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Finance Yorkshire Welcome

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

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  1. Finance YorkshireWelcome www.finance-yorkshire.com

  2. Finance YorkshireIan Kelly - Director www.finance-yorkshire.com

  3. 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

  4. 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

  5. Finance YorkshireAlex McWhirter - CEO www.finance-yorkshire.com

  6. 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

  7. 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

  8. 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

  9. Finance YorkshireInvestment Profile www.finance-yorkshire.com

  10. 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

  11. Finance YorkshireInvestment performance by location... www.finance-yorkshire.com

  12. Finance YorkshireInvestment performance by location... www.finance-yorkshire.com

  13. Finance YorkshireInvestment performance by sector... www.finance-yorkshire.com

  14. 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

  15. Finance YorkshireThree portfolios • Seedcorn Finance • Business Loans • Equity Linked Finance www.finance-yorkshire.com

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

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

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

  26. 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

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

  28. 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.”

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. 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)

  35. 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)

  36. 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

  37. 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

  38. 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 = 12th April

  39. 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

  40. 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

  41. 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

  42. 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

  43. 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

  44. 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?

  45. 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

  46. 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

  47. 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 = 12th April 2013

  48. Finance Yorkshire Seedcorn Fund Testimonial Ed French, Tangentix www.finance-yorkshire.com

  49. Finance YorkshireBusiness Loans Testimonial Tom Sharp, The Beautiful Meme www.finance-yorkshire.com

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