Finance Yorkshire Welcome www.finance-yorkshire.com Finance Yorkshire Jennie Adams - Director www.finance-yorkshire.com Finance Yorkshire Why 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 Agenda • 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 Alex McWhirter – Chief Executive www.finance-yorkshire.com Finance Yorkshire What we are… £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 Our 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 Our investment performance so far • 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 Investment Profile www.finance-yorkshire.com Finance Yorkshire Investment Profile www.finance-yorkshire.com 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 October 2012 2012 Audited Accounts: Turnover: £2,590,000 Net Loss: (£30,000) • Significant investment at end 2012 and beginning of 2013 made in resource and marketing (resource and strategy) • 2013 Audited Accounts: Turnover: £3,800,000 Net Profit: £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 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 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 Future work… • 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 Making an application • 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 Q&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 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 ... Good news stories since November… • • • • • • • • Siemens Able Marine Energy Park Hull – Selby line electrification Hull: City of Culture 2017 Expansion of Assisted Areas (to cover Scunthorpe) Enterprise... Number Applications Investments Amount (£000) % of total % of total Number % of total Kingston upon Hull 156 36% 37 42% £ 1,405 34% East Riding 177 41% 39 44% £ 2,575 63% North East Lincolnshire 47... £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