YFM Group News Feed

YFM Exits Sarian in $30.5M Sale - 30/04/2008

A Yorkshire electronic communications specialist Sarian Systems Ltd has been acquired in a cash deal worth $30.5m by US NASDAQ quoted technology firm Digi International Inc.

Under the terms of the agreement, Sarian will operate as a subsidiary of Digi International, retaining its management team and headquarters in Ilkley.

Sarian is the UK’s leading manufacturer of wired and wireless communications products for mission critical applications, generating sales across 40 countries amounting to approximately £5.25m in the year to 30 June 2007. Further significant growth is forecast for the current financial year.

Founded in 1999 by Andy Hood and Robin Hudson and backed with early-stage funding provided by YFM Private Equity (YFM), privately owned Sarian produces IP router devices vital to the day-to-day running of a business. Such applications typically include ATMs and lottery terminals, where any downtime will bring business to a halt, as well as resulting in lost revenue and customer dissatisfaction.

Blue chip customers include American Express, Travelex and BP Oil as well as major telecommunications and ATM operators. Sarian products are used in more than 75 per cent of UK petrol stations and it is the preferred supplier to companies operating 80 per cent of the worldwide lottery market.

The Yorkshire firm featured in the 2006 Sunday Times Microsoft Tech Track 100 as one of the UK’s fastest growing technology companies. Sarian was also named ‘Yorkshire Post Small Business of the Year’ in 2006, and was one of Deloitte’s Europe Middle East and Asia Fast 500 Companies in 2007.

Digi International’s global presence will enable Sarian to reach new markets in North America, South America and Asia-Pacific, with economies of scale in purchasing and improved supplier relationships. Both companies will also benefit from the exchange of technology.

“With the great cultural and technical fit we see Digi as the ideal partner to take the fast growing business that we have in Europe, Scandinavia and Southern Africa into many other geographic regions,” said Andy Hood, managing and technical director of Sarian. “Digi’s market-leading drop-in networking technology and our flexible wired and wireless IP routing capability create a powerful global combination.”

For Digi the acquisition will allow it to expand its operations into the global enterprise market, taking advantage of Sarian’s industry-leading IP routers, designed specifically for communications critical to day-to-day business operations.

“Financially, we’re acquiring a high-growth, profitable wireless business that can be expanded from Europe into other parts of the world,” said Joe Dunsmore, chairman, president and CEO of Digi.

He added: “We have very similar corporate cultures and vertical go-to-market strategies, so integration will be straightforward and with Sarian’s strong European engineering and sales presence, we’re immediately increasing the international content and capabilities of our business.”

David Gee, Investment Director at YFM who sat on the Sarian Board as a Non executive Director since their investment in 2000 stated “It was our privilege to be involved in their journey from start up to a successful international business. This demonstrates what can be achieved with the right combination of technical and commercial skills together with good old Yorkshire grit and determination”.

Dave Irwin, of BTG McInnes Corporate Finance, who advised on the deal together with Sonia Alghita, said: “This is a great Yorkshire success story. Sarian is a business that has achieved continuous success since it was formed, which has been delivered through management’s dedication to developing market-leading technology. Having already been recognised in the Tech-Track 100 and last year’s Deloitte EMEA Fast 500 listings, the business is well positioned to achieve considerable future growth.

“The outcome is great news for Sarian and represents a very logical strategic move for Digi, delivering material benefits for both parties in terms of shared technology and immediate access to new markets.”

The deal marks the culmination of a successful investment for David Gee, of private equity fund YFM. Other advisors in the deal included John Hamer and Mark Whittaker of Walker Morris and Clare Mackintosh of Keeble Hawson.

YFM Invest further in International recruitment agency Darwin Rhodes - 28/04/2008

Funds managed by YFM Private Equity and YFM Venture Finance (YFM) have increased their investment in Darwin Rhodes Group, a fast growing global specialist in professional financial services and insurance recruitment, by £1.7m.

This investment increases the funds shareholding to 31 per cent and values the Darwin Rhodes Group at £8m.

The same investors will provide Darwin Rhodes Group with access to a further £5m follow-on funding to achieve their expansion plans. As part of this growth activity Darwin Rhodes is actively seeking acquisition opportunities both in the UK and key international markets.

Darwin Rhodes Group has grown revenues by 100 per cent over the last two years and has achieved in excess of £1million profit for the year end to 31 March 2008. The recruitment firm’s broadly spread revenue base, in which no single client accounts for more four per cent, consists of a portfolio of blue chip multinationals including HSBC, AIG, Lloyd’s, PricewaterhouseCoopers LLP, Prudential plc and UBS Investment Bank.

Peter Dunphy, Darwin Rhodes Group, CEO said the company’s success has been generated through specialising in the actuarial, insurance, pensions and banking and investment sectors.

“The additional capital from YFM will be used to expand Darwin Rhodes’ unique model, organically and through acquisition, to other industries and geographies. We have a track record of successful expansion during all stages of the economic cycle and our board and investors are confident that Darwin Rhodes Group will continue to build on this success over the coming years.”

David Gee, Investment Director, YFM commented:
“The impressive track record of the management team since YFM’s first investment three years ago made the opportunity to invest additional sums an easy decision. I am confident Peter and his team can build on their success to date and look forward to working with them to help them achieve their ambitious plans for further growth.”

Darwin Rhodes is focused on business opportunities in China, India and the Far East and in an international marketplace that is characterised by increasing structural demand, skill shortages, rising remuneration, globalisation and deregulation.

CMS SUPATRAK SET FOR GROWTH FOLLOWING INVESTMENT FROM SOUTH WEST VENTURES FUND - 16/04/2008

A Swindon company which provides vehicle/asset tracking and mobile workforce solutions has secured £300,000 in second round funding from the South West Ventures Fund. The funding will allow CMS SupaTrak to exploit growth opportunities in a rapidly expanding market.

CMS SupaTrak has established itself as a market leader with its innovative products, ‘SupaTrak’ and ‘JobTrak. Commercial fleet companies, couriers and local government are among those using CMS SupaTrak solutions to manage their services and to monitor field staff. SupaTrak is a-low cost tracking solution that allows users to track and trace their vehicles and staff, improving the security of goods and assets and enabling quicker responses to customer queries and improved management of logistics.

JobTrak is a complementary system which allows users to provide their mobile workforce with important job information. Recently, the company has launched EcoTrak, which in addition to conventional vehicle tracking, enables fleet operators to measure actual fuel usage, carbon emissions and monitor driving style for the purpose of managing fuel costs.

South West Ventures Fund has been joined in the round by former UK Vodafone Corporate managing director, Graham Ward, who joined the Board of CMS SupaTrak as Non Executive Chairman in 2006. The South West Ventures Fund initially invested in the company in 2005, enabling CMS SupaTrak to exploit a number of growth opportunities. The company has since grown significantly and diversified its client base to include organisations such as Royal Mail, Network Rail and Hampshire County Council.

CMS SupaTrak will now recruit extra staff to accelerate its sales strategy and capitalise on a market poised for rapid growth. Analysys, the global advisers on telecoms, IT and media, reports that vehicle tracking will be one of the first sectors to mature in the European wireless data market, which is forecast to be worth EUR10bn by 2011. A three-fold increase in growth is forecast in the American, Japanese and European markets by 2013.

Growth in the market generally is being driven by the ability of companies to provide improved customer service using the latest technology, and in the UK specifically by increased legal and administrative pressures following recently introduced legislation, such as the duty of care to shift workers and personal tax compliance for mileage claims.

Jason Airey, Managing Director of CMS SupaTrak, said: “We are thrilled to receive this funding, which will enable us to develop opportunities that would otherwise not be possible. This investment is important to the continued growth of the company and will enable us to further strengthen our place in the market.”

Speaking about the investment, Alison Briggs, Investment Manager at YFM Group, managers of the South West Ventures Fund, said: “CMS SupaTrak’s products offer exceptional functionality and excellent value for money. This latest investment, coupled with its strong management team, puts the company in a great position to maximise the market opportunities ahead.”

YFM Private Equity exits Tekton again! - 13/04/2008

Tekton Group, the UK’s fastest growing construction software specialist, has been sold to Sage (UK) Ltd for £21 million. The sale represents a complete exit for the funds managed by YFM, realising a 2.7 times return, equivalent to an IRR of 121.7%.

YFM Private Equity originally invested £700,000 in December 2005 backing serial entrepreneur Richard Beaton and his team in the management buy-out of Intuita Limited and the acquisition of EVision. Twelve months later the group acquired Sitestream Software, a transaction that involved the introduction of Inflexion, who invested £4.6 million in the new group. At this point YFM realised a significant profit and rolled over some of its proceeds alongside the management team into the new Tekton Group.

Nigel Barraclough of YFM said: “We are delighted to have been involved with Tekton over the last two and a half years after funding the initial MBO in December 2005. Following the further expansion of the group and associated refinancing of the business, we were pleased to roll over some of our proceeds into the new Tekton Group. This sale represents an excellent return for us and we look forward to working with Richard again in the future”

The ambitious development of the company under Richard’s leadership impressed YFM, who fully supported the team and enabled them to invest heavily in the company’s products, infrastructure and sales force.

Commenting on the realisation Richard Beaton, MD of Tekton said “With the help and support provided by YFM Group we achieved our growth objectives. The original investment and commitment to the company has been invaluable in enabling Tekton to position itself as the UK’s fastest growing construction software specialist. ”

Tekton, which employs over 90 people, is based in Manchester with offices in a number of locations throughout the UK. Customers include civil engineers, builders and developers, maintenance and other contractors.

The investment has been another great success for YFM who maintained a close working relationship with the company during its transition from being a small business into the fastest growing construction software specialist in the UK.

