Home > News & Events > January 2004 > News Article

Fund gives £50k boost to innovate Doncaster company

Published: 28th January 2004

Large Picture

At Pyronix in Rotherham (one of Metro Technologies major customers). From left, John Sarrington the Investment Manager who led the deal, Julie Kenny, Managing Director of Pyronix, and from Metro Technologies Managing Director Craig Jones and Sales and Marketing Director David Cotton.

Metro Technologies moves forward with new products

South Yorkshire Investment Fund has given a boost to Doncaster based Metro Technologies with a loan of £50,000.

Metro Technologies produces and supplies a range of highly technical components for global electronics manufacturers and is also in the process of developing new products. It exports its products to China, Taiwan, Thailand, Europe, USA and Mexico

Incorporated in 1998 the company relocated to the South Yorkshire region in 2002 to take advantage of the support offered to business by organisations like the Fund and to benefit from the indigenous engineering and metallurgy skill base.

Craig Jones, Managing Director of Metro Technologies, said: "The SYIF secured loan has been a great help in easing our cash flow as we continue to develop and improve new products which is an important aspect of Metro's ethic of high standards of production."

Metro Technologies has also signed up to join the Fund's Mentorbank project which provides subsidised mentoring support to help management teams grow their business more profitably.

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: 'We are delighted to be able to help small businesses like Metro Technologies particularly as they continue to support manufacturers in the South Yorkshire region. They are a very innovative company who continue to develop in a very competitive market.

"We are also pleased they have decided to join up to the Mentorbank - which has proved to be very popular with a number of businesses in the region.

As well as the loan from SYIF, the company is on the European funded High Growth Start Up Programme and has also benefited from IFG2 - the new scheme funded by the European Regional Development through Objective 1, and managed by Business Link South Yorkshire.

The Fund can provide 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 £4.9 million in over 77 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.

The second product is an equity-linked package of a loan with equity options or a 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. Where appropriate Business Angel finance can also complement South Yorkshire Investment fund packages.

IFG2 is managed by Business Link South Yorkshire and is available to SMEs in South Yorkshire to apply for funding support after a business health-check. For more information on IFG2, companies should call 0800 073 7474.

Picture caption: At Pyronix in Rotherham (one of Metro Technologies major customers). From left, John Sarrington the Investment Manager who led the deal, Julie Kenny, Managing Director of Pyronix, and from Metro Technologies Managing Director Craig Jones and Sales and Marketing Director David Cotton.

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.
http://www.finance-yorkshire.com

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).