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Finance Yorkshire Welcome. www.finance-yorkshire.com. Finance Yorkshire Ian Kelly - Director. www.finance-yorkshire.com. Finance Yorkshire Why are we here this morning?. Strengthening relationships with stakeholders, partners, intermediaries and clients

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Finance yorkshire welcome

Finance YorkshireWelcome

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireIan Kelly - Director

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireWhy are we here this morning?

  • 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 welcome

Finance YorkshireAgenda

  • 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 welcome

Finance YorkshireAlex McWhirter - CEO

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireWhat we are…

£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 welcome

Finance YorkshireOur business approach…

  • 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 welcome

Finance YorkshireOur investment performance so far...

  • 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 welcome

Finance YorkshireInvestment Profile

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireInvestment impact...

  • 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 welcome

Finance YorkshireInvestment performance by location...

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireInvestment performance by location...

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireInvestment performance by sector...

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireInvestment criteria…

  • 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 welcome

Finance YorkshireThree portfolios

  • Seedcorn Finance

  • Business Loans

  • Equity Linked Finance

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireSeedcorn Finance

  • 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 welcome

Finance YorkshireCase Study – Carlton Manufacturing

  • 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 welcome

Finance YorkshireBusiness Loans

  • 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 welcome

Finance YorkshireCase Study – John Moore Security Ltd

  • 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 welcome

Finance YorkshireEquity Linked Finance

  • 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 welcome

Finance Yorkshire Case study - Envirodoor

  • 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 welcome

Finance YorkshirePortfolio performance to date..

  • 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 welcome

Finance YorkshireOur Investment approach

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 welcome

Finance Yorkshire

James Trowsdale

Humber, Local Enterprise Partnership

www.finance-yorkshire.com


Finance yorkshire welcome

Finance Yorkshire Roadshow

21 March 2013

Mercure Grange Park Hotel, Willerby


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • About the Humber LEP

    • Key activities:

    • Economic leadership

    • Links with Government

    • Marketing the Humber and developing the Humber ‘offer’

    • Encouraging collaboration


Finance yorkshire welcome

  • 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.”


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • Business Loan Fund

    • £8m+ allocated to the Humber through the growing places fund

    • Loan funding for stalled capital projects

    • 2nd Round of applications closed in November, currently completing due diligence and contracting with successful projects


Finance yorkshire welcome

  • 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)


Finance yorkshire welcome

  • 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)


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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 – [email protected]

      Monthly deadline for Expressions of Interest = 12th April


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • 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


Finance yorkshire welcome

  • Key appraisal tests

    • Jobs created

      • Grant must createsustainable 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?


Finance yorkshire welcome

  • How to apply

  • Expression of Interest Form to be submitted online by 12th 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


Finance yorkshire welcome

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


Finance yorkshire welcome

  • 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 – [email protected]

      Deadline for Expressions of Interest = 12th April 2013


Finance yorkshire welcome

Finance Yorkshire

Seedcorn Fund Testimonial

Ed French, Tangentix

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireBusiness Loans Testimonial

Tom Sharp, The Beautiful Meme

www.finance-yorkshire.com


Finance yorkshire welcome

Finance YorkshireEquity Linked Finance Testimonial

Turbine EfficiencyAlan Hawkins & Brian Geldart

www.finance-yorkshire.com


Finance yorkshire roadshow presentation

Finance Yorkshire Roadshow Presentation

Turbine Efficiency Group

Presented By:

Alan Hawkins - CEO

Brian Geldart – Group Financial Director

Thursday 21st March 2013


Finance yorkshire welcome

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)


Finance yorkshire welcome

Power Services

Our Location

Turbine

Efficiency


Finance yorkshire welcome

Power Services

Turbine

Efficiency

Our Market Place


Finance yorkshire welcome

Grown steadily over past 10 years

Established provider to blue chip companies since 2001

Reliability, Economy and Efficiency in partnership


Finance yorkshire welcome

  • 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.


Finance yorkshire welcome

  • New company formed as part of new investment

  • Based in Doncaster

  • Enabled us to leverage our expertise

Training

Equipment Relocation


So why finance yorkshire

So why Finance Yorkshire?

  • Summer 0f 2011 business review

  • We had outgrown our service facility in Lincoln

  • Were split over 2 sites and unable to develop.


So why finance yorkshire1

So why Finance Yorkshire?

  • Orders and opportunities growing fast

  • We had an ambitious growth strategy.

  • We were stuck


How did we know about them

How did we know about them?

  • By recommendation .

  • Contacted by Finance Yorkshire

  • Timing was right

  • Finance from other sources not ambitious enough


How did the process work

How did the process work?

  • Application with support of FY adviser.

  • Due Diligence - Financial, Commercial & Legal

  • Intense 4 month period.


How did the process work1

How did the process work?

  • 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.


Outcomes

Outcomes

  • Successful application


Outcomes1

Outcomes

  • The money arrived - Immediately!

  • Ownership balance changed.

  • Current engagement is at Board level via Ian Brown

  • Involvement without stifling us.


Outcomes for the business

Outcomes for the business

  • 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.


Outcomes for the business1

Outcomes for the business

  • 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.


Biggest challenges

Biggest challenges?

  • Your Capability

  • Your Capacity

  • Your Time

  • But….

  • You get good Communication

  • Good support

  • Especially on the Financial side.


To conclude

To Conclude

  • 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 welcome

Finance YorkshireFuture work…

  • 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 welcome

Finance YorkshireMaking an application

  • 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 welcome

Finance YorkshireQ & A

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


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