YFM Group News Feed

3.7x return on sale of investment in Sheet Piling - 09/04/2010

YFM Private Equity’s support for Preston-based construction business Sheet Piling shows that quality UK small businesses can deliver returns and growth whatever the sector.

Challenging Perceived Wisdom?
There is rightly much discussion about the UK’s small businesses being at the forefront of the drive out of recession in to economic growth. The most recent realisation of an investment that supported the buy-out of a North West construction business by its management team from its parent at the height of the dot.com boom and sold nine years later near the bottom of the economic cycle makes an interesting case study.

The return
YFM Private Equity managed British Smaller Companies VCT plc has successfully made a 3.7x return (20.17% IRR) following the sale of its shareholding in driven steel piling contractors Sheet Piling. The company was sold back to the management team 9 years after the initial investment.

The story
In 2001 when the first investment took place, it was the height of the ‘dot com’ boom. Businesses were veering away from the traditional business model and private equity had, in the main, turned its back on investing in conventional industries dismissing them as ‘old economy’ companies.

The opportunity to back Sheet Piling was presented to YFM against this background and at a point in the economic cycle when anything not related to online activities was deemed as ‘unfashionable’. YFM saw the potential in the way that management had developed the business under Plc owners and were prepared to take the contra view. Nine years on this decision proved to be the right one as the company generated excellent returns. A strong investor knows what to look for and isn’t swayed by what is deemed to be ‘fashionable’. YFM saw the opportunity to back a strong and highly innovative management team in a steady sector which managed to perform well despite being deemed as unsexy.

The management team’s aim was to become the leading provider of specialist forms of driven steel piling, dock and harbour works and canal/river bank protection schemes.

The business developed over the years, “Over the time of our investment the business has grown rapidly to establish a strong market position and delivered significant levels of profit.” Says David Gee, YFM Private Equity

Sheet Piling is now one of the market leaders in the Driven Steel Piling industry. Operating throughout the UK they have been involved in many of the country&39;s major construction projects. Clients include Asda, Balfour Beatty and Persimmons Homes. Sheet Piling specialise in developing innovative solutions for both temporary and permanent works schemes, frequently in partnership or close liaison with Clients, Developers and Principle Contractors.

“We have enjoyed a good relationship with the management team who have delivered on their original ambitious plans. Although we have chosen to now realise the value of our shares we would like to wish the team every success.” Says David Bell, YFM Private Equity

What lessons can we take from this?
Well run small businesses can drive growth in any sector. Backing the right team at the right point in the cycle either near the bottom or in this case when the sector was out of favour can deliver excellent financial and economic returns. Not following the crowd can be a rewarding endeavour.

YFM seal a great new deal with a Fresh approach - 09/04/2010

YFM Private Equity through the NWDA’s North West Interim Venture Capital Fund has helped to close the first round investment of £600,000 for the North West based business FreshTL. This round was a co-investment with Greener House Investments plc and is the first investment from the fund.

FreshTL operates in the rapidly growing “cloud computing” sector, has created a unique new capability by combining software platforms from the global software giant IBM along with an offering from Bricsys, a Belgian software company. This has created significant market interest from its technology partners as well as potential customers.

The funding from YFM will assist FreshTL to move its operations to the North West Development Agency backed Daresbury Science & Innovation Campus.

"We are thrilled and delighted with the closing of the first round of investment. It will allow us to develop the business and establish a foothold in the growing Cloud Computing market." John McGuire, Chief Executive of FreshTL

John McGuire, Chief Executive and Stephen Blank, Finance Director of FreshTL will be joined on the Board by Derek Lewis as Non-Executive Chairman.

Ian Waterfield, Investment Manager of YFM said, "We are delighted to be supporting John McGuire and his team at FreshTL to exploit this exciting growth sector.”

YFM Funds back US acquisition - 11/02/2010

Following its backing of the management buyout of Fishawack Communications two years ago, funds managed by YFM Private Equity (Chandos Fund and British Smaller Companies VCT) have invested follow-on funding to support the acquisition of Nexus Communications, a Philadelphia based medical communications agency.