GLE Group signs definitive agreement to acquire the YFM Group - 03/04/2008

UK equity and venture capital leaders agree to join to widen the service offering to small and growing businesses across the UK.

GLE Group, a leading economic development company delivering investment, products and services to promote small business growth, today announced the completion of its purchase of the YFM Group. By acquiring YFM, the UK’s small company investment specialists, GLE is well positioned to offer a wider spectrum of financial investment support to UK small and growing enterprises.

“The joining of GLE and YFM will open up new opportunities for both businesses“, said Martin Large, Chief Executive, GLE. “Both companies share a similar history and a passion for innovative solutions for small businesses. The union will further build on the national presence and strong reputation of YFM. I very much look forward to a very positive future for GLE and YFM”.

“Joining forces makes logical sense for YFM employees, clients, partners and the wider business community. YFM’s businesses fit very well alongside GLE’s Growth Capital and Business Development activities and together both Groups will be significantly stronger.” said David Hall, Managing Director of Private Equity, YFM.

“The union with GLE will enable the continued activity of both investment arms, YFM Venture Finance and YFM Private Equity, in addressing the perceived gap in the market for risk capital. “ said Peter Garnham, Managing Director of YFM Venture Finance.

YFM Group Chairman Clive Leach is taking retirement from the business. He said, “I would like to wish everyone all the success for the future, having developed the company’s reputation as the most active provider of investment services across the UK, I believe it was incredibly important to find a purchaser who would keep the Group together, and fuel the continued growth as well as invest more into the regional infrastructure.”

Roger Esler, corporate finance partner, and Dale Alderson at Deloitte in Leeds advised YFM Group on the sale. Roger Esler said: “YFM Group has been a critical and influential part of the regional financial markets for a very long time. It has been a loyal supporter of smaller businesses, establishing itself as the leading player in this specialist market. The combination with GLE will provide additional scale and expertise and we are delighted to have assisted in bringing these two businesses together and to have secured continuing commitment to funding SMEs in our region.”

YFM Business Development, which manages the Manufacturing Advisory Service in the Yorkshire & Humber region, will work closely with the business development team at GLE.

With the announcement, YFM will become an arm of GLE with a common business model of providing investment to UK small and growing businesses. GLE currently operates a range of businesses, including property investment and development, business finance, business development and an economic development consultancy. Each business is run commercially and some areas also have some social objectives too. YFM’s Head Office in Leeds will remain the focus of the YFM activities and there are plans to continue to operate under the YFM brand. The combined businesses will now employ over 320 highly qualified staff in the UK and on the Continent, and take funds under management to £335 million.

Legal advisers to the deal were Jim Gervasio and Paul Johnson of Keeble Hawson.

www.gle.co.uk

Further information:

David Hall, MD YFM Private Equity tel. 0113 294 5000

Peter Garnham, MD YFM Venture Finance tel 0113 294 5019

Press enquiries to Ann-Marie Crookes tel 0113 368 5251

YFM Private Equity invests in KDC �12.5m MBO - 02/04/2008

KDC Contractors Limited, the specialist decommissioning, demolition and remediation contractor has been bought by its management team in a deal worth £12.5m. The business, with headquarters in Denton, Manchester employs around 100 people and is set to see strong growth over the next few years.

Barclays Ventures provided equity finance whilst senior debt and working capital was provided by Yorkshire Bank and YFM Private Equity provided mezzanine finance. BDO Stoy Hayward’s Manchester office advised management on the deal.

The deal sees shareholder Barry Kilroe selling the business to the senior management team led by Ian Smithson. The MBO team (Ian Smithson, Martin O’Donnell, Will Simpson, John Bloodworth and Christopher Sandground) will be joined by Peter Higton as Non Executive Chairman. Peter was a senior member of the private equity backed MBO of NNC, a specialist nuclear engineering services operation which was sold to AMEC in 2005.

Barry Kilroe, who was advised by Andrew Curwen at Gorvins, is to focus on his other business interests in Crane Hire, Property and Waste Recycling.

Formed in 1985 KDC has demonstrated rapid recent growth and forecasts a turnover in excess of £20m in the next 12 months.

The business specialises in the decommissioning, demolition and remediation of hazardous sites in the nuclear, petrochemical and pharmaceutical sectors. There is a huge drive in the UK to clean up hazardous sites. The Nuclear Decommissioning Agency has an estimated £72bn clean up programme and there are major environmental pressures on the petrochemical and pharmaceutical industries to make clean large plants, many of which are now redundant. KDC has the specialist skills and accreditations to operate in these hazardous environments and is set to benefit from the increasing government spend and legislative and environmental pressures in these sectors.

Deborah Heyes from YFM Private Equity Limited, said:

“YFM Private Equity were impressed by the quality and experience of the KDC team which displayed professionalism and a high level of sector knowledge”.

Ian Smithson, CEO of KDC said:

“We have seen rapid recent demand for our services across several sectors. This deal provides us with a quality institutional investor in Barclays Ventures, which will help us expand even further. The management team is delighted with this opportunity. Both Peter and I are looking forward to continuing the successful growth of KDC and I would like to thank Barry Kilroe (the vendor) for his help and support.”

YFM Group invests in text concierge service provider Mantic Point Solutions - 01/04/2008

Air travel will be less stressful for many passengers as they will be able to receive free flight status updates direct to their mobile phone following an investment in Mantic Point Solutions by YFM Group managed Yorkshire & Humber Equity Fund (YHEF) and Partnership Investment Finance (PIF).

Leeds-based Mantic Point runs StreamThru, a white label, virtual concierge service for air travellers and travel service providers. StreamThru is the first free service that provides up to date flight information and other relevant travel information directly to a traveller’s mobile phone.

Air passengers opt-in to receive personalised SMS text messages which reduce the need to carry paperwork (e.g. reminders of booking reference and check-in instructions), keep them informed (e.g. delay notifications, personal boarding calls), and help them pass the time (e.g. exclusive travel related offers).

These updates can also include winter sports reports, weather reports, traffic updates, destination guides, and other fun information (e.g. quizzes, daily horoscopes, lotto results).

For airline clients, such as Monarch Airlines and easyJet, the service provides advertising revenue by allowing airport retailers to target the airlines, customers, and by creating a last minute sales opportunity for items such as trip insurance and upgrades.

Airline passengers fit into the affluent AB demographic, so advertisers gain access to thousands of attractive consumers every day and they can pinpoint exactly who they want to engage with based on each passenger’s profile, journey and preferences.

The funding will assist Mantic Point with its expansion plans to roll out the StreamThru service to other airlines and partners, to increase the range of free and paid for services offered to passengers, and to branch out overseas.

“Mantic Point has developed a wide range of services for travellers, alongside a strong commercial proposition to airlines, airport operators, retailers and travel companies. The company is in a unique position to seize a significant market opportunity,” said Ian Waterfield, YHEF Investment Manager

Alex McWhirter, Head of Enterprise at Yorkshire Forward, said: “Yorkshire delivers first class new media solutions and we are proud to be supporting a company like Mantic Point.”

PIF investment manager David Livesley said: “We are always looking to help businesses expand and SteamThru is a service adding real value to the airlines using it.”

Commenting on the deal, Mike Atherton, Managing Director of Mantic Point said: “We’re delighted to secure this investment from YFM Group. It will allow us to build on the success we’ve already achieved with StreamThru and we’re now well positioned to expand the business and deliver on our growth plans.”

YFM Group’s investment managers have backed a strong management team with industry credibility who are looking to increase their market share and continue with the high level of service already in operation.

In the last 12 months YFM Group has invested in deals worth over £107 million in the Yorkshire & Humber region.

Manufacturing Conference "Takes Off" in Sheffield - 06/03/2008

The 2008 Yorkshire & Humber Regional Manufacturing Conference (organised by the Yorkshire & Humber Manufacturing Advisory Service (MAS) and supported by Yorkshire Forward) ‘took off’ at Sheffield United Football Club (Thursday 21 February) when over 200 delegates drawn from regional manufacturers gathered to hear from successful companies such as leading aircraft manufacturer, Airbus and the world’s largest independently owned forgemaster, Sheffield Forgemasters International Ltd (SFIL).

MAS Y&H is a BERR initiative funded by Yorkshire Forward and managed by YFM Business Development, a subsidiary of YFM Group, providing ‘hands on’ advice and support to manufacturing businesses to improve productivity and efficiency.

Sheffield Forgemaster, chief executive, Graham Honeyman shared the importance of building the workforce of the future with the audience. This year SFIL has 61 apprentices (90% of whom will be offered full time jobs on completion of their apprenticeship) compared to just 3 in 2000.

Around 140,000 jobs are generated in the UK by Airbus wing work. As well as design engineering, its Filton base manufactures wing components and assembles parts prior to delivery for inclusion in wing assembly.

Jenny Body, Airbus, R&T Government relations manager, explained how innovation is often the solution to challenges facing the company, such as needing to reduce weight, improve manufacturing time, reduce cost and minimise environmental impact.

EEF chief economist, Stephen Radley highlighted the global challenges, both opportunities and threats, facing UK manufacturers. He said that there were growing signs of a slowdown in world markets and that rising costs of energy, metals and other raw materials (with limited ability to pass these costs on to customers) were impacting on UK manufacturers. However, on a positive note UK plc is still the world’s sixth largest manufacturer with exports up by 31% between 2003 and 2006.

Another keynote speaker was Alan McLenaghan, managing director of Saint-Gobain Glass UK (part of the Saint-Gobain group). Located near Selby, North Yorkshire, the 650-tonne-per-day process plant is strategically located to manufacture and supply the UK and Ireland with clear float glass. During his talk he described how the plant was determined to minimise its impact on the environment and the importance St Gobain places on being environmental and resource efficient throughout the whole of the plant.

