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
• Jennie Adams, Director, Finance Yorkshire
• Alex McWhirter, Chief Executive, Finance Yorkshire
• James Trowsdale, Local Enterprise Partnership
• Gerard Toplass, Frillo Ltd – Seedcorn Investee Company
• Neil Bangham & Richard Stow, Weedfree Limited – Business Loans
Investee Company
• Mark de-Villamar Robers, Envirodoor Ltd - Equity Linked
Finance Investee Company
• 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 UK Government
£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
• 543 investments totalling over £67.5 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
www.finance-yorkshire.com

Finance Yorkshire
• Created or safeguarded 6608 jobs
• Over £140 million Private Sector Leverage, resulting in
£2.12 levered for every £1 invested
• Generated £84m in increased turnover
• 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
The Humber
LEP Area - Activity
Enquiries Applications
Number % of total Number % of total
Investments
Amount
(£000) % of total
Kingston upon Hull
156 36%
East Riding
177 41%
North East Lincolnshire
North Lincolnshire
47
50
11%
12%
37 42% £ 1,405 34%
39 44% £ 2,575 63%
7
6
8%
7%
£
£
15 0%
80 2%
Total
430 100% 89 100% £ 4,075 100% www.finance-yorkshire.com

Finance Yorkshire
Amount
Invested
£000
Investments
(%)
Amount
Invested
£000
Investments
(%)
Amount
Invested
£000
Investments
(%)
Location
Seedcorn
The Humber £ 450 11%
Business Loans
£ 2,175 53%
Equity
£ 1,450 36% www.finance-yorkshire.com

Finance Yorkshire
Sector Analysis – All Funds
Sector
Application
Process (%)
Business Services 13%
Engineering / Industrial products / Materials 25%
Financial Services 2%
Healthcare / Pharma / Bioscience
ICT / Software / Telecoms / Media
Leisure / Hospitality
Renewables / Energy / Cleantech
Consumer / Food & Drink
Other
12%
19%
1%
6%
7%
16%
5%
12%
2%
7%
10%
Investments
(%)
17%
27%
2%
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
Up to £780k
£15k - £250k
£100k - £2m www.finance-yorkshire.com

Finance Yorkshire
• Start up or early stage innovative business during the fund’s early period, but now focussed on more mature innovate businesses that are self-sustainable with our investment
• Based on strong and unique technology, know-how or content that will usually be protectable
• Have potential for rapid growth and multiple returns of the original investment
• Based in or have significant activity in Yorkshire and
Humber www.finance-yorkshire.com

Finance Yorkshire
• Carlton Manufacturing - Moved to larger premises and radically changed its manufacturing process following Finance Yorkshire investment
• Xeros – Finance Yorkshire invested a total of £1.45 million over three funding rounds. Market capitalisation of £80m when admitted to AIM in March 2014
• Faradion – Latest round of funding included investment from trade partner
Haldor Topsøe. The investment will enable the company to further develop its technology as well as to do small scale production of their next generation battery materials www.finance-yorkshire.com

Finance Yorkshire
• Fixed rate loans typically between £15,000 - £250,000 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
 Green Peas Solutions - Business Loan enabled company to invest in research and development and expand its innovative packaging range.
 William Beckett Plastics – Business Loan enabled the company to do a comprehensive refurbishment programme of three machines that mould its range of packaging.
 Broder Metals – Business Loan to assist with a move to larger premises and to enable them to refit and refurbish the premises to their requirements www.finance-yorkshire.com

Finance Yorkshire
• Some start ups, largely growth, development capital or expansion
• Types of investment packages include:
 Loans with Profit Participation - for established businesses generating turnover of over £5m
 Mix of Loan and Equity - for younger businesses with turnover of less than £5m
 Equity only Investment - for early stage businesses with plans for rapid growth www.finance-yorkshire.com

Finance Yorkshire
 MTP Innovations - Using the £400k investment to expand its product range and customer base
 Noel Village – Using the £750k investment to invest in new heat treatment
 Magnomatics – Using the £1.1m (part of £2.5m package) to develop products, create new jobs and expand its global customer base.
www.finance-yorkshire.com

Finance Yorkshire has:
• Completed 543 investments
• Invested a total of £67.5m
Seedcorn Finance – 62 investments totalling £12m
Business Loans – 408 investments totalling £25.5m
Equity Linked Finance – 73 investments totalling £30m 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
www.finance-yorkshire.com

James Trowsdale
Humber LEP
Investment Manager

• Role: To attract new investment and generate growth for existing businesses
• Area: North Lincolnshire, NE Lincolnshire, Hull & East
Riding
• Business-led
• Board of 16 provides leadership and direction
• Chaired by Lord Haskins of Skidby
• Supported by a small core staff and partners

• Enterprise Zones – 484 hectares
• Regional Growth Fund - £66m+
• Business Loan Fund - £8m
• EU Structural & Investment Funds – c£87m
• Strategic Economic Plan – £62m request in 15/16

• Siemens
• Able Marine Energy Park
• Hull – Selby line electrification
• Hull: City of Culture 2017
• Expansion of Assisted Areas (to cover Scunthorpe)
• Enterprise Zones extended until 2020
• City Deal
• Growth Hub

• £8m+ allocated to the Humber through the growing places fund
• Loan funding for stalled capital projects
• Open for applications
• Process = EOI submitted & reviewed by Investment
Board, best projects invited to submit full applications with supporting information. Due diligence carried out on shortlisted project. Contracts agreed.

