Hull Roadshow Presentation 2014

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

Finance Yorkshire
Investment impact...
• 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
Investment performance by location...
The Humber
LEP Area - Activity

Enquiries

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

11%

7

8%

£

15

0%

North Lincolnshire

50

12%

6

7%

£

80

2%

Total

430

100%

89

100%

£

4,075

www.finance-yorkshire.com

100%


Finance Yorkshire
Investment performance break down...

Location

Amount Investments
Invested

(%)
£000

Amount
Invested
£000

Seedcorn
The Humber

£

450

11%

Amount Investments
Investments Invested
(%)
(%)
£000

Business Loans
£

2,175

53%

Equity

£ 1,450

36%

www.finance-yorkshire.com


Finance Yorkshire
Investment performance by sector...
Sector Analysis – All Funds
Application
Process (%)
Business Services
13%
Engineering / Industrial products / Materials 25%
Financial Services
2%
Healthcare / Pharma / Bioscience
12%
ICT / Software / Telecoms / Media
19%
Leisure / Hospitality
1%
Renewables / Energy / Cleantech
6%
Consumer / Food & Drink
7%
Other
16%
Sector

Investments
(%)
17%
27%
2%
5%
12%
2%
7%
10%
18%

www.finance-yorkshire.com


Finance Yorkshire
Investment 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
Three portfolios

• Seedcorn Finance
• Business Loans
• Equity Linked Finance

Up to £780k
£15k - £250k
£100k - £2m

www.finance-yorkshire.com


Finance Yorkshire
Seedcorn Finance
• 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
Seedcorn Finance
Where investment made a difference
• 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
Business Loans
• 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
Business Loans
Where investment made a difference
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
Equity Linked Finance
• 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
Equity Linked Finance
Where investment made a difference

 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
Portfolio performance to date..
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
Our 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

James Trowsdale

Humber
Local Enterprise Partnership

www.finance-yorkshire.com