Based in Knutsford, Abingdon and Philadelphia, Fishawack is a specialist medical communications agency with a reputation for providing high quality support services to its clients, which include, GlaxoSmithKline Biologicals, Pfizer, Bayer Schering and CSL Behring.

Commenting on the acquisition, Oliver Dennis, principal founder of Fishawack Communications, said “This is the logical next step for both businesses and gives Fishawack a strategically vital presence in the USA that will better equip the company to support its US-based clients.”

Michael White, Investment Director at YFM Private Equity, said “This is the first step in a buy-and-build strategy that we hope will see the Fishawack Group of Companies expand to become the leading independent medical communications agency in the UK.”

NWDA awards North West Venture Fund to YFM / MTI consortium - 20/01/2010

YFM Private Equity, part of the YFM Group, the most active investor in UK SMEs, and MTI, the technology venture capital investor, are delighted to announce that the Northwest Regional Development Agency (NWDA) has awarded them a fund management mandate for the North West region. The YFM/MTI consortium will deliver and manage the interim Venture Capital Fund, announced by the NWDA in the Summer, designed to provide investment capital to growing SMEs, which is part of the NWDA’s continuing commitment to the support of enterprise in the region.

The Fund is available now to North West based SMEs:

- at all stages of their development
- to fund a wide range of growth opportunities
- and providing £250,000 to £1m of equity based investment.

YFM Private Equity’s North West team have, over the last 6 years, delivered and managed the highly successful North West Business Investment Scheme (NWBIS). NWBIS was recently independently assessed and found to be the best performing fund of its type in the UK.

It has also been recognized as Fund of the Year 2009 at the North West Business Insider’s Dealmakers of the Year Awards. Since the Fund’s launch, NWBIS has made 11 successful realisations, created almost £500m in wealth for the region and attracted over £235m of co-investment.

YFM Private Equity has made 15 investments across the North West in deals worth over £28 million over the last year.

MTI has made over 14 equity commitments to the region over the last 15 months through its management of the £32m UMIP Premier Fund, which is focused on deals emerging from the University of Manchester, and also deals in the wider North West region.

Together this consortium represents the most successful and active equity investment group in the North West.

David Hall, Managing Director of YFM Private Equity said: “We are delighted to be awarded the much anticipated venture capital funding, This will allow the team to continue to provide support to the region’s innovative and diverse businesses. We look forward to working alongside MTI, maintaining our success at adding value, creating wealth and making a measurable impact on the region’s economy.”

Richard Henderson, Partner of MTI, said:“We see this NWDA initiative as a much needed addition to the range of equity support provided to the region’s entrepreneurs. The North West has many SMEs who can use this support and in the process build themselves into tomorrow’s winners. MTI is delighted to be part of this process.”

Said a spokesman from NWDA, “ A critical element of the NWDA’s finance portfolio is the new long term Venture Capital and Loan Fund which is currently in development. It has taken longer than anticipated but the Agency has now adopted a new structure and agreed, with Government, to progress this fund for the Northwest.

The NWDA aim to announce more details as soon possible but in the meantime YFM will manage a sufficient interim VC pot, that will last until Spring 2010, to ensure there is no gap in public sector VC funding in the interim.

The new agreed model for VCLF is taking shape behind the scenes with the Holding Company now established and members appointed. Invitations to tender will be issued during December and interviews with Fund Managers will take place early in the New Year. The NWDA will be appointing 4 or 5 fund managers under the new agreed model and aims to have the long term funds operational and ready for applications from late Spring.”

YFM has announced the opening of its Liverpool office. Based at The Plaza, Old Hall Street, in the heart of Liverpool’s resurgent finance community, the location is an important addition to the strong UK-wide network.

Businesses looking for equity finance in the area or indeed across the wider North West region should contact Simon Cleaver on the details below, or any of the rest of the team in Manchester on 0161 832 7603.