Keith Copeland from Nissan Motor Manufacturing UK (NMUK) outlined the benefits of implementing Lean manufacturing. Based in the North East, NMUK has a current workforce of 4,500 with another 800 staff being recruited in 2008. Keith explained how using and embedding continuous improvement including ‘training our people in these tools and principles which they actually use in their daily work and challenging everything we do on a regular basis’ has helped the company maintain its position as a leading car manufacturer – producing 400,000 vehicles last year.

Delegates also attended a series of topical workshops presented by local manufacturers Leeds-based Franklin Windows; Bradford-based Sunflower Medical and Huddersfield- based W S Westin.

Robin Watson, regional director of MAS added: “We are very grateful to everyone who contributed to making this year’s conference such a success. We hope that delegates will have gained some valuable knowledge which will make a marked difference to their businesses and help them to ‘raise the bar’ for their future performance.”

BSC VCT plc New Appointment - 01/03/2008

Helen Sinclair has been appointed as a non-executive director of the British Smaller Companies VCT plc (BSC VCT) and following shareholder approval will succeed Sir Andrew Hugh Smith as Chairman of the BSC VCT at the AGM in August.

Helen has an impressive track record, having graduated from Cambridge University with an MA in Economics and an MBA from INSEAD, she worked at Security Pacific Hoare Govett and 3i before becoming Managing Director of Matrix Private Equity until 2004. She is married with 5 children and in her spare time enjoys travelling.

Commenting on her appointment Helen said “The British Smaller Companies VCT has an excellent portfolio of companies and growth record and I am looking forward to developing the investment strategy of the fund. The current £5 million top-up offer will enable the BSC VCT to take advantage of the value that we will see in the market over the next 12-18 months, and I am investing in this offer.”

The BSC VCT is managed by YFM Private Equity, part of the YFM Group, and David Hall, MD YFM Private Equity commented “Over the last 5 years we have seen the Net Asset Value of the BSC VCT increase by 57.2 pence per share (88%) of which 19.5 pence per share has been distributed in tax free dividends to shareholders. We look forward to working with Helen to continue the growth and performance of the BSC VCT as she brings a wealth of experience to the VCT”

During 2007, YFM Private Equity was named VCT Fund Manager for the performance of British Smaller Companies VCT by Growth Business magazine. The British Smaller Companies VCT is a Top 3 performer (out of 168, Source: Trustnet.co.uk) by Net Asset Value (NAV) growth over 3 and 5 years and invests in a portfolio of carefully selected companies with excellent growth prospects and it is managed to maximise NAV growth, shareholder returns and tax free dividends.

YFM Group has over 25 years experience of working with innovative and fast growing unquoted and AIM listed companies who are seeking equity funding of up to £8 million and are acknowledged as the small business investment specialists. YFM Group are the UK’s most active investor in SMEs (as verified by Venture Index), and in January 2008 announced their busiest and most successful year ever; During 2007 they raised a further £50 million, invested over £48 million in 111 companies throughout the UK, and exited 14 investments making on average 3 times money for their investors.

YFM Private Equity provides funding for Fishawack - 29/02/2008

YFM Private Equity has provided £2.55million to back the £6 million MBO of specialist Medical communications business, Fishawack. The Chandos Fund will invest £2.05 million alongside £0.5 million from the British Smaller Companies VCT and a debt package from Co-op Bank.

Fishawack is an established, specialist healthcare communications agency focusing on the medical sector with a strong reputation for providing specialist support for this sector; clients include Sanofi-Aventis, Roche, GSK, Bayer-Schering and Shire. Fishawack has offices based in Knutsford and Abingdon.

Tim Mustill, MD of Fishawack said “This is a very exciting development for us. Fishawack is a very strong brand with a solid and growing reputation for excellence. We are now very well placed to deliver on our ambitious growth and development plans. YFM Group have been supportive and straightforward throughout the buyout process and are an ideal partner for us as we look to grow”

Mike White, Investment Manager for the Chandos Fund commented "We are pleased to have made our fifth investment from the Chandos Fund within a year of our first close. This is an excellent opportunity to buy into a quality business with a strong reputation for excellent service and knowledge in a growing niche of the market. The Chandos fund has now invested £8.5 million in 5 businesses across the UK and this deal demonstrates our desire to back management teams and entrepreneurs from a variety of industry sectors”

Dan Jackson, Corporate Finance Partner at Langtons Corporate Finance, said “Fishawack is a strong fast-growing business and we are delighted to have worked with the company to structure the transaction and to secure the investment from YFM and Co-op.”

AIM-listed ArgentVive plc acquires information management systems developer Solcara - 18/02/2008

The Capital Fund has achieved its fifth successful exit from an investee company following the £4.5 million acquisition of Solcara Ltd by ArgentVive plc. Since its foundation in 2001, Solcara has developed information management software that now delivers efficiency and productivity savings for over 130 blue chip clients in the UK and Europe. Companies as diverse as AstraZeneca, De Beers, VISA and Thomas Cook all benefit from Solcara's systems that can facilitate knowledge exchange, information publishing and crisis management.

The UK's Foreign and Commonwealth Office, the Department for Environment, Food and Rural Affairs, Edinburgh City Council, the Metropolitan Police Service and 26 other police forces are among the public sector bodies on Solcara's client roster. Established in 2002, The Capital Fund is a £50 million venture capital fund that backs fast-growing small and medium-sized companies in the Greater London area, and is the largest of the nine UK regional venture capital funds. Solcara's merger into ArgentVive has resulted in a highly profitable return on The Capital Fund's original investment of £250,000 in July 2003.

Solcara's founder, Ray Jackson, commented: "The Capital Fund's investment came at a very important time in our commercial development. It enabled us to solidify the business and bring to market our four leading software products - Crisis Control Centre, Communications Centre, SolSearch and Know How. We were able to invest in technical development of the products and put in the place the sales and marketing expertise needed to launch them successfully. Joining the ArgentVive Group is a great opportunity for Solcara to be part of a fast growing, well-funded quoted organisation. There are numerous exciting new markets that ArgentVive's expertise will open up for Solcara's products."

Commenting on The Capital Fund's role in Solcara's success, Mr Jackson said: "The Capital Fund and the other regional venture capital funds are excellent examples of government-backed initiatives that really work. It can be very difficult for companies like Solcara to get venture capital funding, and supporting growing entrepreneurial businesses is just what The Capital Fund should be - and is - doing." Following the acquisition deal, Mr Jackson was appointed Managing Director of the ArgentVive Group and Chairman of Solcara. Rob Martin, previously head of Solcara's information management division, is the new Solcara Managing Director.

Kevin Fleming, Finance Director of ArgentVive, said: "This is a landmark acquisition for ArgentVive. The acquisition of Solcara strengthens significantly our own management expertise, provides us with an impressive list of blue chip clients for our B2B division, and gives us access to valuable development resources, intellectual property and expertise. We believe this acquisition gives the group a solid infrastructure enabling us to scale the business through both the development of Solcara in its own right and the exploitation of Solcara's leading technology for the benefit of other group companies."

Benjamin Davis, Investment Manager at The Capital Fund, said: "We are delighted that the hard work of Ray Jackson and his team has been rewarded by the sale of Solcara to ArgentVive. This is a good result for the Fund and we are pleased that the Fund's investment helped the management realise their potential."

Solcara is the fifth portfolio company from which The Capital Fund has successfully exited. Avanti Screenmedia Group, a provider of satellite communications and consultancy services to UK businesses, floated on AIM in 2004. UK Explorer, a wired and wireless internet access solutions company, was acquired by Spectrum Interactive in 2005. Ekay plc, a full service advertising agency providing media planning buying design and production to clients across media types, floated on AIM in 2006. And, most recently, Touch Clarity, a provider of intelligent online targeting software that predicts user requirements and optimises content for each visitor, was purchased by Omniture Inc in February 2007.

Provision Communications Secures Venture Capital Funding for a Bright Future - 14/02/2008

Bristol-based ProVision Communications, which specialises in digital wireless video technology, has secured £750,000 in venture capital funding from the YFM Group-managed South West Venture Fund, Finance South West Growth Fund and NESTA Investments.

ProVision Communications, a spin-out from the University of Bristol, develops wireless video solutions for global clients, ranging from in-home media gateways to wireless video systems for sports and other spectator events. The company’s expertise covers most wireless standards, including WiFi, WiMAX and DVB-T.

ProVision’s technology has been proven in demanding situations and recently was successfully used to enable real-time multicast video streaming over WiFi at the 2007 World Rally Championship (WRC) Wales Rally GB. Spectators in the hospitality area were able to select from a choice of video channels showing different parts of the rally course, using WiFi enabled PDAs and smartphones equipped with ProVision’s software decoder.

Following successful demonstration of the technology, ProVision has been invited by the Government’s UK Trade & Investment export support body to showcase its wireless products at the GSMA Mobile World Congress 2008 in Barcelona in February.

David Sykes, CEO of ProVision, said: “After several years as a successful consultancy working for world-leading companies such as the BBC, Mitsubishi and Sky, we have identified an outstanding market opportunity which will enable us to develop into a technology-led consumer products company.” He continued: “We are very pleased to have secured this investment which, combined with our world class expertise in wireless video technology, means we are well-positioned to meet the challenges ahead.”

Julian Dennard, Senior Investment Manager at YFM Group, managers of the South West Ventures Fund, added: “We are very pleased to have made this investment and look forward to working closely with ProVision Communications. With increasing demand for wireless products providing ease of connectivity and installation, there is potentially a huge market for its innovative offerings.”

