News: Finance Yorkshire's new funds

Regional funding body, Finance Yorkshire has appointed The FSE Group to manage two business loan investment streams.

The appointment follows Finance Yorkshire’s announcement of a new fund to support business growth across the region. Investments are available to eligible SMEs across Yorkshire and the Humber with ambitions to expand, create jobs and improve productivity.

The new fund has been structured to provide SMEs with a range of support through Seedcorn and Growth Fund (primarily equity) investments, along with large and small Business Loans.

The FSE Group will manage the two Business Loan funds. It was announced in September that Anticus Partners will manage the Seedcorn and Growth streams.

A ten-year contract, both funds will invest in SME companies in the Yorkshire and Humber region. The Seedcorn Fund will support fast growth start-up businesses, whilst the Growth Fund will focus upon existing businesses, with a particular emphasis upon Management Buyouts and Replacement Capital.

Finance Yorkshire’s new fund is expected to invest more than £50m over the next five years as it continues to realise its investment portfolio from its earlier fund.

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The new fund has been created from the combined legacies successfully created by Finance Yorkshire and the former South Yorkshire Investment Fund. Finance Yorkshire’s JEREMIE and Extension Funds invested £113m in more than 500 companies in the region.

Finance Yorkshire Chief Executive, Alex McWhirter said: “We’re looking forward to working with The FSE Group to provide much-needed investment to companies with great potential but who are unable to access finance from traditional and other alternative sources.

“The FSE Group emerged as the best candidate following a competitive tendering process and they have wide-ranging experience of delivering investments that help SMEs to reach their maximum potential.”

The FSE Group CEO, Paul Marston added: “We are delighted to be appointed fund manager for these two loan funds and join Anticus Partners in providing alternative finance options to high growth SMEs across Yorkshire and the Humber. The FSE Group has been funding and supporting growth SMEs for 20 years and we look forward to building on Finance Yorkshire’s previous success.”

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News: Finance Yorkshire creating legacy fund

Regional funding body, Finance Yorkshire has fully repaid its debt finance meaning that future returns from investments will now be used to create a legacy fund for future investment into the region.

The Finance Yorkshire fund achieved full investment of £113m last year. It was originally developed as a European JEREMIE initiative, capitalised by grants from the UK Government, European Regional Development Fund and debt finance from the European Investment Bank (EIB). The successful investment fund was extended as the Sheffield city region waited on the £400m Northern Powerhouse Investment Fund (NPIF).

New figures reveal that investments by Finance Yorkshire have created or safeguarded more than 16,000 jobs in the region. Since its launch seven years ago, the SME funder has invested in more than 500 SMEs across Yorkshire and the Humber.

The figures show that Finance Yorkshire's investments have enabled those companies to increase their turnover by a total of £474m and attract a further £362m from other private sector sources.

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James Newman, chairman of Finance Yorkshire, said: "These figures demonstrate that Finance Yorkshire has more than delivered on its original brief to support SMEs and create jobs and economic growth.

"I am immensely proud of our team that has made this happen over the past seven years. Through their hard work and diligence, we have made hundreds of investments that have led to more employment and boosted the economic future of the region."

Alex McWhirter, chief executive of Finance Yorkshire, added: "These economic output figures demonstrate the success of the Fund and its performance in surpassing all expectations when we launched it in 2010.

"At that time, we started with a £90m fund and over the course of our investment period, because of our success, we were able to secure an additional 30% funding to invest for the benefit of the region's SMEs."

Earlier this year, Rotherham-based Specialised Laser Products (SLP) secured a £75,000 business loan from Finance Yorkshire as part of a funding package which has enabled the company to purchase the premises it had been leasing. Buying its premises on edge of the town centre has helped to secure the future of the business which is aiming to boost turnover.

Finance Yorkshire is now exploring future investment opportunities to utilise its legacy fund. McWhirter added: "There is still considerable unmet demand from SMEs for investment support to enable their businesses to grow and prosper. We are keen to look at what investment opportunities there are available to continue to facilitate the success of companies across Yorkshire and the Humber."

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News: Specialised Laser Products focus on growth

Rotherham-based Specialised Laser Products (SLP) is targeting £4.5m turnover this year after investing in state of the art machinery and buying its premises on the edge of the town centre.

The company provides laser cutting services for a wide range of industries and has more than 500 clients nationwide. Working across a wide range of sectors, the firm uses ultra-precise methods to laser cut steel and aluminium sheet metal with the finest degree of accuracy.

A £75,000 business loan from Finance Yorkshire is part of a funding package which has enabled the company to purchase the premises it had been leasing.

Established more than 20 years ago to initially support the machine knife industry the firm now employs 29 people at its Canklow Road premises where investment has been made in the latest laser cutting machines.

Duncan Proctor, managing director at Specialised Laser Products (pictured, left), said: "We have been at Ford Park for the last 16 years and as we have expanded we have taken on further units and now occupy the entire site. Buying our existing premises helps secure the future of the business and keeps us at the same location which is ideal for providing our services to customers nationwide.

"The company's customer sectors include engineering, rail, construction and machine knives where it offers a range of materials including mild steel, stainless, aluminium, spring steel, tool steels, copper and brass.

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Duncan added: "We are always looking to improve our systems for the benefit of our customers. Our successful growth has been achieved through our commitment to delivering precision and quality products at all times."

