SYIF completes one of its biggest deals
Published: 12th March 2004
£500,000 loan for Rotherham firm RMF Engineering Ltd
South Yorkshire Investment Fund (SYIF) has completed one of its biggest deals to date - a £500,000 subordinated loan for Rotherham firm RMF Engineering Ltd.
RMF will use the cash to further develop its overseas interests and fund advanced payment guarantees - a payment mechanism often demanded by overseas customers engaged on long term contracts.
RMF, which is based at Dinnington, was established in 1979 under the name of Reactive Metal Fabricators (Anston) Ltd. It was acquired in 1997 by a management buyout team who renamed the company RMF Engineering Ltd.
Commenting on the deal SYIF Investment Manager, Clive Downward, said: "This is a really exciting deal which will ensure RMF completes its very full order book and to be able to secure further large export orders. One of the main objectives of SYIF is to close the funding gap which often prevents SMEs from growing and that's just what we have done for RMF."
One of Europe's leading manufacturers of corrosion resistant chemical plants, the company has supplied equipment to some of the world's leading contractors and chemical companies, including ICI, Exxon, Shell, BP/Amoco, Dupont, Kvaerner, FWEL and Krupp.
RMF has vast experience of manufacturing a range of products including pressure vessels, columns, tanks, shell and tube heat exchangers and piping systems. Its range of materials includes titanium, zirconium, tantalum, hastelloy, nickel alloys and stainless steel.
RMF exports its products worldwide including the Middle East, Singapore, Malaysia, India, Pakistan, China and Russia. The company also has a comprehensive range of clients in the UK who use RMF's extensive design and manufacturing services.
RMF Finance Director, Brian Taylor, said: "This loan is crucial to our export drive and SYIF has been extremely helpful. We are now in a strong position to take the company forward and to be able to service the rapid increase in activity we have seen in the market place over the past 12 months."
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We are thrilled to have been of assistance to RMF. It is a significant deal not only for SYIF but for RMF and the region as a whole. We want to hear from more businesses like RMF - companies that are concentrated on promoting exports and generating employment in the region."
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 £6.5m million in over 83 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.
We can also provide mezzanine loans up to £1.5 million and equity of up to £1 million which means we can finance deals of £2.5 million in total. These investments are to complement existing sources of finance and are intended to bridge any funding gap there may be in an expansion plan.
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.
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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).