Atlas Genetics secures �2m to develop tests - 14/02/2008

South West Ventures Fund and Finance South West Growth Fund have led a £2.1m further funding round in the Bath-based company, Atlas Genetics, which is developing a ‘point of care’ molecular diagnostic platform that gives clinicians results in less than 30 minutes from taking the patient sample. The Company is currently working on tests for meningitis, Chlamydia, Group B Streptococcus and the hospital “super-bug” MRSA.

The Company, formed in 2005 as a spin-out from Bath University, has raised the additional funds to conduct a clinical evaluation for the detection of Group B Streptococcus in pregnant women, an infection which can lead to life-threatening sepsis and meningitis in neo-natal children.

This latest round sees further funding being provided by existing investors, South West Ventures Fund, GEIF and private investors through the SWAIN business angel’s network. New investors in the round are the Finance South West Growth Fund and Braveheart Ventures.

Atlas Genetics is developing the point of care VeloxTM system, a portable device which delivers the benefits of molecular testing together with laboratory quality results, within 30 minutes. This allows doctors to test and treat a patient within a single visit or to have a specific diagnosis in an emergency situation. This equates to better outcomes for patients. In addition it allows clinicians to prescribe the most effective drug rather than use broad-based antibiotics which can encourage “super-bugs”.

In the VeloxTM system a patient sample, such as blood or urine, is loaded directly into a disposable card which is then inserted into a reader instrument. An electronic tag developed by the company automatically indicates the presence of DNA from the pathogen responsible for the infection. This technology offers significant advantages over conventional methods and makes it feasible to produce a simple to use and portable device with the sensitivity and specificity of central laboratory equipment.

Development of the disposable card is being undertaken with the world-leading micro-fluidic company Micronics Inc, based in Seattle.

Dr John Clarkson, Chief Executive Officer of Atlas Genetics, said: “The initial funding secured from our investors has enabled us to produce the prototype disposable card, and this second round will take us through development to the point where the Group B Strep system can be evaluated with clinical samples.”

Nick Simmonds, Investment Manager at YFM Group, manager of the South West Ventures Fund, said: “This second round of funding will allow Atlas Genetics to develop a platform for many exciting applications. The market for point of care molecular diagnostics is expanding rapidly and is allowing earlier treatment of potentially serious infections. We are delighted to back Atlas Genetics and look forward to working closely with the company as it develops.”

YFM Group - End of Year Results - 17/01/2008

YFM Group has announced one of its busiest and most successful years after investing more than £47m in 109 companies.

During the past 12 months YFM Group, the most active investor in the UK small-to-medium enterprise sector, has seen the number of companies backed by its funds rise by 20 per cent while deal size has risen by more than 60 per cent to £208m.

Over the last 12 months the group raised a further £50m, invested more than £47m in 109 companies throughout the UK, and exited 12 investments making on average three times return on investment.

David Hall, Managing Director YFM Private Equity, said: “This has been a fantastic year for YFM Group as the launch of our new Chandos Fund has enabled us to participate in larger transactions and complete equity transactions of up to £8m.

“Combined with the continued good performance of the British Smaller Companies VCT and some tremendous realisations this has increased our profile in the market. This means we are now seeing more business plans than ever which has helped all the funds in the Group and their investors.”

The money invested by YFM Group has enabled entrepreneurs and business owners to increase the value of their company, create hundreds of jobs, improve competitiveness and help their companies outperform the market and drive the growth of UK plc

Andy Cucksey, YFM Group’s Head of Marketing said: “Over the last five years YFM Group have invested over £110m in deals worth more than £630m helping hundreds of management teams and entrepreneurs grow and develop their business. This demonstrates the positive contribution that venture capital can make to the UK economy.

“Venture capital and equity investment has very much entered the mainstream in the UK and more entrepreneurs now see private equity as a genuine alternative to traditional bank debt when they are growing. We expect this trend to continue; especially as the effects of the credit crunch start to bite”

During the year YFM Group completed its single largest deal with the backing of the £21m management buy-out of RMS Group - a port operator and stevedoring business based on the Humber estuary - in which four funds were used to provide £4.5m equity.

Other companies backed during the year include the management buy-in of recruitment group Harris Hill; the MBO of kitchen manufacturer and retailer Harvey Jones; the MBO of Cater Plus, which offers catering services to residential care homes and development capital for Intempo Digital.

In addition to the record investment levels enjoyed by YFM there have also been 12 successful exits and realisations which have generated more than £15m for investors. These include Pressure Technologies which floated on AIM generating 8.2 times money and an Internal Rate of Return (IRR) of 125 per cent ; Touch Clarity, which was subject to a trade sale which generated an IRR of 59 per cent; the secondary MBO of Tekton which generated 2.25 times money and an IRR of 123 per cent and Secure Mail Services which was subject to a trade sale and generated 3.4 times money and an IRR of 46%.

YFM Groups portfolio includes more than 250 companies. During the past 12 months investments were made throughout the UK, across all industry sectors and at all stages of the company’s development from early development capital to AIM listings. Key sectors backed include services, Internet, computing, software and hardware, manufacturing, medical, pharma & biotech, energy and consumer goods. Significant increases in investment levels were seen in Yorkshire and Humber (+128%), Greater London (+75%), the South West (+97%) and the North West (+18%)

2sms set to expand in the UK and USA - 17/01/2008

Mobile phone messaging services provider, 2sms, has secured an investment of £450,000. The capital injection includes £250,000 from The Capital Fund who invested alongside Richard Goldstein, an experienced investor in the SME sector, who has also joined the 2sms Board. Established in 2002, The Capital Fund is a £50 million venture capital fund that backs fast growing small and medium-sized companies in the Greater London area, and is the largest of the nine UK regional venture capital funds.

2sms provides text-messaging services to businesses, meaning they can easily and quickly contact staff and customers by mobile phone text message. Alerts can be sent to individuals or groups, and all data is fully secure and encrypted. And, crucially, 2sms has developed software that can be bolted onto whatever back-end systems its clients are currently using, thereby avoiding technology conflicts.

As mobile phones become an ever more widely-used method of communication, the popularity of text messaging as a convenient method of sending and receiving information is growing rapidly. The services offered by 2sms allow companies to communicate effectively and instantly - messages are typically delivered in fewer than five seconds - with their employees and clients directly from the desktop. And taking advantage of the latest technology means that the messages are delivered at low cost.

Text messages sent using 2sms's systems can be as simple as informing a customer that her car is ready to be picked up or that his package has been delivered. For internal communications, there are a number of occasions when the ability to instantly send the same message to a number of employees is extremely useful. Similarly, in an emergency situation, such as a bomb threat or a when a fire alarm is activated, it is vital that key employees are kept up-to-date with what's going on and with the procedures being implemented.

On a more day-to-day basis, senior management teams can be sent regular financial updates and HR departments can send out targeted operational information - and can be sure that the recipients receive the message in a convenient and user-friendly format.

Tim King, 2sms Chief Executive, highlights three key areas where 2sms stands out from its competition. "Firstly, we work with businesses that trust us to deliver confidential and sensitive information. So we have developed a completely encrypted system, certified to ISO 27001 standards, which means our customers can be sure their data is secure. Secondly, we can text-message-enable whatever systems our customers currently use, and not land them with the need to purchase a whole new software package. And, thirdly, we provide a genuinely 24/7 service. We realise that if you want to get messages out to paramedics at 3a.m. then you also need to be sure they are received. So our team is ready to make sure they are - and not just between 9 and 5."

Since commencing operations in 2000, 2sms has been concentrating on the UK market, where it now has over 1500 customers, including a number of FTSE 100 companies. The Company is now expanding into the US.

Tim King said: "We now have a fantastic opportunity further to consolidate our position here in the UK, and also to start developing a significant customer base in the US, working closely with a major leading distributor. The investment from The Capital Fund and Richard Goldstein has come at just the right time. We'll be using the funds to grow our US operations, expand our sales support team and continue to upgrade our systems and servers to cope with the rapidly increasing traffic levels we're experiencing."

Benjamin Davis, Investment Manager at The Capital Fund, said: "2sms is a great example of a successful UK company that has a huge opportunity to build on this success in the US market. We're delighted to have come on board at such an exciting time - 2sms has the right management team in place and an industry-leading product to sell."

Commenting on the fundraising process, Mr King said: "It was a pleasure working with Benjamin Davis at The Capital Fund and Richard Goldstein. They both provided us with a great deal of advice and attention during the rigorous due diligence processes."

Finance South West backs Wykeham Inns - 16/01/2008

The former glass-blowing works on Plymouth’s Barbican will be restored to its former glory and converted into a restaurant by Wykeham Inns thanks to deal totaling £1 million with Finance South West.

Wykeham Inns, which has five ‘gastropubs’, a restaurant and a boutique hotel across the region, has exciting plans for the historic site and the new bar and restaurant, which will seat 70 people, will open in time for Christmas following a £600,000 conversion.

John Steven, owner of Wykeham Inns, has secured funding from the Finance South West Growth Fund in syndication with the South West Ventures Fund, both managed by the YFM Group. This investment takes Finance South West over the £4 million mark, having now invested in nine companies and created or safeguarded 160 jobs.

John Steven said: “Our business started just under three years ago and we have grown steadily to our current seven properties. Our business has won many regional and national awards in its short life, including the National Pub of the Year award. We have been delighted with the support and approach taken by Finance South West; decisive, straight talking, no-nonsense, and all agreed in a matter of weeks - what more can any entrepreneur growth orientated business ask for?”

Keith Masson, Fund Manager for the Finance South West Growth Fund, said: “We are very pleased to be investing in Wykeham Inns and we look forward to playing a significant part in its future success.”

