Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
• Strengthening relationships with stakeholders, partners, intermediaries and clients
• Demonstrating how we are working in partnership with our LEP to support business growth
• Looking to the future
• Dialogue and questions www.finance-yorkshire.com

Finance Yorkshire
• Ian Kelly, Director, Finance Yorkshire
• Alex McWhirter, CEO, Finance Yorkshire
• James Trowsdale - Local Enterprise Partnership
• Seedcorn Case Study – Ed French, Tangentix
• Business Loans Case Study – Tom Sharp, The Beautiful Meme
• Equity Linked Finance Case Study – Haydn Beeken and Brian
Geldart, Turbine Efficiency
• Questions & Answers www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
£90m Venture Capital and Loan Fund
Finance sourced from:
£30m European Regional Development Fund
£15m Yorkshire Forward/Business Innovation and Skills
£45m European Investment Bank www.finance-yorkshire.com

Finance Yorkshire
• To fully invest the £90 million fund through helping SME’s constrained by finance to grow
• To create a sustainable fund
• To be recognised and respected as a key participant in the
SME business and professional sectors
• To stimulate demand for finance in our key market segments
• To realise good returns for investors and value for money www.finance-yorkshire.com

Finance Yorkshire
• 340 investments totalling over £37.8 million
• On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage
• On track to achieve full investment by December 2014 www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
• Created or safeguarded 5620 jobs
• Over £64 million Private Sector Leverage, resulting in £2 levered for every £1 invested
• £44.2 million in value added sales
• Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019 www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
Sector
Business Services
Sector Analysis – All Funds
Application Process (%) Investments (%)
12%
Engineering / Industrial products / Materials 24%
18%
25%
Financial Services
Healthcare / Pharma / Bioscience
1%
14%
1%
7%
ICT / Software / Telecoms / Media
Leisure / Hospitality
Renewables / Energy / Cleantech
Consumer / Food & Drink
Other
21%
1%
6%
6%
15%
12%
2%
7%
10%
18% www.finance-yorkshire.com

Finance Yorkshire
• A business with growth potential
• A new start or growing business
• A business unable to source its full funding requirement from the commercial market
• SME’s paying business rates in Yorkshire and the Humber or relocating to the region www.finance-yorkshire.com

Finance Yorkshire
• Seedcorn Finance
• Business Loans
• Equity Linked Finance www.finance-yorkshire.com

Finance Yorkshire
• Start up or early stage innovative businesses
• Involves strong technological ‘know-how’ and credible founders
• First products or services developed with potential for rapid growth
• Can invest up to £780,000 over the lifetime of the business through equity-based, tranched investments
• Investments of £2m+ when syndicating with other funds www.finance-yorkshire.com

Finance Yorkshire
 Start up that develops sustainable construction materials
 £675,000 Seedcorn Fund investment
 Company moved premises and expanded workforce as a direct result of investment
 The company has rapidly growing revenues and has plans to develop new products www.finance-yorkshire.com

Finance Yorkshire
• Fixed rate loans typically between £15,000 - £150,000 as syndicated or complete financial packages for businesses
• Financial packaging with other forms of debt finance including the banks
• Range of investments include; Working Capital, Capital
Expenditure, Investment in Premises and development capital www.finance-yorkshire.com

Finance Yorkshire
 Specialises in fire alarms, CCTV, intruder alarms and access control systems
 £150,000 Business Loan for working capital, management and customer service training programmes
 Plan to expand Hull headquarters and expand its operating area www.finance-yorkshire.com

Finance Yorkshire
• Equity-linked investments from £100,000 to £2m and
Mezzanine loans
• Some start ups, largely growth, development capital or expansion
• Work alongside other finance providers to invest in larger transactions
• Tailored deal structures to give maximum benefit to the investee companies www.finance-yorkshire.com

Finance Yorkshire
 An international manufacturer and supplier of specialist and hygienic doors
 £600,000 Equity Linked investment to support the company’s marketing, recruitment and research and development programmes
 Looking to grow its distribution network and to build relationships with key partners www.finance-yorkshire.com

Finance Yorkshire has:
• completed 340 investments
• Invested a total of £37.85m
Seedcorn Finance – 43 investments totalling £7.76m
Business Loans – 267 Investments totalling £14.84m
Equity Linked Finance – 30 Investments totalling £15.25m
www.finance-yorkshire.com