YFM Private Equity
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

t: 0151 600 5134

Yorkshire based software company keeps IT systems on track with second round investment from YFM - 13/01/2010

Businesses can now achieve and maintain the best possible state and configuration of IT systems enabling uninterrupted delivery of business services.

This state of the art solution, developed by Yorkshire based New Net Technologies (NNT), is fast becoming a world leader in the field of Performance, Change & Configuration Management as a growing list of customers around the world will attest. NNT’s flagship solution ‘Change Tracker Enterprise’ is a solution for enterprise wide compliance, change, configuration, health and performance management of IT systems.

The solution covers PC’s, servers and the network infrastructure.

With NNT Change Tracker Enterprise businesses and organisations are first able to establish a ‘baseline’ for the best possible configuration and state for all IT devices. Once this is done, Change Tracker Enterprise will track any change to the approved baseline and unauthorized or poorly executed changes will be flagged immediately with the option of quickly remediating to a ‘known, working & compliant state’.

YFM Group managed Yorkshire & Humber Equity Fund (YHEF) alongside the NNT management team have invested an additional £120k to support the completion and marketing of the next version of NNT Change Tracker Enterprise, which will include a comprehensive ‘compliance reporting engine’ to enable customers to achieve and maintain compliance for mission critical standards.

Operating in the medium to large enterprise market, NNT’s software is designed to be the most competitive and easy to use on the market, providing cost effective solutions which can be used alongside existing software investments. As businesses expand and IT support is a greater burden, the NNT solution presents a cost saving opportunity for business owners looking to lower OpEx while speeding up IT delivery.

Mark Kerrison CEO at NNT feels that the additional funding, allowing the completion of the new compliance engine for Change Tracker, gives the company massive competitive edge.

“In today’s market you have to add immediate value and you have to be cost effective. The days of customers spending vast sums of money on exhaustive and mostly underused high end branded solutions should be over. For a moderate investment, Change Tracker is the most complete solution and best value for money. It is a pragmatic and affordable alternative to buying separate compliance audit, network change and configuration management, ‘software & hardware’ inventory management, and patch and image deployment products. Our solution costs less than the main brand alternatives and does much more than traditional network change and configuration management systems.”

Ian Waterfield, Investment Manager at YFM, led the original investment in NNT and has been working with the Company on its growth plan.

“NNT has grown sales in a difficult market, testament to the commitment of the management team and the strength of the proposition. The further investment will allow NNT to continue to improve its product and provide a cost effective solution to an increasing number of customers with compliance requirements.”

YFM Funds back £3.5 million high security MBI - 21/12/2009

Funds managed by YFM Group, Chandos Fund, British Smaller Companies VCT and British Smaller Technology Companies VCT2, have completed the £3.5 million MBI of Deep-Secure Limited.

An encouraging end to another challenging but successful year, as funds managed by YFM Group invest in deals worth £49 million over the last 12 months.

Based in Reading, Deep-Secure’s market leading products protect against threats to security via high defence network border gateway technology, which enables customers to maintain network separation and apply content inspection so as to defend sensitive and protected information from intruders. The all equity deal will enable further technological development of their cutting edge products.

As working practices change and more information is shared electronically, increasing levels of exposure to leakage and attack demands more businesses rely on higher levels of security to protect their data.

Serial software entrepreneur Richard Beaton, Chairman, and Kieron Sambrook-Smith, CEO, previously worked together at Boldon James. This is the third investment YFM has completed involving Richard Beaton following the success of North West based businesses Intuita and Tekton Group.

“We are delighted to be working with Richard again.” says Nigel Barraclough, Investment Director YFM, “His expertise, acumen and attitude provide the grounds for a great working relationship whenever we work together. Deep-Secure is going to be an interesting and exciting company to work with, the future developments will see ground-breaking technology reach highly sensitive markets, changing the way companies defend their intelligence.”

Richard says “During my last two ventures I developed a strong relationship with YFM. Both parties have a mutual understanding of how and where we see the business propositions going, even when times get incredibly tough YFM can still be relied upon and I hope to work with them again in the future.”