Wykeham Inns received legal advice from Gill Akaster, in Plymouth, and financial advisers were provided by Francis Clark, also in Plymouth.

Mark Greaves, corporate finance partner at Francis Clark, commented: “We are delighted to have been able to help facilitate this exciting restaurant venture, which will help to vitalize still further one of Plymouth’s most picturesque and historic quarters. Wykeham Inns is one of the leading businesses working to raise the bar for the hotel and leisure sector in the South West, and it has been a privilege to work on this venture.”

BeCheeky.com Secures Venture Capital Funding For A Rosier Future - 15/01/2008

Poole-based BeCheeky.com, the online retailer which specialises in selling hard-to-find and carefully-selected mainstream lingerie, has secured £200,000 venture capital funding from the YFM Group managed South West Venture Fund. This figure, which was supplemented by Angel investors, is part of a financing round totalling over £630,000.

BeCheeky.com was founded in 2005 by husband and wife team James and Sarah Akin-Smith to take advantage of the growing demand for high quality sensual women’s lingerie. It currently offers over 1,200 individual lines from brands such as Bracli, Lola Luna, Morgan, Princess Tam Tam and Sensualle, and attracts 130,000 individual visitors per month. In addition, it sources innovative lingerie and swimwear from suppliers around the world. The company has a turnover of nearly £1 million and the funding from the South West Venture Fund will assist in boosting marketing efforts and widening the product ranges.

The U.K. lingerie market has achieved growth of 27% over the last five years and is now worth over £1.5 billion per annum. Online sales are growing steadily, driven by easy access to broadband and increasing levels of consumer confidence in online security. According to Verdict Research, the leading authority on U.K. and European retail markets, online shopping is growing 13 times faster than traditional retailing, with the market being valued at £11 billion in 2006 and forecast to reach £28 billion by 2011.

Speaking about the investment, James Akin-Smith, Chief Executive Officer of BeCheeky.com, said: “The funding from the South West Ventures Fund comes at an exciting time for our company, as it will enable us to expand the ‘best of the best’ ranges we carry and concentrate on achieving further growth in what is a rapidly developing market.”

He added: “We believe we have identified a niche in the market for a supplier of the best branded lingerie and swimwear from around the world. There is a growing demand among mature and increasingly self-confident consumers for affordable pleasures such as high quality sensual women’s lingerie. We are confident that with this funding and our approach to product selection, we will be able to maintain a high-growth strategy.”

Nick Simmonds, Investment Manager at South West Ventures Fund at YFM Group Bristol office, said: “BeCheeky.com’s rigorous and professional business approach means that it is well-positioned to take advantage of the growth of the lingerie market and the growth in the online shopping market in general.”

He continued: “We are impressed at the systems already put into place by BeCheeky.com and are pleased to offer further support that will enhance the growth of this thriving business

YFM Group Funding Drives TBiConnect�s Expansion And Attracts Ex-Amstrad CEO To The Board - 15/01/2008

Cheltenham-based TBiConnect Limited, has secured £330,000 venture capital funding from the YFM Group-managed South West Ventures Fund. The investment supports the go-to-market strategy for the TBiConnect business-to-business eCommerce service. TBiConnect is to be chaired by David Rogers, a former chief executive of Amstrad Plc and Lucent EMEA.

TBiConnect unites corporate organisations with their supply chain securely through the internet, allowing the full automation of “Purchase to Pay” processes between suppliers and buyers. TBiConnect controls and manages the exchange of electronic transaction documents (invoices, remittances, purchase orders etc) securely between supplier and customer at very low cost and without changing IT systems at either end. The service replaces business paperwork and automates transactions quickly, simply and securely, reducing administration costs to pence per transaction.

Nick Simmonds, Investment Manager from the YFM Group, said: “TBiConnect has developed a proven solution to address the business need problems faced by many organisations handling thousands of financial transactions.

“We have been particularly impressed with the excellent management team and are delighted to back this exciting solution.”

TBiConnect is ideally suited to medium and larger businesses, handling at least 100,000 financial transactions per year, where the administration of accounts payable and supplier account queries can fundamentally undermine the overall performance of the financial management function.

Enterprise Foods, an early adopter, has used TBiConnect since March 2004. Supporting most of the major food service and supermarket corporates, Enterprise Foods has processed in excess of 3.5 million invoices and credit notes through TBiConnect with zero transaction failures over the past three years.

The latest adopter of TBiConnect is First Greater Western (FGW), a train operating group and part of First Group Plc. TBiConnect is being introduced across FGW's operating sites, linking its centralised accounts payable operation to over 70 operating sites and a diverse supplier community.

Simon Fox, CEO of TBiConnect, said: “We are delighted to have secured the investment from South West Ventures Fund to support our vigorous growth plans. The business rationale for our service grows ever more powerful as corporates struggle to increase performance in every department, while maintaining stability of operations and IT.”

David Rogers, Chairman said: ”TBiConnect’s customer proposition is compelling. It delivers immediate cost benefits and control to financial systems. We’ve had immediate positive reception and industry recommendations from early customers on the strength of the ease, simplicity and operational benefit they’ve experienced. Investment from the South West Ventures Fund enables TBiConnect to make a forceful entrance for a long-term future in this emerging market.”

Innovate Company Under Spotlight Success - 14/01/2008

Sowerby Bridge based Zodion Lighting (manufacturers of innovative energy saving street lighting systems) has been presented with a prestigious ‘manufacturer of the year’ award by the Highway Electrical Industry.

Zodion’s range of innovative products includes photocell units, which can make a significant difference to energy consumption and reduction of CO2. For example, in a city such as Leeds (where the city’s 90,000 street lights are currently being fitted with Zodion switching units) savings of 780,000 units of electricity can be made every year, which equates to 340 Tonnes of CO2.

The company’s latest product breakthrough (Vizion central telemanagement system) utilises wireless technology to monitor and control street lighting remotely, resulting in financial savings and environmentally friendly use of energy.

Zodion has two divisions, Zodion Street Lighting Controls and LUMO Lighting (which provides low voltage lighting for caravans, motor homes and commercial vehicles). Employing 62 people, the company has a multi million pound turnover and exports around 25% of its products.

For the past few years, Zodion has been working closely with the Manufacturing Advisory Service - Yorkshire & Humber (MAS Y&H) whose advisor, Abigail Levin, has provided the business with ‘hands on’ expert advice and support.

Zodion’s managing director, John Fox explained: “MAS has played an integral role in enabling us to remain at the forefront of a competitive industry, including helping us to up-skill a dozen of our employees in Lean Manufacturing under the Manufacturing MASters programme, which is another Yorkshire Forward backed initiative providing flexible learning courses and qualifications in manufacturing.

He added: “Everyone passed the programme with flying colours and this will certainly be a great asset to our future growth and development and play a key role in ensuring that we remain resourceful and efficient and continue to provide our customers with a high level of service.”

YFM Private Equity backs Buy-in of Able Care - 19/12/2007

YFM Private Equity has backed the buy in of domiciliary care business Able Care. The deal was led for The YFM Group by Deborah Heyes and Paul Cannings with investment from four funds managed by YFM Group – The Chandos Fund, North West Business Investment Scheme, The British Smaller Companies VCT and The British Smaller Technology Companies VCT2.

Able Care provides home based care to the elderly and disabled who wish to live in the community. The company was established 10 years ago by Irene Mayers who is retiring following the sale. It now has over 150 care staff and is one of the leading care providers in the North West.

The buy in team is led by Chris Birkett and Annie Lea along with David Johnson as Non-executive Chairman. The team have many years of experience in domiciliary care having previously established and built up a multi-branch operation. The team has buy and build plans to acquire other businesses which can be bolted on to existing operations to expand the group.

Chris Birkett commented:
“For many years Able Care has provided a high standard of care and quality service with efficiency and professionalism. The business actively promotes the clients right to dignity, privacy, choice and independence. I can guarantee that this level of service will continue under new management.”

Deborah Heyes added:
“Care in people’s own homes is a growing market. We are excited to be backing this strong team in their plans to grow Able Care organically and look forward to supporting them as they look for acquisitions.“

Riverdale Publishing set for further growth following investment - 09/12/2007

Riverdale Publishing Ltd, one of the leading publishers of greetings cards in the UK, has plans for further growth following a £1m equity investment by Partnership Investment Finance (PIF).

PIF’s support of the Silsden-based publisher forms part of a wider company restructuring programme designed to provide a solid financial base from which it can fully exploit future growth plans.

Riverdale Publishing is one of the leading publishers of greetings cards, designing and distributing its long established brands throughout the world. It employs more than 100 full-time staff in addition to a number of freelance artists.

Phillip Needham, Chief Executive of Riverdale Publishing said “This new investment and strengthening of the company’s finances is a vote of confidence in the future of Riverdale. With a significant injection of new development capital, the business now has a firm financial base from which to accelerate growth in the retail sector.

Alison Stevens, Investment Manager at PIF, said: “Phillip Needham and his team have put in place all the building blocks for creating a strong and robust business. Riverdale Publishing’s future under his leadership looks very healthy indeed and with this investment from PIF we are confident the company will continue to thrive.”

Plasticell secures �690,000 including first institutional investment - 26/11/2007

Stem cell technology pioneer, Plasticell, has secured an investment of £250,000 from The Capital Fund. Established in 2002, The Capital Fund is a £50 million venture capital fund that backs fast growing small and medium-sized companies in the Greater London area, and is the largest of the nine UK regional venture capital funds. This investment follows on from a recent injection of £440,000 into the Company by existing Plasticell shareholders and a £1.1 million grant from the DTI's Technology Programme in January to support the development of stem cell robotics. Plasticell will use the new funding to develop its innovative stem cell and drug screening products.

