Floatation Returns more than 8 Times Money
Left to Right, Paul Gower of South Yorkshire Investment Fund, Phil Catton, Production Director, John Brown, Engineering Director, and John Hayward, Managing Director of Chesterfield Cylinders.
South Yorkshire Investment Fund has achieved an internal rate of return of 125 percent and a cash multiple of 8.5x on its original investment, after the successful floatation of Pressure Technologies Plc on the Alternative Investment Market (AIM).
YFM Venture Finance has also achieved a similar return for its Yorkshire & Humber Equity Fund (YHEF)
The two funds still retain a small stake in the AIM listed business.
Pressure Technologies plc is the parent company of Chesterfield Special Cylinders, the Sheffield business that designs, manufactures, tests and refurbishes a range of high pressure seamless cylinders.
In August 2004 the Yorkshire & Humber Equity Fund invested in the original Management Buy Out led by John Hayward and four colleagues from its German parent company. This was followed by a further investment of capital from South Yorkshire Investment Fund and grant aid from Yorkshire Forward which enabled the firm to move their operation to the Don Valley and re-equip the business.
Over the last 24 months the company's new owner-managers have re-organised and driven a rapid expansion of the businesses. The success of the Pressure Technologies Initial Public Offering (IPO), which was oversubscribed, has raised more than £6 million and given the company the financial muscle it was looking for to continue its expansion programme.
Tony Goulbourn, Chief Executive of SYIF, said: " We are delighted with the return on our investment and to have helped Pressure Technologies fund the move to the Sheffield area which enabled them to achieve their growth and development objectives".
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).