• Open to all businesses of any size and sector
• Aim to create jobs as quickly as possible
• Contribute to Humber economy
• Ideally planning permission in place
• Interest rate determined by EU Reference Rate
• Capital projects e.g. Infrastructure & buildings machinery

• £500,000 loan provided to build new access road, drainage and utility services
• 6.5 acres of land opened up for development of hotel, restaurants, a public house (Greene King), nursery, gym

• £500,000 loan provided to acquire new plant and machinery, refurbish existing equipment and factory enhancements.
• 34 jobs created

• £30m from the Regional Growth Fund (RGF3)
• £20m - Humber wide Business Investment Grants for priority sectors and their supply chains
• £10m - South Humber Bank Renewables Programme
• Aims to create 1500 new jobs and lever £125m of private sector investment by March 2015.
• Additional £1m from Growth Hub bid (part of £2.5m bid)
• Complements RGF programmes in
• North Lincolnshire (£10m)
• Hull & East Riding - Green Port Hull (£25.7m)

• EOI submitted to Humber LEP – LEP/NELC Officer check for eligibility
• If eligible – Full application form sent
• Upon receipt of application checked by LEP/NELC Officers and appraised by Officer group from each Humber local authority*
• Appraisal summary, application and supporting documents sent to
Investment Board *
• In principle decision made
• Contract documents drawn up by NELC
• Monitoring/claims by NELC
* Due diligence potentially requested

• 400+ EOIs received (250+ invited to full application)
• 150+ full applications received
• 52 projects ‘live’ - £10.1m RGF, 850 jobs, £56m investment levered
• 22 projects in contracting
• 17 projects approved with conditions/due diligence
• Funding still available

• 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 £20,000
(£5,000 for renewables projects in N & NE Lincs).
• The maximum level of grant is £2.5m –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
• Is the project viable and deliverable?
• Spend must be in 2014

• £80,473 grant (£804,734 total project cost)
• 35 new jobs
• Pet food manufacture
• Project is to purchase and install a full packaging line offering more efficient production

• £334,000 grant (£3,880,000 total project cost)
• 35 new jobs
• One of the UK's leading manufacturers of MDF vinyl wrap doors and accessories
• Factory expansion from 45,000 sq ft to 83,000 sq ft.

• £21,600 RGF grant (£108,045 total project cost)
• 5 new jobs
• Manufactures bespoke cable assemblies, wiring looms, and control panels for a variety of industries such as Military, Medical, Automotive, Domestic and
Agricultural
• Purchase a machine that will remove the necessity to cut and tin wires by hand

• £1.1m grant
• Supports the firm’s £11.5m plan to establish their offshore engineering and operations and maintenance bases at the Port of Grimsby and the Royal
Dock on the Humber’s south bank.
• An estimated 100 direct jobs are expected to be created by March 2016
• Another 100 to come later as part of ongoing developments.
• More than 475 indirect jobs are set to be created in vessel and offshore related services

• Information can be found on www.humberlep.org
and https://www.nelincs.gov.uk/business/regional-growthfunding/employment-skills-development
• Expression of Interest template
• Eligibility Criteria
• Programme Guidance
• Contact the LEP team on tel: 01482 485260 or NELC on (01472)
325949
• Email – funding@humberlep.org
Deadline for Expressions of Interest = Monthly deadlines

Finance Yorkshire
www.finance-yorkshire.com

Finance Yorkshire
www.finance-yorkshire.com

Neil Bangham – Managing Director
Richard Stow – Contracts Director
1967 – Weedfree
2002 – Weedfree-on-Track
2004 – Management Buyout (Railclear)
2011 – Finance Yorkshire (FY)

Introduced to FY by Brown Butler Chartered Accountants
Initial speedy application & acceptance process
Despite tough challenges FY investment managers been extremely helpful
Seasonal finance provided by FY in Winter/Early Spring during 2011, 2012, 2013 & 2014

From Mid 2012 we have gone from strength to strength
2013 very successful, 2014 trading very well so far
Would highly recommend FY services to other Companies

Finance Yorkshire
www.finance-yorkshire.com

presentation by: representing:

INDEX
3.
4.
5.
1.
2.
INTRODUCTION TO ENVIRODOOR
BRINGING FINANCE YORKSHIRE ON BOARD &
TIMELINE TO INVESTMENT
HOW HAS THE INVESTMENT HELPED THE BUSINESS?
OUR EXPERIENCE OF FINANCE YORKSHIRE
OUR FUTURE WITH FINANCE YORKSHIRE

Introduction to a privately family owned group of companies for over 40 years

“ One of the
World’s Leading Names in
Specialist Industrial and
Hygienic Doors ”
………. based in Hull !!