Kieron says “ In today’s fast changing global security environment, this area of ‘secure information exchange’ is of increasingly high priority to commercial organisations, government agencies and nations spanning disparate geographies with requirements to connect previously isolated networks that facilitate the sharing of highly sensitive data. Our market leading position as provider of highly Assured technology in this area, tested and validated to government security agency standards (Common Criteria Evaluated Application Level 4) in 34 countries enables us to invest significantly in evolving this capability beyond applications such as email, web traffic and instant messaging to other forms of communication”

In 2009 funds managed by YFM Group completed 74 investments in deals worth £49m across the UK.

Double Award Win for YFM - 16/11/2009

YFM managed North West Business Investment Scheme (NWBIS) and DxS one of its investments both picked up awards at last Thursday&39;s North West Insider Dealmakers awards.

Held at Manchester Central, NWBIS was named FUND OF THE YEAR and DxS (where NWBIS invested alongside NVM and others including YFM managed British Smaller Technology Companies VCT2) won TECHNOLOGY DEAL OF THE YEAR following its recent successful exit to Qiagen. The awards were voted for by the professional community, recognising the achievements of outstanding companies throughout the region.

NWBIS
YFM Private Equity has managed NWBIS for six years and this is its second North West Fund of the Year award in addition to the accolade of being UK Equity Gap Fund of the Year in 2007. During this time the Fund has invested in over 58 companies across the North West in deals worth £235 million.The Fund was recently assessed as the best performing fund of its type in the UK. So far almost £500 million has been created and generated in wealth for the region. Over £235 million of co-investment has been brought to the region, 796 jobs have been created and £129 million in sales produced.

DxS
In September Manchester based personalised medicine company DXS was sold to international sample and assay technology giant Qiagen. The value of the business has increased 11 fold since the initial investment by NWBIS. The first investment took place in 2004, the early stage biotechnology business had 13 staff, operated in the North West and had sales in the region of £400k. On exit the company employed 80 staff, has operations across the USA and forecasts sales of £20 million.

YFM Private Equity has made investments in 14 companies in the North West in deals worth £29 million over the last 12 months.

“These awards are a fantastic accolade, recognising of one of the most committed investment teams in the UK, with a passion for not only the businesses they work with but also for the impact the funding can bring to the region. As always the event was a great night, marking the end of a challenging but triumphant year. Over the last 12 months we saw one of the busiest investment periods at the close of 2008, two successful exits and the realisation of over 50% of the original capital invested by the fund returned to the NWDA.

We look forward to the challenges of 2010 and being able to continue to support the innovative and growing businesses that this region produces” said David Hall, Managing Director YFM Private Equity

All power to regional businesses as they deliver 6 realisations in 3 months 10x capital - 12/10/2009

ALL POWER TO REGIONAL BUSINESSESAS THEY DELIVER 6 REALISATIONS IN 3 MONTHS 10X CAPITAL

We’re not sure about green shoots but what a three months for regional businesses at the forefront of UK growth.

“When YFM first backed them, these six businesses had a combined market value of £40m, employed 500 people and had a UK only customer base. Now they are worth in excess of £900 million, employ over 2,500 people and operate all over the world. It has been incredibly rewarding to work with such diverse successful businesses. They have innovated, developed and adapted their products, services and businesses achieving transformational growth.” says David Hall, Managing Director YFM Private Equity.

YFM Group invests in SMEs at their most challenging and exciting stages of development. These innovative businesses then go on to become some of the most successful and stable businesses in their sector.

The six businesses in question are all outstanding examples of this. DXS, Nanoco, Hargreaves, Byotrol, Art Technology Group and Provexis were all early stage investments backed by YFM Group managed funds between 2003 and 2005. All but Hargreaves are innovative technology companies, demonstrating the high growth and strong performance of their products, services and management team.

Provexis discovers, develops and licenses scientifically-proven technologies for the global functional food, medical food and dietary supplement sectors.