Grahame Lunt, investment manager at Finance Yorkshire (pictured, right), added: "Specialised Laser Products is a successful and profitable business which constantly strives to deliver the very best service and products for its customers. Our investment has helped the company secure its premises and ensured the business and jobs are retained in Rotherham."

Finance Yorkshire's successful investment fund has been extended as the Sheffield city region waits on the £400m Northern Powerhouse Investment Fund (NPIF). Funding totalling £5m has been allocated to Finance Yorkshire by the Leeds City Region LEP and Sheffield City Region LEP, supported by their respective combined authorities. This follows the full investment of Finance Yorkshire's £113m fund in June last year.

Backed by investment from the European Regional Development Fund (ERDF), Finance Yorkshire provides seedcorn, loan and equity linked investments to help a range of small and medium sized businesses to meet their funding requirements for growth and development.

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News: Finance Yorkshire extension secured

Finance Yorkshire's successful investment fund has been officially extended as the Sheffield city region waits on the £400m Northern Powerhouse Investment Fund (NPIF).

The Sheffield city region is set to be part of a large fund involving all Yorkshire and the Humber Local Enterprise Partnerships (LEPs), the North West and Tees Valley. It is hoped to bring together over £400m.

The fund builds on the work of initiatives backed by European money such as Finance Yorkshire - the regional funding body that has invested over £100m into companies in Yorkshire and Humber.

The NPIF is expected to launch substantively in January 2017, slightly later than originally envisaged, and includes £162m of European Structural Funds, agreed prior to the EU referendum.

The delays to the launch of the NPIF has led to an "investment gap" and funding totalling £5m has been allocated to Finance Yorkshire by the Leeds City Region LEP and Sheffield City Region LEP, supported by their respective combined authorities. This follows the full investment of Finance Yorkshire's £113m fund in June this year.

Finance Yorkshire is now looking for new investment opportunities in companies that require gap funding to realise their growth ambitions and employ more people.

Since its inception in 2010, Finance Yorkshire has invested in more than 470 companies, enabling those businesses to increase their turnover by a total of £452m and attract a further £286m from private sector sources. Finance Yorkshire investment has helped those SMEs to create and safeguard more than 13,400 jobs in the region.

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James Newman, chairman of Finance Yorkshire, said: "The full investment of our original fund was a fantastic achievement by everyone involved at Finance Yorkshire. The investments have enabled hundreds of SMEs across a wide range of industry sectors to expand their team, invest in equipment and open up new markets.

"I'm delighted that we have been able to secure additional funding to help even more SME's and further boost the economy of our region."

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, Sterecycle, RediRack, S3-ID, Xiang Trading Ltd, Labfacility and Purex. Whilst Redirack and Sterecycle have since gone into administration, S3-ID was acquired by Singapore listed CSE Global in a £7m deal, Approved Food has expanded into larger premises in Sheffield and Xeros went on to raise millions through floating on the London Stock Exchange.

Alex McWhirter, chief executive at Finance Yorkshire, said: "We know that many companies are in good shape but nonetheless find it difficult to access funding. Our investments play an important role in filling that funding gap.

"The full investment of our original fund was an exceptional achievement but we are mindful of the need to provide continued support for regional SMEs. I'm grateful to our partners in the Leeds and Sheffield City Region LEPs for working with us to secure this extension fund, which will be invested up until March 2017.

"We look forward to talking to regional businesses about their funding requirements and will continue to work closely with business advisors to highlight the investment opportunities available."

Sir Nigel Knowles, chairman of the Sheffield City Region LEP, added: "Setting up a business, increasing your company's assets and growing payroll are all times of stress for an SME. Creating pragmatic and straightforward investment opportunities that enable companies to thrive and grow is vital for the region. Finance Yorkshire will help ambitious businesses in Sheffield City Region to grow and flourish as we all work together to build a truly competitive centre of business excellence."

During the tendering for the NPIF, which also sees the Sheffield-based British Business Bank investing £50m of its own capital, Viking Fund Managers c/o Finance Yorkshire was one of the successful specialist fund managers – who will make the individual investments in smaller businesses.

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News: £400m Northern Powerhouse fund managers identified

European funding for the new £400m Northern Powerhouse Investment Fund (NPIF) looks to be safe but delays to its launch has led to an investment gap in the Sheffield city region.

The Sheffield city region is set to be part of a large fund involving all Yorkshire and the Humber Local Enterprise Partnerships (LEPs), the North West and Tees Valley. It is hoped to bring together over £400m.

The fund builds on the work of initiatives backed by European money such as Finance Yorkshire - the regional funding body that has invested £105m fund into companies in Yorkshire and Humber.

The NPIF is expected to launch substantively in January 2017, slightly later than originally envisaged, and includes £162m of European Structural Funds, agreed prior to the EU referendum.

Chancellor Philip Hammond recently confirmed that all structural and investment fund projects signed before the upcoming Autumn Statement will be fully funded, even when these projects continue beyond the UK's departure from the EU.

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The Sheffield-based British Business Bank will also be investing £50m of its own capital into the new fund which is hoped to be matched by an additional £50m from the European Investment Bank. In August, the British Business Bank said that it is working closely with Government departments and other stakeholders to reach agreement and sign-off before the Autumn Statement.

Tendering for the appointment of a number of specialist fund managers – who will make the individual investments in smaller businesses – has recently concluded. Contracts have been awarded to AXm VC Limited, Enterprise Ventures, Foresight Group, Maven Capital Partners and Viking Fund Managers c/o Finance Yorkshire.