Based in Hull, East Yorkshire and operating throughout the UK and
Ireland via a network of sales and field engineers
Specializing in providing solutions, manufacture, installation & aftersales preventative maintenance of specialist industrial and hygienic door systems
Comprehensive service and repair business throughout the UK and
Ireland with rapid response times and 91% “first time fix”
Suppliers of unique rapid action (bi-parting and vertical), translucent stacking, sectional overhead, hygienic and cleanroom doors
Over 40 years of research & development, manufacturing expertise, market leadership across an array of sectors offering “ Tomorrow’s
Technology
– Today ”
Our Scandinavian subsidiary company, Interdoor AB, based in Ystad,
Sweden is one of Europe’s largest manufacturers of hygienic GRP doors and specialist steel doors

• Acoustic doors
• Cold store doors
• Crash doors
• Fast action doors
• Fire doors
• GRP Hygienic doors
• Hangar doors
• Hygienic Polyethylene doors
• Specialist Industrial doors
• Security doors
• Sliding doors
• Stacking doors
• Steel doors
• Swing doors
• Waterproof / Wet room doors
Product Range

Service and Repair
Experienced and highly trained door engineers
Qualified office based administration team
24 hour rapid response emergency visits
91% “first time fix”
Comprehensive knowledge of all industrial doors

• Automotive
• Aeronautical/Aviation
• Food & Non-Food Manufacturing
• Warehouse & Distribution
• Energy
• Emergency Services
• Film/TV/Theatre
• Healthcare/Pharma & Medical
• Leisure
• Marine
• MoD
• Retail
Sectors

Some of our Customers

WHAT WAS OUR INVESTMENT FROM

INVESTMENT
WHAT WERE THE OPTIONS?

OWNERS’ REQUIREMENTS
• Desire to “substantially grow” the business
• Growth was only possible with significant investment
• Not to be “endlessly” repaying debt
• Present a well capitalised business to the market
• No personal guarantees being offered
• A genuine belief that owning a smaller percentage of a much larger entity is better and more secure than owning a larger percentage of a smaller entity

MAINSTREAM LENDERS?
NO!
• Debtor book already taken
• No fixed assets of any material value
• No personal guarantees available
Therefore, no security to offer mainstream lenders which is a requirement

INVESTMENT
In order to raise the required finance
AND meet our requirements our decision was
50% Equity and a 50% Mezzanine Finance
In total: £600,000

BRINGING
ON BOARD
AND TIMELINE TO INVESTMENT

TIMELINE
•
Late May 2012
– contacted FY and met with Andrew Burton and team
• End June 2012 – Business Plan and Financials submitted
• Early July 2013 – Agreement in principle reached
• Mid July – introduced to Investment Director (Ash Chopra)
• End July 2012 – FY due diligence commences
•
Mid August
– Due Diligence Completed (incl DD on Swedish company)
•
End August
– Legal Process Commences
•
End September 2012
– completion of investment

HOW HAS THE INVESTMENT FROM
HELPED?

• Investment made 1 October 2012
• 2012 Audited Accounts:
Turnover:
Net Loss:
£2,590,000
(£30,000)
• Significant investment at end 2012 and beginning of 2013 made in resource and marketing (resource and strategy)
• 2013 Audited Accounts:
Turnover:
Net Profit:
£3,800,000
£50,000
Growth since FY investment: 45%

THE NUMBERS SPEAK FOR THEMSELVES!
Could we have done this without investment?
… NO

EXPERIENCE OF

• General opinion that Equity Funders seek to “control” the business
What is our experience with FY?
• Initial high level of control (lasting 3 months)
• Imposition of high level reporting - different to what we were used to
•
Once FY had seen the business was running well
– very little control
• Quote from Envirodoor’s FY Portfolio Manager:
“ This is your business, not ours. You run it in the way you want it run. I just want to make sure that we receive a return in 5 years and that you don’t go bust in the meantime.
”

FY’s Impact on business
New reporting measures Initially a “pain” but only because it was “new” to us
BUT , once everyone in the business were used to the reporting systems:
FY’s requirements provided the business with:
• excellent reporting systems
• new KPIs to help run the business and assist it to grow
• easy analysis of key areas of the business using “dashboards”
• made the business easier to manage
Honest Appraisal:
“FY’s input and requirements have been a huge help to the business and not a hindrance”

OUR FUTURE WITH

Need to repay loan and give return on investment!
BUT
IN ADDITION TO THIS:
Envirodoor has ambitious acquisition plans
“£1.2million available to Envirodoor in 2014 for further growth” from FY
It is hoped and intended that FY will support Envirodoor in both its strategic acquisitions in 2014 AND its organic growth plans

Mark de-Villamar Roberts
Managing Director mark.roberts@envirodoor.com
+44 (0) 1482 659 375
Envirodoor Ltd
Viking Close, Willerby, Hull
East Yorkshire
HU10 6BS, UK
Telephone: +44 (0) 1482 659 375 www.envirodoor.com

Finance Yorkshire
• Work collaboratively with the Humber Local
Enterprise Partnership and Local Authorities
• 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.financeyorkshire.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 Viking Fund Managers 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 Conduct Authority.
www.finance-yorkshire.com