Start-up nano-technology company Nanoco floated on AIM in April 2009 at a market capitalisation in excess of £35m, the share price has since increased significantly since the listing.

Manchester based personalised medicine company DXS was sold to international sample and assay technology giant Qiagen. The value of the business had increased 11 fold since the initial investment by YFM managed North West Business Investment Scheme and British Smaller Technology Companies VCT2.

Byotrol has seen sales grow thanks to the increasing awareness of swine flu prevention. The manufacturer of anti-bacterial chemicals used in the fight against super bugs has seen sales increase from £200,000 to £1.5m in the last six months.

Mineral resource management company Hargreaves employs over 2,200 staff and with turnover in excess of £400m, they are a perfect example of a company growing both organically and via acquisition.

Art Technology Group is the premier provider of personalised cross-channel commerce software and services, working with more than 900 of the world&39;s leading brands.

David Hall says “YFM Group works with hundreds of entrepreneurs each year. We are in a privileged position of seeing the knock-on effect of such success, as the local and national economy benefits from the creation of jobs, inward investment to the region and increases in sales and wealth.”

In the last 12 months YFM Group has made investments into 95 companies across the UK worth £110m.

11x returned on sale of DXS - 25/09/2009

Manchester based personalised medicine company DXS has been sold to international sample and assay technology giant Qiagen. The value of the business has increased 11 fold since the initial investment by YFM managed North West Business Investment Scheme and British Smaller Technology Companies VCT2.

The first investment took place in 2004, the early stage biotechnology business had 13 staff, operated in the North West and had sales in the region of £400k. Today the company employs 80 staff, has operations across the USA and forecasts sales of £20m.

DXS offers products, technology and services to the healthcare industry, enabling the delivery of safe and effective medicines.

The sale is further evidence of the high quality biotechnology, healthcare and software industry which employees over 20,000 across the North West of England.

The new owners are firmly committed to research and development in the region and see the purchase of DXS as an opportunity to expand and develop their products and services even further.

"It has been an exceptional few years for the team at DXS, last year they won the Bionow Biomedical Company of the Year award 2008. DXS was identified for its commercial achievements including the launch of the first anti-cancer drug combination with a major pharmaceutical company. Recent contract wins with major players such as Amgen have been pivotal in the personalised medicine revolution taking place. It has been a pleasure to work with the team over the last 5 years, all at YFM wish him and the company the best of luck as they approach another fascinating avenue on their journey." commented Doug Stellman, Investment Director NWBIS

YFM Group, the most active investor in UK SMEs, has announced the appointment of David Bell as YFM Private Equity�s Portfolio Director. - 18/08/2009

YFM Group, the most active investor in UK SMEs, has announced the appointment of David Bell as YFM Private Equity’s Portfolio Director.

David will be responsible for portfolio management functions within YFM Private Equity including taking on the management of a direct portfolio of higher value assets. He will join the board of YFM Private Equity Limited. David led and supported new investments on behalf of 3i into start-up ventures, management buyouts and growth capital opportunities before working as Portfolio Director within 3i’s legacy UK portfolio team. As a member of the management team he managed a direct portfolio of higher-value assets within the midlands and led a national initiative to drive returns from underperforming assets. He has directly managed more than 40 successful exits, generating over £100m of cash.Before joining 3i David worked as a management consultant at Miebach Logistics for 5 years, specialising in supply chain strategy. He managed projects across Europe and North America, spending a year based in Detroit, prior to that he studied Mathematics at Imperial College London and then Cambridge University.

David Hall says “the YFM Group portfolio is one of the largest in the UK, the success of these businesses has been due to the excellent management backing the right teams, supporting them through to a successful exit. David’s background and track record are the right fit for our ever growing portfolio of innovative SMEs. We are delighted to have him join the company and look forward to drawing from his experience as the portfolio expands and develops.”