Plasticell is a biotechnology company that has developed and holds exclusive intellectual property rights for two complementary systems in the fields of stem cell research and regenerative medicine.

Stem cells are the primal cells found in all multi-cellular organisms that retain the ability to renew themselves through cell division. Crucially, they can develop into a huge range of specialised cell types. In a developing embryo, stem cells differentiate into all of the tissues needed to grow and develop the parts of the human body. And in adults, stem cells act as a repair system for the body, replenishing damaged cells.

Identifying how stem cells develop, and encouraging them to grow into specific useful cell types, "will continue to be a bottle neck" in stem cell research, according to Plasticell Founder and Chief Executive, Dr Yen Choo.

The Company's Combinatorial Cell Culture(TM) product, known as CombiCult(TM), is a sophisticated method of directing the development of stem cells towards defined tissue types. CombiScreen(TM) is a separate cell-based drug-screening tool to develop small molecule drugs that regenerate cells lost as a result of organ damage or disease.

Dr Choo said: "Conventional methods of directing stem cell development involve a vast series of individual 'trial and error' experiments. The processes we have developed for CombiCult(TM) mean the trial and error stages can be performed in parallel with many thousands of possible combinations and outcomes tested for at the same time. This speeds up the testing process and can generate substantial cost savings for major pharmaceutical firms."

The potential market in the pharmaceutical industry for tissue types grown from stem cells is enormous. When new drugs are developed there is a period of extensive testing for possible dangers or side effects. "A pharmaceutical company might approach us and say that they are developing a new drug that targets a disease of the central nervous system. We can help develop tissue that exactly matches the neurons which the new drug would be targeting, enabling the pharma company to measure the effectiveness of that drug at an early stage" Dr Choo said.

Demonstrating the high regard that the Company has within the scientific community, Plasticell has a number of top internationally renowned scientists as advisers, including two Nobel prize winners. Professor Sir Aaron Krug was awarded the chemistry prize in 1982 and, more recently, Professor Sir Martin Evans won the 2007 Nobel Prize for Physiology or Medicine in recognition of his pioneering work on stem cells.

Plasticell is the second biotechnology start-up that Dr Choo has established. Previously he was founder of Gendaq, an MRC gene regulation company that was ultimately acquired by US biotech Sangamo Biosciences. Dr Choo's expertise in stem cells and their commercialisation is reflected in his recent appointment to the Steering Committee for the UK Stem Cell Bank and for the Use of Stem Cell Lines, the body which oversees all UK stem cell research.

Commenting on the fund-raising process, Dr Choo said: "It was a very pleasant experience working with The Capital Fund. I was particularly impressed with their enthusiasm for the Company and the products we are developing. The financing was completed swiftly on the back of our internal fundraising as we were able to quickly provide the information required under the Fund's due diligence procedures."

Ian Cameron, Investment Director at The Capital Fund, said: "Investing in Plasticell is an exciting opportunity for us. The Company has developed novel intellectual property with significant commercial potential which Yen Choo has the commercial and scientific skills and experience to exploit to the full. The Company has a strong financial footing already - as the recent £440,000 shareholder investment has shown. We look forward to working with Yen and his team, and following the further rapid growth of Plasticell."

NWBIS Invest in Reaxa, the Pharma Catalyst Technologies Company - 26/11/2007

Pharma catalyst technologies company Reaxa has completed second round financing for the next stage of its commercial expansion programme.

Manchester-based company, best known for its EnCat™ range of precious metal catalysts received Venture Capital from the North West Business Investment Scheme managed by YFM Private Equity (YFM), Rising Stars II managed by Enterprise Ventures (EV) and private investors via Reaxa’s corporate finance advisors Acceleris.

The new funds raised will be targeted to expand commercial resources and bulk-scale production of the EnCat™ [polymer encapsulated catalyst] range, which has been trialled by over 250 customers in the two years since the company was formed.

Precious metal catalysis drives the production process for nearly 30% of all new drugs. By combining cleaner, more cost-effective catalysis with reduced process waste and enhanced metal recovery and recycling, Reaxa’s technologies deliver higher process yields, with lower costs and less environmental impact.

Reaxa’s “easier, cleaner, faster” all-scale catalyst and clean-up resin technologies are a twin-track strategy that serves the increasingly tough regulatory, environmental and cost agendas in drug development and commercial scale production.

Beyond new investors EV and YFM Private Equity, Reaxa is owned by a combination Belgium’s Umicore; NPIL Pharma (UK), Prof Steve Ley, the company’s management and private investors.

Scale-up trigger:
“Closing this new funding, alongside our continuing investors, allows scale-up of our catalyst and scavenger products for use in much larger commercial pharma applications”, commented Reaxa CEO Dr. Pete Jackson.

“We now have secured the support to complete the transition from a catalysis R&D company to a commercial scale operator focused on growth. Increased scale for Reaxa means higher volume process intensification for customers with significant cost and environmental impact benefits”.

New Product Development:
Reaxa is also looking to expand its current, 23-product range, with development of nickel and rhodium-based EnCat™ catalysts - and range extensions to its QuadraPure™ and QuadraSil™ metal scavengers.

Jackson notes that continuous flow systems have a major role in future re-engineering for cleaner and faster API production - and that continuing development of clean-up resins for in-line, cartridge-based applications is therefore high on the development agenda, backed up by expertise in Prof Ley’s group at Cambridge University.

Product family:
In the leading product family of EnCat™ encapsulated catalysts, Reaxa has added platinum EnCat™ - Pt(0)EnCat™ 40 – a versatile hydrogenation catalyst and the eighth in the award-winning EnCat™ range.

Recent launches have also included the spherical carbon-based organic scavenger QuadraPure™C – designed to remove ‘small-molecule’ contaminants and impurities from APIs (in particular from large bio-molecules), aqueous solutions and waste streams.

Reaxa now offers 15 scavengers - 11 QuadraPure™ polymer resin-based and four QuadraSil™ silica-supported products, introduced in late 2006. Complementing trends for high-efficiency pharma production, several QuadraPure™ resins are also available in pre-loaded, ready-to-use cartridge format.

The company partnered with distributor Sigma-Aldrich for commercial launch in June of ChemDose® - which simplifies discovery chemistry by providing catalysts and chemical reagents in highly convenient tablet form. ChemDose® evolved from a Reaxa R&D project started two years ago.

The company began trading in mid-2005 after a spin-out from Avecia, which launched the first EnCat™ catalysts in late 2003.

YFM Private Equity Doubles Money Following Sale of RMF Engineering - 21/11/2007

YFM Private Equity has successfully exited from its investment in RMF Engineering making two times money for British Smaller Companies VCT plc.

This is the third realisation in four weeks following a successful 12 months of returns, including the cash multiple return of three times its investment in Oasis Healthcare back in September.

"RMF has demonstrated an ability to successfully adapt to market changes and has delivered good value for all shareholders. This is a great credit to the management, employees and to the region." John Cook, Portfolio Director

RMF was established in 1979 under the name of Reactive Metal Fabricators. When the management buy-out was backed by British Smaller Companies VCT the company changed its name to RMF Engineering.RMF is a manufacturer of corrosion resistant chemical plants, specialising in providing tailor made solutions to problems in the process industry.

From the head office and manufacturing facility near Sheffield, RMF export equipment worldwide. The company has a comprehensive range of major clients in both the UK and overseas, for these clients a complete service in the design and manufacture of specialist equipment is offered to a client's individual requirements, including Middle and Far East, Singapore, Malaysia, China and Russia.

MAS Breathe New Life Into Company - 17/11/2007

The Manufacturing Advisory Service Yorkshire & Humber (MAS Y&H) has worked closely with North Yorkshire based manufacturer, Analox Sensor Technology over the past few years and will continue to provide expert advice to the company as it moves towards achieving its ambitious plans to grow its turnover over the next five years by over 200% from £4.5m to £15m (with £10m of this being achieved organically)

MAS Y&H is a DTI initiative funded by Yorkshire Forward and managed by YFM Business Development, a subsidiary of YFM Group, providing ‘hands on’ advice and support to manufacturing businesses to improve their productivity and efficiency.

Analox specialise in the design and manufacture of gas sensors and analysers. Its slogan ‘we look after the air you breath’ is an excellent description of the products the company supplies to customers world wide, including commercial and sports divers and the beverage and hospitality industry (monitors are a vital part of health and safety in areas such as pub cellars). The business is also NATO approved and supplies equipment for use on nuclear submarines.

The company is part of the Analox Group, which was founded in 1981 by chairman Alan Harbottle, and currently employs 50 people. Earlier this year, Analox moved to new 16,000 sq ft purpose built headquarters at Stokesley which has a new layout designed by MAS. The firm also has a sales office in Los Angeles and exports make up 80% of its sales.
Working with MAS has resulted in many tangible benefits and as Linda Wells, Analox operations director, explained. “We first came into contact with MAS specialist, Andrew Nicholson six years ago. At that time our turnover was £2.5m and we had 35 employees spread across three light industrial units in Stokesley and an office in Seamer. This was far from an ideal situation and we recognised that we needed expert advice to optimise our efficiency and boost turnover.

“With the support of MAS we embarked upon a Lean Manufacturing project, which resulted in our on-time delivery performance improving to nearly 100% and lead time for our main product range was slashed by 30% .”

Earlier this year, Mark Lewis was appointed to the post of managing director of Analox. With valuable input from MAS, Mark and his team set about developing an ambitious five year growth strategy for the business. Mark explained: “MAS has played an integral role in helping us to expand and keep manufacturing in North Yorkshire and we will continue to work with Andrew and his colleagues in the future,” Mark said.