Finance Yorkshire
Working alongside the commercial market;
• Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow
• Market making effect, making deals happen by spreading the risk with other investors and lenders
• Co-investing with other lenders and funds www.finance-yorkshire.com

Finance Yorkshire
Humber, Local Enterprise Partnership www.finance-yorkshire.com

Finance Yorkshire Roadshow
21 March 2013
Mercure Grange Park Hotel, Willerby

About the Humber LEP
• Role: To attract new investment and generate growth for existing businesses
• Business-led
• Board of 14 provides leadership and direction
• Chaired by Lord Haskins of Skidby
• Supported by a small core staff and partners

About the Humber LEP
Key activities:
• Economic leadership
• Links with Government
• Marketing the Humber and developing the Humber
‘offer’
• Encouraging collaboration

A Plan for the Humber 2012-2017
• Launched October 2012
• “The Humber’s shared priorities for growth for the next five years.”
• “The LEP exists to provide leadership and bring people together, not to take on everything itself.”
• “A more focussed, more determined Humber…more united than ever before.”

Context for the Plan
• Period of relative economic decline
• National and international economic difficulties
• Dependency on state funding
• “There’s no money.”
But two positives:
• The big energy opportunity
• Stronger public/private commitment to work together

Realising the true potential of the Estuary
LEP and partner activities
• Enterprise Zones – 484 hectares with incentives
• Regional Growth Fund - £66m+
• Centre for Offshore Renewable Engineering (CORE)
• Enterprise Zones Skills Plan
• Marketing – Humber Renewables

Delivering the leadership for growth
• A new relationship with Government – taking on more responsibility (through a City Deal)
• A new way of working in the Humber – stronger partnerships and engagement
• A new way of working with our neighbours – mature relationships

Addressing the barriers to growth
• Heseltine Review
• ‘Single Pot’
• Skills Commission
• Infrastructure – lobbying and Local Transport Body
• Humber brand and perceptions
• Exports and international trade
• Small business support
• Planning and regulation

Business Loan Fund
• £8m+ allocated to the Humber through the growing places fund
• Loan funding for stalled capital projects
• 2 nd Round of applications closed in November, currently completing due diligence and contracting with successful projects

Growing the Humber (RGF3 programme)
• Secured £30m from the Regional Growth Fund (RGF3)
• February 2013 to December 2014
• Create new employment in the private sector (Target =
1500 new jobs)
• Matched with private sector investment (Target =
£ 125m private sector investment)

Growing the Humber (RGF3 programme)
• Grants are available for businesses
• North East Lincolnshire Council Accountable Body
• Complements RGF programmes in
North Lincolnshire ( £ 10m)
Hull & East Riding - Green Port Hull ( £ 25.7m)

Programme Summary – 2 strands
• South Humber Bank Renewables Programme =
£10m
Includes £7m of Business Investment Grant for the renewables industries
• Humber wide Business Investment Grants for priority sectors and their supply chains= £20m

Key aims
• Create sustainable private sector jobs
• Provide investment through match funding – every £1 of RGF funding must be matched with £4 of investment
• The project must be based in the Humber area
• Must prove that the grant is needed

Key Information
• Information can be found on www.humberlep.org
• Expression of Interest template
• Eligibility Criteria
• Programme Guidance
• Contact the LEP team on tel: 01482 485260
• Email – funding@humberlep.org
Monthly deadline for Expressions of Interest = 12 th April

Eligible Activities
• Capital Expenditure on fixed assets
• Land – purchase, reclamation or laying out of land
• Buildings – construction, preparation, replacement, extension of buildings and other structures or associated fixtures and fittings
• Plant and Machinery – purchase, installation or replacement
• Lease must be at least 5 years
• Wage subsidies for engineering apprenticeships
• Research & Development
• Specific research – not capital purchase
• Based on job creation

Ineligible activities
• Purchase of transport equipment or road freight transport vehicles
• Working Capital
• Marketing costs
• Relocation of existing business from out of the area with no demonstrated growth
• Business Rates
• Business Support
• Ongoing costs post December 2014
Full details see www.humberlep.org

Ineligible activities
• Relocation of existing business from out of the area with no demonstrated growth
• Firms in difficulty
• Retail Sector
• Hospital/Medical/Care Sector
• Defence
Full details see www.humberlep.org

Ineligible activities
•Schools/Colleges
•Tobacco Related Products
•EC Sectoral Restrictions fisheries and aquaculture sectors primary production of agricultural products coal sector steel sector synthetic fibres sector
Full details see www.humberlep.org

Investment Levels
• Programme Investment ratio of 1 to 4. Therefore every £50,000 grant requires £200,000 investment from other sources.
• The minimum level of grant which can be requested is £50,000.
• The maximum level of grant is £2.5m – we expect most applications to be substantially lower than this.
• The level of grant is determined by state aid rules – this depends on location, type of business and size of company.
• Assisted Area plays key role is determining grant level

Key appraisal tests
• Jobs created
• Grant must create sustainable jobs within 3 years
• Programme ratio must be better than £20,000 per job.
• Additionality
• Will the project go ahead without RGF support?
• Viability
• Is the project financially viable?