David Bell commented “The move to YFM presented the opportunity to get involved with a huge variety of deals at possibly one of the most interesting times in recent years. I have considerable experience of re-aligning the interests of institutional investors with good management teams behind clear strategies to create and realise shareholder value, which will be a real asset to the business. I believe the YFM business model of backing strong management in growing UK businesses not only generates excellent returns for the shareholders of our funds, but will also make a material contribution to the recovery of the UK economy.”

YFM Group funds under management continue to back fast growing SMEs across the UK, in the last 12 months 100 companies received funding from YFM Group, the deals were worth more than £105m.

YFM Group the UK Small/Mid Size Private Equity Firm of the Year 2009 - 28/05/2009

"This is a tremendous achievement, the awards are voted for by the industry in recognition of those who have made the biggest impact in the last year. Particular thank you to all of the business and advisers we have worked with over the years" David Hall

134 deals in 105 UK companies*
£32m invested by YFM funds in deals worth over £132m*
a huge number of jobs saved, created and value added

There were a number of highly successful exits, including the £70m sale of Cumbrian Wind Farm Eclipse Energy, the 33m sale of Sarian to US firm Digi International and £21m sale of Manchester based Tekton to Sage (UK) ltd.

Working with over 100 successful and driven entrepreneurs and business owners each year has provided the investment teams with a wealth of knowledge, experience and contacts to utilise as they continue to back SMEs throughout the UK.

YFM Group manages in excess of £310 million, providing investment to SMEs of up to £8 million.

*the number and size of deals completed in the 12 months to April 2009

British Smaller Companies VCT wins 'Best Accounts and Reports' award 2009 - 19/05/2009

British Smaller Companies VCT plc was presented with the award for the Best Shareholder Communication for the VCT Reports and Accounts by the Association of Investment Companies AIC in May 2009.

This is another tremendous accolade for the company as we are again recognised by the industry for our hard work and commitment.

The cover was fantastic on this report: judges thought it perfectly captured the nature of VCTs. This report had a clear message and a very thorough and enjoyable list and explanation of investee companies as well as a description of the value added by venture capital.

"While it is now so much easier to communicate with shareholders across a range of mediums, communicating effectively is still a skill that requires real commitment and time.

There is still a marked difference between producing information that is a legal requirement, and those who go above and beyond what is required when it comes to communicating with shareholders" Daniel Godfrey, Director General of AIC.

British Smaller Companies VCT wins Best Shareholder Communication Award - 14/05/2009

lt pgt British Smaller Companies VCT plc was presented with the award for thenbsp 39 Best Shareholder Communication for the VCT Reports and Accounts39 by the Association of Investment Companies AIC in May 2009.lt /pgt lt pgt This is another tremendous accolade for the company as we are again recognised by the industry for our hard work and commitment. lt /pgt lt pgt The cover was fantastic on this report: judges thought it perfectly captured the nature of VCTs. This report had a clear message and a very thorough and enjoyable list and explanation of investee companies as well as a description of the value added by venture capital.lt /pgt lt pgt nbsp quot While it is now so much easier to communicate with shareholders across a range of mediums, communicating effectively is still a skill that requires real commitment and time.lt /pgt lt pgt There is still a marked difference between producing information that is a legal requirement, and those who go above and beyond what is required when it comes to communicating with shareholdersquot Daniel Godfrey, Director Generalnbsp of AIC.lt /pgt

NWBIS combines with specialist investor seeking innovative energy related investments - 24/04/2009

North West Business Investment Scheme (NWBIS), managed by YFM Private Equity, has recently completed a significant investment into Chester based EA Technology Ventures, part of the EA Technology Group, one of the World’s Leading Power Asset Management Companies with a world-class reputation for delivering innovative business solutions to companies which supply, distribute and use energy.
EA Technology was set up in the 1960’s as the R&D centre for the UK electricity industry. It is now independent and has 140 employees in the business with unrivalled technical and scientific experience in its sector. Its customers operate across a spectrum of industries, notably the electricity, rail and industrial sectors.

