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
For further details please contact Suzanne Tinkler, on 0845 649 0000.