The delays to the launch of the NPIF has led to an "investment gap" in the Sheffield city region. The existing JEREMIE fund, which provides debt and equity finance to small and medium-sized businesses (SMEs) no longer has capital to invest. JEREMIE stands for Joint European Resources for Micro to Medium Enterprises.

To bridge the gap, the SCR Combined Authority approved an offer to Finance Yorkshire (the "holding fund" for the JEREMIE) of a loan (on commercial terms) of £2.5m until December 31 2016 so that it can continue to support firms until the new fund is open for business. A number of South Yorkshire firms were being considered for funding by Finance Yorkshire.

Now changes to the offer have been sought that would enable Finance Yorkshire to invest alongside Leeds City Region on an equivalent basis. Changes would also allow for extensions or variations should an unexpected delay to NPIF occur.

Changing from a loan to a repayable grant, the combined authority is expecting a small positive return on the £2.5m and fund manager fees will not be paid in the event of nonperformance. Unspent money will be returned.

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News: Purex expansion backed by Finance Yorkshire

Purex International, a manufacturer of fume extraction systems, has expanded with the support of business loan from Finance Yorkshire.

Rothbiz featured the move earlier this year, when the £8m turnover firm expanded from its Manvers base and relocated to Thorne Park in Doncaster.

The firm manufacture systems that capture fumes at the source, preventing fumes escaping into the workplace, before filtering and recycling them meaning that fumes are not pumped into the outside environment. The systems are used in electronics factories and to remove all of the odours created by wide format inkjet printing equipment.

50% of Purex International products are sold to overseas customers. It also has a network of distributors across Europe.

Moving into a 18,680 sq ft unit, which it acquired on a freehold basis for an undisclosed sum, Purex said that the new purpose built headquarters will allow it to fulfil its current rapidly growing business and ambitious future expansion plans.

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The business was introduced to Finance Yorkshire by Barclays, which provided a commercial mortgage, and the regional funding body provided a business loan to support the move.

Finance Yorkshire has invested over £105m into companies in Yorkshire and Humber having secured extra support from the Regional Growth Fund (RGF). Originally a £90m fund, it operated three investment teams - Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

The relocation follows a management buyout in 2015, supported by Barclays, which saw Trefor Jones and Andy Easey acquire the company from Domino Printing Sciences.

Trefor Jones, managing director at Purex International (pictured, far left), said: "We were in rented accommodation but wanted to purchase our own building. This move gives us more stability for the longer term.

"Last year we opened a subsidiary in the US where we have been trading for many years . We have a good reputation in the market for the quality of our products and now we are able to offer an enhanced, local service. The US market is worth $220m so there is potential for growth."

Melanie Reynolds, portfolio executive at Finance Yorkshire (pictured, second left), added: "There is an exciting future ahead for Purex International as it looks to build on an already strong reputation for quality and service by building its US sales, developing new markets and investing in new products."

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News: £2.5m top up for Finance Yorkshire

Growing businesses across the Sheffield city region (SCR) will still be able to access finance even though the new £400m Northern Powerhouse Investment Fund (NPIF) won't be ready until 2017.

The city region is set to be part of the much larger fund involving all Yorkshire and the Humber Local Enterprise Partnerships (LEPs), the North West and Tees Valley. It is hoped to bring together over £400m, subject to meeting European funding requirements, and tendering for specialist fund managers, who will make the individual investments in smaller businesses, closed last week.

The fund builds on the work of initiatives backed by European money such as Finance Yorkshire - the regional funding body that has invested £105m fund into companies in Yorkshire and Humber.

Now the SCR Combined Authority is being asked to offer Finance Yorkshire a loan (on commercial terms) of £2.5m to bridge the investment gap until December 31 2016 so that it can continue to support firms until the new fund is open for business.

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Originally a £90m fund, Finance Yorkshire operated three investment teams - Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

Finance Yorkshire became the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England and in 2015 it secured funding from Round Six of the Government's Regional Growth Fund (RGF) and an extension to its investment period until June 2016.

A report to the combined authority states: "Arrangements for the Northern Powerhouse Investment Fund are progressing well. NPIF is on track to be launched in September 2016 and it is expected that fund managers will be investing significant sums from January 2017. This could, without SCR intervention, leave an investment gap between June 2016 and January 2017."

This gap could be detrimental to businesses hoping to secure funds and momentum could be lost. 18 South Yorkshire firms are currently being considered for funding by Finance Yorkshire.

The NPIF was announced in the Autumn Statement 2015. The British Business Bank will also be investing £50m of its own capital into the new fund which will be matched by an additional £50m from the European Investment Bank. LEPs, including Sheffield, are working with the British Business Bank and Department for Communities and Local Government to aggregate the European money they receive into a combined fund.

Bringing allocations together into larger funds will allow more resources to be targeted at businesses with growth potential across a wider area, with economies of scale meaning more money can be invested directly in smaller businesses.

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News: Rotherham-based AME Group set for expansion thanks to £20,000 business loan

A prototype manufacturer based in Rotherham that develops and tests products including kitchen gadgets and paintbrushes is growing its design team following a funding boost from Finance Yorkshire.

The innovative Dinnington company combines a team of creative designers and technical designers who work on new products and create high-specification prototypes using 3D printing technology for customers including Dyson, GlaxoSmithKline, Hornby, Morphy Richards and Unilever.

