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Profile Spring 2007 Newsletter

Cutlery giant cuts new turf with SYIF loan

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Cutting edge of success: (Left to right) Paul Stevenson, Bank of Scotland; Kevin Steven, SYIF; Derek Saveall, HSBC; Mary Broadhead, SYIF; Patrick Thornhill, Managing Director of Richardson Sheffield; Tom Lehane, Finance Director Richardson Sheffield, and Stephen Ingram, Ingram Forrest.

One of Sheffield's longest-established cutlery firms has relocated to new premises courtesy of a South Yorkshire Investment Fund (SYIF) loan.

Prestigious cutlery and knife specialist, Richardson Sheffield, has moved from its original site in the city centre to a site in Handsworth following a successful management buy-in (MBI).

The company secured a £400,000 capital and development loan from SYIF to fund the relocation and a £50,000 small business fund loan to help with future expansion of the business.

Tom Lehane, Finance Director at Richardson Sheffield, said: "When we completed the management buy-in back in 2005, we knew that our existing premises had already been sold and that re-location was going to be part of the deal for us.

"The funding package from SYIF has not only secured the future of our workforce, but has also opened up possibilities for growth of the company, which is our long-term goal.

"Richardson Sheffield has a long and esteemed history, which we aim to build upon. Our relocation has made the company much more efficient through a more compact and streamlined production layout and it has placed us in a great location to access major distribution routes, being only five-minutes away from the M1 motorway.

"We fully intend to capitalise on these new efficiencies and on our heritage to firmly establish Richardson Sheffield as the city's premier knife and cutlery manufacturer."

Richardson Sheffield was established in 1839 and now employs 67 staff. The move to Handsworth removes the difficulties posed by restricted access at the company's original Russell Street city-centre site.

Richardson Sheffield was introduced to SYIF by Ingram Forrest Corporate Finance, following which lead advisor for the deal Stephen Ingram was appointed mentor as part of SYIF's mentorbank facility.

Lead banker for Richardson Sheffield for the MBI is Derek Saveall of HSBC while Paul Stevenson at Bank of Scotland Corporate funded the property acquisition with SYIF.

Mary Broadhead, Investment Director at South Yorkshire Investment Fund, said: "We were keen to support what is a long established, well-known Sheffield company that is managed by a strong, committed management team. The facilities acquired with the assistance of SYIF will support the growth plans being pursued by the management team."

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).