two key products, one of which is loans ranging from £15k to £150k with effective annual interest rates from as little as 2.4% per annum. Loans are unsecured for the majority of established profitable businesses with unsecured loans of up to £50k available for start-ups or early stage businesses.
The second product is an equity-linked package of a loan with equity options or equity investment, ranging from £50k to £2.5m where the Fund may take a minority shareholding 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 their business more profitably. South Yorkshire Investment Fund also run Capital Network a Business Angels introductory service for early stage businesses in South Yorkshire.
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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).