Former coal miner Ian Jones established the company in 1996 and it now employs 22 people and has a turnover of £1.5m. Its growth has been fed by demand for the rapid production of prototypes and replica models that can be exhibited at shows and tested before they enter mass production.

AME has recently secured a £20,000 business loan from Finance Yorkshire to enable the group to expand its team and improve marketing. The company put to use a £30,000 business loan from the regional funding body in 2013.

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Ian Jones, managing director of AME Group, said: "We have developed a niche as an engineering company that offers a fast turnaround and high quality. This has enabled us to build a strong base of long-term customers.

"As the economy has picked up, our design revenues have grown so we have hired two people into that team. While technology continues to evolve, design skills remain crucial to the process. Our strategy is for our design revenues to catch up with those of our prototyping division."

Melanie Reynolds, portfolio assistant at Finance Yorkshire, added: "AME Group has carved out a reputation for speed, quality and value for money which means it is trusted by an impressive portfolio of brands. The loan will help AME to enhance its already impressive design offering."

AME Group has worked closely with leading consumer product company, Proctor and Gamble, and has worked on more than 100 of its brands from designing the packaging of Pringles Crisps to developing the lid dispenser on Ariel detergent.

It has also developed children's toys, for example Scalextric cars and Hornby trains, as well as medical equipment and electronic beauty products.

Finance Yorkshire has invested over £105m into companies in Yorkshire and Humber having secured extra support from the Regional Growth Fund (RGF). Originally a £90m fund, it operated three investment teams - Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

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News: Finance Yorkshire hits £100m mark

Regional funding body, Finance Yorkshire has invested £100m fund into companies in Yorkshire and Humber having secured extra support from the Regional Growth Fund (RGF).

Originally a £90m fund, it operated three investment teams - Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

Finance Yorkshire is the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England and in 2015 it secured funding from Round Six of the Government's Regional Growth Fund (RGF) to invest in businesses across Yorkshire and the Humber.

Hitting the £100m milestone, the fund has made 792 investments in businesses, increasing overall turnover by £360m and creating and safeguarding more than 11,000 jobs.

James Newman, chairman of Finance Yorkshire, said: "The fund's investments have made a significant impact on SMEs involved in a wide range of manufacturing and service sectors, in all parts of Yorkshire and the Humber.

"Many companies have found it difficult to access funding via traditional routes making our role invaluable. SMEs are the bedrock of our regional economy, and we will continue to support them. Through our consistent support we have helped SMEs to improve competitiveness and encouraged wealth creation in the region."

More than £30m has been invested in the region's SME manufacturers with more than 200 separate investments in companies specialising in engineering, industrial products and materials. This represents 32% of Finance Yorkshire's total investments.

Alex McWhirter, chief executive of Finance Yorkshire, said: "Manufacturing has a long-established heritage across Yorkshire and Humber and our funding is helping to create sustainable growth for over 200 SMEs in the sector. The region's manufacturers are flying the flag throughout the UK and beyond, and we're passionate about helping them succeed and ensuring our rich manufacturing tradition continues to flourish."

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, Sterecycle, RediRack, S3-ID, Xiang Trading Ltd and Labfacility. Whilst Redirack and Sterecycle have since gone into administration, S3-ID was acquired by Singapore listed CSE Global in a £7m deal, Approved Food has expanded into larger premises in Sheffield and Xeros went on to raise millions through floating on the London Stock Exchange.

The Sheffield City Region (SCR) is set to be part of the Northern Powerhouse Investment Fund (NPIF) – a "fund of funds" involving all Yorkshire and the Humber Local Enterprise Partnerships (LEPs), the North West and Tees Valley. It is hoped to bring together over £400m, subject to meeting European funding requirements, and expects to appoint a number of specialist fund managers who will make the individual investments in smaller businesses from Summer 2016.

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News: Labfacility sensing further growth

Rotherham-based Labfacility is modernising its production facilities to capitalise on demand from overseas, following investment from Finance Yorkshire.

The Dinnington firm is the UK's largest manufacturer of temperature sensors, making sensors for industries including petrochemicals, pharmaceuticals, food, glass and aerospace.

Finance Yorkshire was the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England. The £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

Securing further government and european funding this year, Finance Yorkshire provide loans ranging from £15k to £50k for early stage businesses, £15k to £75k for established businesses and from £15k to £250k for established and profitable businesses.

Labfacility has secured a £50,000 business loan, which will enable the company to replace old tooling and welding equipment. It will also assist with the recruitment of staff to meet demand.

The firm previously secured loans from Finance Yorkshire and Finance For Enterprise (then called Donbac) in 2010. It now employs 70 staff with a turnover of just under £4m.

Labfacility exports 70% of its products with customers in more than 80 countries, including Europe, the US and China. Its two largest customers are global distributors RS Components and Premier Farnell.

Martin Riddett, managing director at Labfacility, said: "We are conscious that our international counterparts are investing so we must keep pace. This latest investment will enable us to increase our welding capacity.

"We are also investing in staff and have recently taken on three apprentices.

"The support we have received has been hugely beneficial. Finance Yorkshire understands our business, they are able to move quickly and always look at the longer-term picture."

Labfacility is also redesigning its e-commerce site, which offers same-day despatch and is responsible for an increasing share of sales.

Melanie Reynolds, portfolio executive at Finance Yorkshire, said: "We are impressed by the expansion of Labfacilty, which has increased sales in the UK and abroad and is creating jobs in the South Yorkshire area.

"We look forward to helping Martin and his team to expand profitably and increase their product range."