Jim Farmery, Head of Innovation at Yorkshire Forward concludes; “MAS Yorkshire and Humber is one of the most successful MAS services in the UK and this success story demonstrates why. MAS can help companies across all manufacturing industries to become even more efficient, enabling them to be more competitive in the global market.”

YORKSHIRE MANUFACTURING INDUSTRY CELEBRATES - 14/11/2007

Yorkshire and Humber’s relationship with the manufacturing industry may have had its ups and downs over the past 30 years, but last night was a definite high note when the national Manufacturing Advisory Service dinner was held at the Royal Armouries in Leeds – featuring guest speaker Robert Llewellyn, presenter of Scrapheap Challenge.

Held annually around the country, the event brought together over 220 leaders and beneficiaries of the national Manufacturing Advisory Service (MAS), which delivers hands on advice and assistance to support manufacturers across all industries to modernise their operations, helping them to become more productive and competitive.

In Yorkshire & Humber, MAS is delivered by YFM Group and is funded by the Department for Business, Enterprise and Regulatory Reform (BERR) and Yorkshire Forward. Mark Gibson, Director General of BERR attended the event, taking the opportunity to find out more about one of the most successful MAS services in the country.

In this region alone the service has responded to over 13,000 enquiries from businesses since it was launched in April 2002. This work has in turn created over 1000 jobs in the region’s manufacturing industry and helped generate in excess of £126m added value in companies supported.

Simon Hill, Executive Director of Business at Yorkshire Forward comments; “The manufacturing industry is hugely important to the Yorkshire and Humber economy, so it is great that we have been invited to host this national event in the region and showcase what MAS Yorkshire and Humber is achieving.

“What MAS is achieving – by working with manufacturing companies to help them become more competitive, leaner and more in touch with their customer’s demands – is a fantastic example of what Yorkshire Forward is striving for across our region.

“If we truly want to succeed in the global marketplace, we need to build an economy that is diverse and knowledge driven, combining new industries with 21st century versions of our traditional strengths.”

The event in Leeds was sponsored by Yorkshire Bank; Patrick Walton, managing partner comments: “The wealth of the UK economy was generated by the manufacturing industry and we must never loose sight of its importance today and into the future. Yorkshire Bank is delighted and proud to be associated with the Manufacturing Advisory Service and has a strong record of supporting our manufacturing members with our unique business model.”

SOUND MANUFACTURING ADVICE LEADS TO IMPRESSIVE RESULTS - 12/11/2007

When Jane Dawson became managing director of Cleckheaton-based Wakefield Acoustics, specialists in industrial and environmental noise control solutions) she called in the Manufacturing Advisory Service Yorkshire & Humber (MAS Y&H) for expert advice to help accelerate the increase in manufacturing capacity to support rapid sales growth.

MAS Y&H is a DTI initiative funded by Yorkshire Forward and managed by YFM Business Development, a subsidiary of YFM Group, providing ‘hands on’ advice and support to manufacturing businesses to improve productivity and efficiency.
In 2005, after 15 year’s experience of working in engineering at a senior management level, Jane decided the time was right to take on the challenge of running her own business and after a diligent search and with the help of advisers, Grant Thornton, acquired Wakefield Acoustics through her company, Arkanum Management Ltd.
Founded 27 years ago, Wakefield Acoustics now has a multi million pound turnover and employs 30 people. It has built up an international reputation for manufacturing effective noise control products and providing its blue chip clients with solutions for a wide variety of industrial, commercial and environmental applications, both in the UK and worldwide.

As Jane explained: “Bringing MAS in was a vital component to achieving our ambitious targets of increasing manufacturing capacity and sales growth.
MAS advisers Stefan Matykiwicz and Ralph Woodhead carried out a diagnostic review of the business and, based on the findings, recommended changes in three key areas including production planning, introducing new processes across all areas of the business and enrolling the workforce onto training courses such as Lean Manufacturing and team leading skills.
Jane said: “The grant-subsidised consultancy help which MAS has given us to implement improvements to our manufacturing operation has resulted in a 65% increase in sales; and 25% improvement in productivity in year one with further double digit sales and profit growth in year 2. Getting our people behind the changes was critical and they have given us 110% support. The feedback we have had is that they now feel more involved and empowered.”
Jane is now looking to achieve further growth both organically and by acquiring other businesses and has invited MAS to undertake a further grant-subsidised manufacturing improvement project to implement and upgrade Wakefield Acoustics manufacturing systems.

Funding from the Yorkshire & Humber Equity Fund helps to drive success - 09/11/2007

The Yorkshire and Humber Equity Fund (YHEF), the Regional Venture Capital Fund for the Yorkshire and Humber region, has invested a further £200,000 in Harrogate based Williams of Harrogate which trades as Drivestyle. The Drivestyle dealership is renowned as being one of the leading luxury car dealerships in Yorkshire.

The YHEF originally backed Steve Williams, the Managing Director of Drivestyle by investing £250,000 into the business in 2005 to enable the expansion of the Drivestyle business and to assist in the acquisition of Harrogate Horseless Carriages which was the TVR franchise operator for the Yorkshire region.

The further funding from the YHEF has enabled Drivestyle to make significant steps forward in its development by securing two additional franchises for premium sports car marques.

Drivestyle has secured a franchise for Lotus sports cars. Lotus is an iconic British sports car brand and represents a major step forward for the business by providing a complementary offering to the existing TVR franchise. Lotus sports cars are renowned for their engineering and exceptional performance with the current models of the Elise and Exige both being hugely sought after vehicles.

Drivestyle has also secured the franchise for MG cars which is another famous British car brand. The rights to the classic MGF sports car were purchased by the Chinese car manufacturer Nanjing Automobile in July 2005 and the MG TF cars are now being manufactured in the UK with other new models due for sale in the UK in early 2008. The long established reputation of MG as a classic sports car is a further boost for Drivestyle and further evidence of its growing reputation as a leading sports car specialist dealership.

Steve Williams, Managing Director of Drivestyle commented “Securing two high quality franchises such as Lotus ad MG sports cars is a massive coup for the Drivestyle business and is testament to the quality of reputation which has been built up by Drivestyle in the Yorkshire region. The two new franchises are highly complementary to the existing franchise of TVR which means we can now deliver to our customer base quality sports cars at a range of different entry levels and budgets. The business has been considerably strengthened by the new franchises and we have an outstanding opportunity to continue to grow and develop the business.”

Mark Hunter Investment Director for the YHEF commented “With the introduction of the two new franchises for Lotus and MG providing complementary first class sports cars we are pleased to be of continued support to Steve working in partnership for the further growth and development of the company”

YFM Venture Finance provide funding solution to Go-Sim - 09/11/2007

The Yorkshire and Humber Equity Fund (YHEF), the Regional Venture Capital Fund for the Yorkshire and Humber region, has invested £250,000 in York-based GO-SIM – a leading provider of prepaid global SIM cards for mobile phones – after being introduced through Connect Yorkshire.

Chris Fitzsimmons, YHEF investment manager, saw the potential of the product and highly experienced management team. He commented: “With GO-SIM we saw a unique opportunity within the market which we believe will grow substantially in the coming years.”

Following on from the company’s growing success, the management team now has the funding to further develop the product and the GOSIM.com website, increase staff numbers, and roll-out additional marketing campaigns.

GO-SIM Managing Director, David Agar, commenting on the new injection of funding, said: “We have been impressed with both RBS and the YFM Venture Finance’s approach in recognising GO-SIM as a great opportunity, and supporting us in our first round of funding. This new line of funding comes at a good time for the business. We are attracting a lot of interest from new customers and strategic partners in our products, and to meet these large numbers of requests for our services we required additional support.”

GO-SIM has a client base which includes the Foreign Commonwealth Office, British Red Cross, Visa International and the leading US-based retailer, Best Buy. The global SIM supplier plans to role out partnerships with key strategic partners in the travel industry across the world.

Customers face expensive charges when using mobile phones outside the UK due to costly roaming charges. The GO-SIM Global SIM works in more than 140 countries and unlike standard UK network providers, incoming calls and texts are free in many countries, enabling travellers to save up to 85% on the bill that would normally await them.

To use GO-SIM, customers simply swap their existing SIM card with the GO-SIM Global SIM card each time they travel abroad.

Chandos Fund Second Closing Marks Continued Growth of UK�s Most Active Equity Investor - 08/11/2007

YFM Private Equity is delighted to announce the successful second closing of its Chandos Fund at £37 million.

The Chandos Fund was launched in January 2007 as an important addition to the YFM Group portfolio allowing YFM Group to provide equity amounts up to £5m across the UK – a part of the market which is under-served by private equity providers.
YFM Group is the most active investor in UK SMEs and this fund takes total funds under management over £300 million. The Chandos Fund will be drawing on the networks and experience of its investment managers in YFM Group’s offices across the UK including London, Leeds, Manchester and Bristol. The Chandos Fund invests in small fast growing businesses targeting buy-outs, buy-ins, development capital, pre IPO rounds and equity release/partial sales.

Paul Cannings, Director of the Chandos Fund said “We are delighted to have almost reached our target fund size with this second close which has attracted both new investors and increased support from our existing investors. We are continuing to see strong deal flow from the contact base of YFM Group’s national network of offices and we look forward to making more investments in exciting small businesses with excellent management and strong growth prospects.”

The Chandos Fund invests across all sectors with a particular interest in consumer brands, technology and service businesses. Its first 3 investments have been in RMS Europe (port services & stevedoring business), Harvey Jones (a kitchen manufacturer and retailer) and Harris Hill (a niche recruitment business).