How to apply
• Expression of Interest Form to be submitted online by
12 th April 2013
• If initial eligibility checks passed the applicant will be asked to submit a full application
• Support will be available for Economic Development
Officers from local authorities.
• Decisions regarding grants will be made by private sector Investment Panels

Working with Finance Yorkshire
• Co-investment for businesses projects (Business
Growth Programme grants / Finance Yorkshire
Loans)
• Signposting
• Cross reference of applications
• Co-promotion and marketing
• Advice on project appraisal

Key Information
• Information can be found on www.humberlep.org
• Expression of Interest template
• Eligibility Criteria
• Programme Guidance
• Contact the LEP team on tel: 01482 485260
• Email – funding@humberlep.org
Deadline for Expressions of Interest = 12 th April 2013

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Turbine Efficiency
Group
Presented By:
Alan Hawkins - CEO
Brian Geldart – Group Financial
Director
Thursday 21 st March 2013

Witham St Hughs
Lincoln
Finningley
Doncaster
• Turbine Efficiency created in 2001
• Engineering Light Industrial Gas Turbines
• Turbine Support Facility ( Witham St.
Hughs)
• Group HQ ( Finningley Doncaster)

Power Services
Our Location

Power Services
Our
Market Place

• Grown steadily over past 10 years
• Established provider to blue chip companies since
2001
• Reliability, Economy and Efficiency in partnership

We Deliver to our customers:
• A comprehensive and innovative service .
• Focused on cost effective use.
• If our customers don’t make a profit then neither do we.

• New company formed as part of new investment
• Based in Doncaster
• Enabled us to leverage our expertise
Equipment Relocation
Training

• Summer 0f 2011 business review
• We had outgrown our service facility in Lincoln
• Were split over 2 sites and unable to develop.

• Orders and opportunities growing fast
• We had an ambitious growth strategy.
• We were stuck

• By recommendation .
• Contacted by Finance
Yorkshire
• Timing was right
• Finance from other sources not ambitious enough

• Application with support of FY adviser.
• Due Diligence - Financial,
Commercial & Legal
• Intense 4 month period.

• More attention to depth of our 3 year forward plan.
• This helped us in developing our future strategy.
• Even if we failed we would achieve greater understanding.

• Successful application

• The money arrived -
Immediately!
• Ownership balance changed.
• Current engagement is at Board level via Ian Brown
• Involvement without stifling us.

• New state of the art facilities
• Great shop window for customers
• Brought in some serious players to talk to us – we are all grown up now.
• Developed significant opportunities world wide.

• Sales Growth of 30%
• People Growth of 20%
• 6 new jobs in Yorkshire with a lot more to come.
• This can work well for you.

• Your Capability
• Your Capacity
• Your Time
• But….
• You get good Communication
• Good support
• Especially on the Financial side.

• Our relationship with Finance Yorkshire has been a game changer.
• It has enabled us the transform our business.
• Its hard work and so it should be.
• BUT if you believe you can do it go for it.

Finance Yorkshire
• Work collaboratively with the Humber LEP and Local
Authorities
• Creating the next gap fund for SMEs after 2014
• Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs www.finance-yorkshire.com

Finance Yorkshire
• Call us to make sure it’s eligible 0845 649 0000 or make enquiry via website www.finance-yorkshire.com
• An Investment Manager will contact you to discuss.
• Complete Application Form & the supporting information when advised by the Investment Manager.
www.finance-yorkshire.com

Finance Yorkshire
Finance Yorkshire Ltd is a company limited by guarantee (Registered No 07075478). Finance Yorkshire Ltd (0845 649 0000) comprises three sub funds, Finance Yorkshire
Equity Fund, which is managed by Neon Capital Partners Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business Loans Limited and Finance Yorkshire
Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Services Authority.
www.finance-yorkshire.com