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News: Finance Yorkshire looking for the next Xeros

Early stage investment from Finance Yorkshire is helping to develop and nurture some of the region's most innovative and successful companies - including Rotherham-based Xeros.

Finance Yorkshire was the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England. The £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

The Seedcorn Fund provides investment of up to £780,000 in businesses which are developing new technology-based solutions which have the potential to disrupt their chosen markets.

Two companies that received Seedcorn funding from Finance Yorkshire hit the headlines after listing on the Alternative Investment Market (AIM) and growing their market values considerably.

Xeros Technology Group plc is based on the Advanced Manufacturing Park (AMP) in Rotherham and is behind a new bead-based cleaning technology which results in significant savings on water, energy and detergent while at the same time delivering improved cleaning results.

Finance Yorkshire made three investments in Xeros totalling £1.45m. The company, led by CEO Bill Westwater, floated with a market capitalisation of £80m and has more than doubled its share price to 260p.

Xeros had just three employees in 2009, but now has more than 70 staff across the UK, US and China. It recently announced a deal with German speciality chemicals business LANXESS, which will see its technology applied to the leather processing industry.

Finance Yorkshire invested £520,000 in York-based OptiBiotix Health plc which listed on AIM when its market value was £6m, and in just 12 months that has risen to over £27m.

Julian Viggars, investment director of the Seedcorn Fund (pictured), said: "Our portfolio includes some of the most exciting science and technology based businesses in the UK. Investing in these businesses requires specialist knowledge and a long term approach as value is not created overnight.

"We have nurtured Xeros and OptiBiotix from the very start and continue to support them. A listing was once seen as providing an exit for venture capitalists but we are successfully using the public markets to provide businesses with additional investment capital to continue their long term growth.

"As Xeros and OptiBiotix have experienced, a listing is also very effective in raising a company's profile to both a national and global audience and to attract the very best management talent.

"Xeros is the perfect example of the type of company that we seek to back – innovative, early stage businesses that will become high-growth companies of the future. The region has a strong tradition in engineering and manufacturing, with a strong skills base, and we expect more opportunities to emerge."

Finance Yorkshire's investments to date have created and safeguarded 10,196 jobs across Yorkshire and the Humber, increased turnover by £309m and generated private sector leverage of £179m.

In February the fund announced that it had secure funding from Round Six of the government's Regional Growth Fund (RGF) to invest in businesses across Yorkshire and the Humber. In April it announced that it had secured further support from the European Regional Development Fund (ERDF).

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News: Plans for northern JEREMIE

Work is continuing to create a multimillion pound pot of funding to provide equity and loan finance to start-ups, growing early stage companies and larger companies with ambitions for strong growth.

Chancellor, George Osborne, believes that small business across the north of England could benefit from funds of over £400m thanks to a new wave of European funding. The Government is working with Local Enterprise Partnerships (LEPs) and local authorities to secure fresh funding for small businesses in the north from EU Regional Funds, which would be made available for northern SMEs later this year.

The plans would form the next round of JEREMIE (Joint European Resources for Micro to Medium Enterprises) funding for the Northern Powerhouse.

Finance Yorkshire was the first European JEREMIE initiative to become fully invested in England.

The initial £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward. Around £28m was invested in South Yorkshire companies.

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Access to finance is a key pillar of both the Sheffield City Regions LEP's Strategic Economic Pan and as part of the city region's Growth Hub, a "Centre of Expertise" will become the gateway to a range of finance and investment products, improving coordination and helping businesses find the package of loans and grants they need to be able to grow.

The Sheffield City Region LEP has been keen to boost access to finance through the development of a loan and equity funding using the JEREMIE model and a Holding Fund, and has been working with other LEPs to explore a future JEREMIE initiative and integrating it with its own £50m RGF Business Growth Fund.

Chancellor of the Exchequer George Osborne said: "Small business are the lifeblood of the Northern Powerhouse and this funding has the potential to make an enormous difference to hundreds of SMEs right across the north.

"From supporting thousands of northern companies through increasing the Annual Investment Allowance and giving businesses an extra £1,000 with an increase in the Employment Allowance, my Budget last week backed businesses across the north and this funding has the potential to do even more."

The Sheffield City Region LEP has put together a plan for making the best of use of EU structural funds. The city region can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme." In the previous settlement, South Yorkshire received €410m. From 2014-2020 this will be cut to €180m.

The LEP will only have an "advisory role" over how the European funding is spent. The final decisions will be made in Whitehall as the Government considers the role of Intermediary Body as being too risky in the context of managing European funds and the European Commission has not accepted that LEPs are an appropriate body to take decisions.

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News: Finance Yorkshire continues to invest

Regional funding body, Finance Yorkshire, has secured further support from the European Regional Development Fund (ERDF) and match funders.

Finance Yorkshire was the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England.

The initial £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward. Around £28m was invested in South Yorkshire companies.

In February the fund announced that it had secure funding from Round Six of the government's Regional Growth Fund (RGF) to invest in businesses across Yorkshire and the Humber.

Alex McWhirter, chief executive at Finance Yorkshire (pictured), said: "Finance Yorkshire reached a milestone when it invested £90m at the end of 2014. New investment capital means that it is business as usual for Finance Yorkshire – we will continue to invest in SMEs and build on our success to date in helping to create jobs and facilitate sustainable growth across the region.