MAS HELPS FAST GROWING MANUFACTURER - 18/10/2007

Expert advice from the Manufacturing Advisory Service – Yorkshire & Humber (MAS) has helped FTL Company, a fast growing hose manufacturer based in Leeds to double production capacity and deliver £1.5m of increased sales, fending off stiff competition from China, India and Turkey.

MAS is a BERR Initiative funded by Yorkshire Forward and managed by YFM Business Development, a subsidiary of YFM Group, providing “hands on” advice and support to manufacturing businesses to improve their productivity and efficiency.

A family-owned company established in 1965, FTL manufactures stainless steel hose assemblies for the utilities market. The company is certified to ISO 9001:2000, Rolls Royce: Tier 1 and is currently working towards BS EN ISO 14001. Stephen Reed, managing director of FTL contacted MAS after winning a series of lucrative new contracts from customers in the UK. He quickly realised that the company would need to scale up production, reduce waste and address rising energy costs in order to maintain a competitive advantage and deliver the growth in sales.

Stephen said: “MAS helped us to bring all our production in-house and use lean manufacturing techniques to make our processes more efficient and create a working environment where all employees are involved in the day-to-day running and improvement of the business.
“We have increased production without taking on significant additional labour which is enabling us to keep our manufacturing costs down and deliver superior products which are more competitively priced than those supplied by China, Turkey and India.”
“Thanks to MAS we have been able to save money and satisfy our customers.” FTL is targeting £10m turnover within the next 3 years.

Technology to beat Super-bugs wins major new Funding - 15/10/2007

Scientists at Biocontrol, leading the world in developing new treatments to cure serious antibiotic-resistant infections, have secured a £250,000 investment from The Capital Fund. This is part of a funding round totalling £500,000, with the rest of the funding coming from existing Biocontrol shareholders. Established in 2002, The Capital Fund is a £50 million venture capital fund that backs fast growing small and medium-sized companies in the Greater London area, and is the largest of the nine UK regional venture capital funds.

Biocontrol has already been recognised for its innovation and expertise, recently winning a prestigious Research and Development Grant Award from the London Development Agency.

Set up in 1997, Biocontrol has been developing the clinical use of bacteriophages - literally "eaters of bacteria" - that attack dangerous infection-causing bacteria, especially in hospitals. First discovered in the early 20th century, bacteriophages, or phages, are naturally occurring viruses that attack and destroy harmful bacteria. They are highly specialised, usually attacking only specific strains of a single species of bacteria.

Biocontrol's Chief Scientific Officer, Dr David Harper, said: "The emerging crisis of resistance to antibiotics has led to renewed interest in other methods of controlling bacterial infections. We already have a product to control one type of bacterial infection in clinical trials - phages have real potential to combat many different antibiotic-resistant infections."

Chemical antibiotics have been one of the great medical successes of the past century. But high levels of inappropriate prescribing and over-use of antibiotics in agriculture has led to a rapid and widespread development of drug-resistant bacteria. The problems posed by "superbugs", bacteria that are immune to many regular medical antibiotics, is one that is a major concern for patients, doctors and all health professionals. Such is the ability of the bacteria to develop drug immunity that new antibiotics are in many cases becoming ineffective far more rapidly than drugs can be developed.

As phages attack only very specific bacteria, they can be a far more efficient method of bacterial control than broad-spectrum antibiotics. Dr Harper said: "Phages act like a stiletto, eliminating only the dangerous bacteria. We can identify the bacteria that are causing the disease or infection and target them with phages that will kill those bacteria and only those bacteria. This contrasts favourably with the blunt instrument approach of broad-spectrum antibiotics, which can kill a wide range of bacteria, including those that help the body. This can then leave the body open to other dangerous infections, for example, the emerging superbug C. difficile."

Biocontrol has already successfully completed veterinary trials of its first product - a topically applied phage treatment that controls the Pseudemonas aeruginosa bacteria. Clinical trials with human patients are well underway, with positive initial results.

Dr Harper commented: "The investment from The Capital Fund will support the existing clinical trials and allow us to move forward with development of new products, including aerosol-applied treatments. There is a global need for these new medicines."

Biocontrol's Chairman, Dr Caroline Williams, was closely involved in the funding round. She said: "We are delighted to have secured this funding from The Capital Fund that will allow us to continue developing our product range and maintain our rapid progress. The Capital Fund has invested at a very exciting time in our development and we certainly appreciate the Fund's willingness to support us."

Dr Williams is also chairman of BC Capital, Biocontrol's financial advisors who provided crucial support throughout the funding process.

Ed Simpson, Investment Manager at The Capital Fund, said: "We are delighted to be working with Biocontrol. David Harper's team have developed some amazing products with clearly enormous potential. This investment is particularly pleasing for us as the end benefits, not just for the company and its backers but for millions of patients worldwide, could be very significant. We look forward to following Biocontrol's progress with interest."

UK Equity Gap Fund of the Year 2007 - 08/10/2007

This is another national award for a North West fund.

The North West Business Investment Scheme (NWBIS), managed by YFM Private Equity for the Northwest Regional Development Agency (NWDA), was awarded the Investor Allstars winner of UK Equity Gap Fund of the Year Award 2007. Held on 26 September at the Hilton London, Investor Allstars Awards showcase the very best in the Venture Capital community. NWBIS is an innovative fund designed to offer flexible investment structures for both start ups and more established North West businesses investing European funds alongside private investors.

“This Award is recognition of the quality of the North West’s businesses. We have made 83 investments in 45 companies since the outset bringing together deals worth over £138 million to the region. We would like to thank all those who helped us put those investments together and those that invested alongside us, and, most of all, the companies for performing so well.” says David Hall, Managing Director YFM Private Equity.

teven Broomhead, Chief Executive of the NWDA said: "Our Northwest regional seed and venture capital funds are playing a vital role in enabling our small and growing companies raise the finance they need from private sector investors. We are delighted that the North West Business Investment Scheme has been honoured with the award of Equity Gap Fund of the Year in recognition of its success in working with so many sources of venture capital and business support to bring significant investment to the Northwest for both our new technology companies and our more established growth companies in more traditional sectors .”

This is the second time NWBIS has been recognised for its excellent performance, following on from last year’s success at the North West Business Insider Awards, when it was awarded Fund of the Year

YFM Group takes responsibility for Strathdon - 04/10/2007

The Board of Strathdon plc, an AIM quoted company that invests in early stage technology businesses, has appointed YFM Venture Finance Ltd, an FSA authorised and regulated arm of the YFM Group, to take responsibility for the Company’s management. Strathdon currently has an investment portfolio valued at some £13 million. The initial brief for YFM Venture Finance is to focus on an orderly realisation of the Strathdon investment portfolio maximising financial returns to shareholders.

Strathdon was established in 1997 by founder management and a network of private investors who were successful entrepreneurs and business angels. The Company emerged as an AIM quoted business in 2004 following a merger with INVESCO techMARK Enterprise Trust plc. The Company’s investment vehicle, Strathdon Investments plc, is an “evergreen” fund.

As Andrew Firth, Strathdon’s non-executive Chairman, explains “A number of our investee companies have struggled to translate early promise into downstream value prompting a re-think of how we should run the business. Our conclusion was that out-sourced management would be a more cost-effective solution for our shareholders. The Board held conversations with a number of interested parties and conducted a thorough strategic review and selection process before choosing the YFM Group. We were advised in negotiating terms with YFM Group, by Intelli Corporate Finance.”

Strathdon’s Chief Investment Officer, David Hudson, joins YFM Group as an employee with effect from 20 August 2007. At the same time Strathdon’s Winchester office is closing and the administration staff will be leaving the business. The YFM Group are raking on all the administration and secretarial duties of the Company

At YFM Group Phil Cammerman, Group Development Director, points to the synergies between the two Companies. “We already have well over 200 investee companies on our books here in the UK. Taking responsibility for Strathdon fits neatly with our plans for expanding the YFM Group’s investment and portfolio management reach. With this new contract in place, we now have almost £300 million in funds under management. Our success with another “evergreen” fund, the British Smaller Companies VCT plc, in building the net asset value per share won our YFM Private Equity arm an award last year as VCT Fund Manager of the Year. With the Strathdon deal we hope to emulate that success enhancing returns for shareholders, including a number of institutional shareholders who are new to us.”

“We are delighted that David Hudson is joining us. He will be working closely with staff in our Bristol and Leeds offices.”

COFFEE ROASTERS ENJOY AROMA OF SUCCESS - 19/09/2007

With demand for its products ‘hotting’ up, Brigg-based coffee roasters, Lincoln & York, turned to the Manufacturing Advisory Service Yorkshire & Humber (MAS Y&H) for expert advice, which led to an increase in production and turnover.

Lincoln & York was founded 13 years ago by directors James Sweeting and Simon Herring and currently employs 35 people with a turnover of £6m.

The company, which operates a private label service providing packaged coffee for its customers’ own labels, sources coffee direct from plantations and is also a Fair Trade supplier (this sector of the business has expanded by 60% over the last 18 months.)

With the UK at the forefront of the ‘coffee culture’ explosion in Europe, and future expansion in mind, the company called upon the advice of MAS.

MAS consultant John Scruton of BDG North worked closely with Lincoln & York’s management including undertaking a 10 day factory expansion project with the aim of reorganising the packing lines to make way for an extension to the main factory.

MAS also assisted with the introduction of Lean manufacturing techniques and the design of new packaging which has enabled the company to build teamwork, improve packing line efficiencies and pave the way for innovation in the marketplace.

James Sweeting said: “We have always prided ourselves on our hi-tech efficiency and ability to demonstrate our commitment to continuous improvement has been a major selling point. MAS has been very useful to us and the results of this project were immediate, both in terms of productivity and improvements to the working environment. Overall people productivity has markedly improved and our turnover is up by 15% on the previous year.”