"The economic impact of our investments has been significant and we look forward to receiving enquiries and continuing our work with intermediaries to highlight the investment opportunities available and the huge value our fund brings to businesses seeking access to finance."

The Sheffield City Region Local Enterprise Partnership (LEP) has been keen to boost access to finance through the development of a loan and equity funding using the JEREMIE model and a Holding Fund, and has been working with other LEPs to explore a future JEREMIE initiative and integrating it with its own £50m RGF Business Growth Fund.

James Newman is chairman of Finance Yorkshire and is also chairman of the Sheffield City Region LEP. He said: "Finance Yorkshire has done an outstanding job in supporting businesses to invest, grow and create jobs. Access to finance remains one of the biggest challenges for SMEs and Finance Yorkshire's commitment to continued investment is a real boost to the regional economy."

To date, Finance Yorkshire has made 694 investments in SMEs across the region, creating and safeguarding 9,240 jobs and increasing overall turnover by £265m.

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, Sterecycle, RediRack, S3-ID, Xiang Trading Ltd and Labfacility. Whilst Redirack and Sterecycle have since gone into administration, S3-ID was acquired by Singapore listed CSE Global in a £7m deal, Approved Food has expanded into larger premises in Sheffield and Xeros went on to raise millions through floating on the London Stock Exchange.

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News: Apprentices jump start careers at IBCS

Rotherham-based Industrial Battery and Charger Services Limited (IBCS), one of the UK's largest independent suppliers of forklift truck batteries and chargers, is growing with apprenticeships.

Funding from HSBC and a £120,000 business loan from Finance Yorkshire enabled the company to move from its original base in Darnall, Sheffield, to premises at Hellaby in 2012. The business has since moved again – to premises twice the size at the same location – to meet the growth in customer demand. Turnover has increased from £2.6m in 2012 to more than £4m in 2014.

IBCS operates an apprenticeship scheme which has seen two apprentices already qualify as electrical engineers while a third is six months into his apprenticeship at the company. The scheme is run in conjunction with Rotherham College.

Jonathan Jones, managing director at IBCS (pictured, right), said: "We see apprentices very much as the future of our business – once they are qualified, they have a trade and stay with us while we continue to invest in their training and development. Having an apprenticeship scheme has been very positive for us."

Dylan Bartholomew is the latest IBCS apprentice and has already completed a Level 2 Electrical Engineering course.

Dylan, 18, from Maltby (pictured, left), said: "This is my first job and I'm enjoying it very much. I'm learning a lot while at the same time going to college where I do my course in two-week blocks which works well alongside being at IBCS. Doing an apprenticeship is definitely the right route for me."

Alex McWhirter, chief executive at Finance Yorkshire, added: "Our investments help companies to grow and create job opportunities which enables them to invest in people – including apprentices – who acquire invaluable skills which allow Yorkshire and the Humber to become an even stronger economy."

The eighth annual National Apprenticeship Week takes place from March 9-13 2015, with hundreds of events expected to take place across England.

The week, which is coordinated by the National Apprenticeship Service, is designed to celebrate apprenticeships and the positive impact they have on individuals, businesses and the economy.

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News: Finance Yorkshire boosted by RGF

Regional funding body, Finance Yorkshire has secured a grant from Round 6 of the Regional Growth Fund (RGF) to invest in businesses across Yorkshire and the Humber.

Finance Yorkshire was the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England.

The initial £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward. Around £28m was invested in South Yorkshire companies.

The RGF is the government's main source of funding for economic development and regeneration and supports private sector investment and job creation. Since its launch in 2010 it has invested £2.85 billion to help local businesses grow and take on more staff across England.

Alex McWhirter, chief executive of Finance Yorkshire, said: "This is excellent news and a tremendous boost for Yorkshire and the Humber. The grant will allow Finance Yorkshire to continue its vital investment work in providing gap finance to companies with viable and achievable business plans, allowing them to grow and expand and create jobs in the region.

"Our investments have already given businesses a timely boost which has led to substantial private sector investment and more employment opportunities being created. The RGF grant will further increase that effect and with growth firmly back on the business agenda, the economic impact of the new investment available should not be underestimated."

James Newman, chairman of Finance Yorkshire and chairman of the Sheffield City Region Local Enterprise Partnership, added: "Finance Yorkshire"s investments to date have had a huge impact on the regional economy, enabling businesses to grow, create jobs and wealth.

"The RGF grant provides the opportunity for Finance Yorkshire to build on its track record and further invest in companies right across the region, supporting them in their ambitions to succeed and grow."

Access to Finance was a key theme of the recent LEP Business Conference where Julie Kenny, chair and chief executive of growing Rotherham business, Pyronix Limited and LEP board member, explained the evidence of market failure and the importance of the issue to the city region's Growth Hub.

A "Centre of Expertise" will become the gateway to a range of finance and investment products, improving coordination and helping businesses find the package of loans and grants they need to be able to grow.

The LEP is also working to ensure that the right products are in place, working with other LEPs to explore a future JEREMIE initiative and integrating its own £50m RGF Business Growth Fund.

Funding for commercial property and infrastructure comes in the form of a £23m Joint European Support for Sustainable Investment in City Areas (JESSICA) fund - a so called "evergreen fund" where a return on the initial investments is expected, which will then be recycled into further projects over the next ten years.

One problem is the issue of the proposed use of European funding for such business support and finance packages as the next round of EU strutural funds is unlikely to be in place before the current round ends.

Finance Yorkshire website
Sheffield City Region LEP website

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News: Approved Food on Dragons' Den

Approved Food, a Sheffield firm that has expanded four times in six years, failed to secure investment on BBC's Dragons' Den but vowed: "We'll get 'em next time."

In an experience they described as "horrendous," "painful," "excruciating," and "a bit traumatic," directors Dan Cluderay and Andy Needham secured the chance of three minutes to pitch their business ideas to five multi-millionaires willing to invest their own cash. The episode was filmed in May when the firm was still based at the North Anston Trading Estate in Dinnington, Rotherham.

Cluderay started the business six years ago as a side-line to his small market stall, operating from the garage and based in his back bedroom. The online service offers deals that no supermarket can compete with by selling over 1,000 long dated, short dated or out of date "best before" products from many well-loved brands. It now has 50 staff helping thousands of customers save up to 70% off their food bills.

The pitch, which aired last night, saw the directors ask for a £150,000 investment in return for a 10% stake in the business. An impromptu market trader pitch from Dan got Dragon Peter Jones interested, as did discussion over the unique target market of savvy shoppers. Fellow Dragon, Duncan Bannatyne was interested in investing but had question marks over the small profit margins and value of the business. Deborah Meaden talked about the directors taking risks and the indebtedness in the business.

Recognising the passion for the business and the value of reducing food waste, the Dragons were unanimous that the pair "had got something," but in the end no offer was forthcoming. Peter Jones left the door open for investing further down the line.

Speaking immediately after leaving the Den, Dan Cluderay (pictured, left), said: "It's not the right time for them but I bet we can get them in the future!"

Since moving to Dinnington in 2010, the company grew quickly. In 2012 UK Steel Enterprise Ltd and Finance Yorkshire put together an undisclosed finance package to enable Approved Food to invest further to underpin the company's rapid growth. In October, after the visit to the Den, Approved Food, expanded into a 60,000 sq ft warehouse on Parkway Close just off The Parkway in Sheffield.

The company delivered over 110,000 orders last year with a turnover in excess of £4m.

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News: Loan boosts Rotherham battery business

Industrial Battery & Charger Services Ltd (IBCS), one of the UK's largest independent suppliers of forklift truck batteries and chargers, is on the charge thanks to continued backing from Finance Yorkshire.

IBCS supplies batteries, chargers and service to the entire distribution chain, from original equipment manufacturers through forklift truck dealers to the end users.

Funding from HSBC and a £120,000 business loan from Finance Yorkshire enabled the company to move from its original base in Darnall, Sheffield, to premises at Hellaby in 2012. The business has since moved again – to premises twice the size at the same location – to meet the growth in customer demand.

Jonathan Jones bought IBCS with Glynn Woon in 2001 and together with sales director Paul Hewson they employ more than 20 staff. Turnover has grown from £2.6m in 2012 to more than £4m in 2014.

Jonathan Jines, managing director at IBCS, said: "The investment from Finance Yorkshire was crucial to our first move and then giving us the springboard to move again. We're 40% ahead of where we were last year and we are planning for strong growth in the next 12 to 18 months through new and existing customers."

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IBCS has seen significant growth in the hire of its forklift truck batteries and chargers where there is demand from companies moving large amounts of stock, particularly in peak seasons. IBCS is also investing in training and development.

Jones added: "We are bringing apprentices through the business as well as investing in the development of our engineers. We have got an excellent group of people and their customer service, the quality of our product and our modern warehouse allows us to operate more efficiently and achieve growth."

Melanie Reynolds, portfolio executive at Finance Yorkshire, said: "IBCS is a great example of a company that has significantly grown as a result of investment from Finance Yorkshire. It is a well-established company which has shown consistent growth and profitability and has the ability to further cement its leading position in the UK market."

Finance Yorkshire is the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England. Its £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

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News: Finance Yorkshire invests full £90m

Regional funding body, Finance Yorkshire has fully invested its £90m fund into companies in Yorkshire and Humber and the Local Enterprise Partnership (LEP) is hoping to established a similar vehicle to continue to provide access to finance in the Sheffield city region.

The £90m fund had three investment teams, Seedcorn Finance, Business Loans and Equity Linked Investments. It secured £45m from the European Investment Bank, together with £30m investment from the European Regional Development Fund (ERDF) and £15m from the Government via Yorkshire Forward.

Finance Yorkshire is the first European JEREMIE (Joint European Resources for Micro to medium Enterprise) initiative to become fully invested in England. The fund has made 694 investments in businesses across Yorkshire and Humber, creating and safeguarding 8,716 jobs and increasing overall turnover in the region by £223m up to this point in time.

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, Sterecycle, RediRack, S3-ID, Xiang Trading Ltd and Labfacility. Whilst Redirack and Sterecycle have since gone into administration, S3-ID was acquired by Singapore listed CSE Global in a £7m deal, Approved Food has expanded into larger premises in Sheffield and Xeros went on to raise millions through floating on the London Stock Exchange.

Alex McWhirter, chief executive of Finance Yorkshire, said: "I am delighted that we are the first JEREMIE fund to become fully invested in England. Despite operating in a challenging economic climate, we have exceeded our performance targets. It’s a success story of which Yorkshire and Humber can be proud.

"Many SMEs across the region have found it difficult to access finance via the traditional routes over recent years. We have been able to provide investment to fill this finance gap for many businesses, enabling them to expand and create jobs in the region.

"The Fund will now be managed through the next five years during which time it is anticipated that a significant legacy fund can be created for the region for investment back into more businesses in Yorkshire and the Humber.

"Finance Yorkshire is working with stakeholders to secure further funding to ensure there is continuity to business investment in the region during 2015 and we expect to make a further announcement on this very soon."

In September the Sheffield City Region LEP board agreed to pursue the development of a loan and equity funding using the JEREMIE model and a Holding Fund, with recommendations for fund managers to be made by February 2015.

Recommended reading: Expanding Digital Access in South Yorkshire and Micro-Investment Strategies

James Newman, chairman of Finance Yorkshire is also chairman of the Sheffield City Region LEP. He said: "This is a significant milestone for everyone associated with the fund. Finance Yorkshire's investments have given businesses a timely boost that has led to other private sector direct investment and more employment opportunities being created. With growth firmly back on the business agenda, the economic impact of this fund cannot be underestimated.

"It is, therefore, vital that a second JEREMIE fund is created in 2015 so that all the good work done by Finance Yorkshire is not lost and it can continue to support businesses in Yorkshire and Humber. I am hoping that all four of the Yorkshire and Humber LEPs will support this important initiative so we can all build on the excellent performance so far for the benefit of the region's economy."

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News: Finance Yorkshire continues to support SMEs

More than £68m has been invested in SMEs by regional funding body Finance Yorkshire, new figures reveal.

Since being launched in August 2010, the amount invested to date equates to a total of 545 investments in small and medium-sized enterprises operating across Yorkshire, Humber, North and North East Lincolnshire.

Finance Yorkshire has attracted £30m investment from the European Regional Development Fund (ERDF), £15m from Yorkshire Forward's Single Programme, and £45m match funding from the European Investment Bank. It provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help SMEs meet their funding requirements for growth and development.

The focus is now on working with its partners – including the region's Local Enterprise Partnerships – to support the region's SMEs and their growth plans. The chairman of the Sheffield City Region Local Enterprise Partnership, James Newman is also chairman of Finance Yorkshire.

The new figures show Finance Yorkshire's investments have:

- created 2,782 jobs

- safeguarded 3,826 jobs

- created 32 new businesses and helped a further 326

- generated £84m in increased turnover

- leveraged £109m from the private sector

Alex McWhirter, chief executive of Finance Yorkshire, said: "These figures are a strong demonstration of the impact and value that we bring to SMEs across the Yorkshire region. In what has been a difficult couple of years, our investments have helped companies grow and maintain their competitive edge, increasing turnover, creating much-needed jobs and fuelling the regional economy.

"I'm confident our investments across a range of sectors will continue in the coming months, particularly with the upturn in the economy and a strong desire among SMEs to seek finance for growth."

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, Sterecycle, RediRack, S3-ID, Xiang Trading Ltd and Labfacility. Whilst Redirack and Sterecycle have since gone into administration, S3-ID was acquired by Singapore listed CSE Global in a £7m deal and Xeros has gone on to raise millions through floating on the London Stock Exchange.

A total of £1.45m has been invested in Xeros by Finance Yorkshire over three funding rounds. The Leeds University spin-out, based on the Advanced Manufacturing Park (AMP), has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes. Instead a small amount of water is added to loosen clothing stains and activate the beads.

McWhirter added: "Xeros is a great Yorkshire success story – an outstanding example of a technology-based company that has developed through innovation and some fantastic engineering an idea which now has huge potential to revolutionise the commercial and domestic laundry sectors.

"Xeros' success demonstrates the value of Finance Yorkshire's Seedcorn fund. We invest in early stage companies so they can grow, become successful and reach the point where, like Xeros, they can raise additional capital from the markets to fund their expansion."

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News: Finance Yorkshire fills the gap

Gap funding provided by Finance Yorkshire is making a real difference to growing businesses in the region.

Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m. A funding gap is a shortfall in capital needed to fund future operations or projects and is often used to fund research and development or purchase equipment needed to bring a product to market.

Since being launched in August 2010, more than 300 SMEs in Yorkshire, the Humber and North and North East Lincolnshire have found additional gap funding at Finance Yorkshire. It has made more than 477 investments totalling some £56m and this has led to 6,120 jobs being created and/or safeguarded.

Alex McWhirter, chief executive of Finance Yorkshire (pictured), said: "These figures demonstrate the huge value and difference Finance Yorkshire's gap funding is making to businesses in Yorkshire and the Humber. We plan to continue to invest as much as we can to enable our regional companies to innovate, expand, access new markets, create jobs – and prosper."

Finance Yorkshire has attracted £30m investment from the European Regional Development Fund (ERDF), £15m from Yorkshire Forward's Single Programme, and £45m match funding from the European Investment Bank. It works with its considerable network of financial intermediaries and business advisers to inform companies in Yorkshire and the Humber about the funding it has available to support business growth in the region.

Mr McWhirter added: "We complement the funding available from the banks and we can invest in SMEs – it's as simple as that.

"We know that it is not always possible for SMEs to secure finance from traditional funding sources to achieve their ambitions and that's where Finance Yorkshire can step in and fund this gap.

"Businesses need to be aware that Finance Yorkshire is here, willing and able to provide the potential funding they need for business growth. Many of our companies have plans to invest in their businesses which is great news for the regional economy and Finance Yorkshire can help them do just that."

Rotherham firms securing funding include AME Group Ltd, Xeros, Approved Food, RediRack, S3-ID, Xiang Trading Ltd and Labfacility.

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