EA Technology Ventures has been established as a vehicle to seek out, invest in and work with new ventures across a wide range of traditional and emerging energy related sectors, including energy efficiency, smart grid and new energy distribution and storage technologies.
The funding will allow EA Technology Ventures to fund the commercialisation of a portfolio of opportunities including innovative systems that can help reduce the nation’s dependence on coal-generated power and state-of-the-art electrical protection devices.

Robert Davis, CEO of EA Technology said: “The development of EA Technology Ventures gives EA Technology the opportunity to release the pockets of ideas we currently hold, but have not previously had the resources to commercialise.
“EA Technology Ventures opens up opportunities to develop innovative and revolutionary products, taking them past the proof of concept stage and into the mainstream market. It will provide an opportunity to get off the ground some of the most exciting new ideas in energy-related products and services.”

George Lilley, managing director of EA Technology Ventures, said: “We already have a number of interesting projects ready for commercial development.
“As well as taking these opportunities forward, we intend to reach out to the inventor community to continue to unlock new ideas that might be in the early stages of development and offer the necessary financial and business support to shape them for commercial launch.”

Doug Stellman, Investment Director, NWBIS says “ EA Technology Ventures is an innovative idea to identify new businesses in an emerging market. The innovators behind such smart technology will have direct access and support from the market leader in developments in this sector. YFM Private Equity and the North West Business Investment Scheme are delighted to be working alongside the providers of such support.”

The whole energy supply and management sector is forecast to grow. The need to improve the effectiveness and flexibility of energy distribution, as well introduce more conservation measures to cope with expected changes in consumer and industrial demands, while reducing overall energy consumption is a priority.
Working with the new ventures EA Technology Ventures, along with YFM, will seek to identify technical expertise from within the EA Technology Group to validate the new ventures and identify the best possible routes to market, and bring these businesses from post-proof of concept to full commercialisation. EA Technology Ventures has a good track record of securing additional industry funding which when invested alongside their own monies will provide entrepreneurs with the resources to take their concepts to market.

Latest portfolio developments from the North West - 15/03/2009

Support from the start

We are always delighted to see businesses succeeding at a time when unfortunately so many others are struggling. It is even more of delight when some of the key developments in the region are part of the North West Business Investment Scheme's portfolio.

Below we have highlighted Tepnel Life Sciences, Epistem and Nanoco, all of which have worked with NWBIS for a number of years. Each started life as a university spin-out, receiving funding at an early stage, and have significantly developed and grown with the support of those who backed them.

Over the coming months we will continue to back businesses from the emerging as well as traditional economy, support our existing portfolio and celebrate the successes which have a real impact on the region such as Nanoco. The return to date from Nanoco would allow 20x the original investment to be re-invested in the region

Epistem research deal

Epistem the AIM quoted stem-cell biotechnology company recently signed a multi-million pound contract with Novartis to fund research and development for the next two years. Following the announcement the market cap of the business rose to over £18m. Epistem will receive payments on completion of the targets set and also receive royalties on worldwide sales for any leads that are commercialised.

"The NWBIS was delighted to invest in Epistem in 2005 when it was still at an early stage. We are delighted to see the progress made by the company since it floated. This contract is a huge boost, the team deserve the recognition and success which will accompany this partnership the sector that the business operates in is a key emerging technology" Simon Cleaver, Investment Director.

Nanoco AIM Quote - 20x return so far...

Despite the wider stockmarket woes, Nanoco a Manchester University spin-out company that the NWBIS and other regional investors backed at seed funding stage has announced a reverse takeover of AIM-listed cash shell Evolutec, in a move that potentially values the combined group at over £40m. To date the return to NWBIS is 20 x the original investment and counting. Nanoco is developing and manufacturing semi-conducting materials called quantum dots, with widespread application solid-state lighting (LEDS), solar cells, and next-generation flat screen displays and biomedical applications.

“YFM are delighted to see this classic university spin-out rise from a speculative seed investment working from a renovated toilet (!) to a market listed company in state of the art facilities dealing with blue chip customers. Their products address a wide range of emerging product sectors with excellent export potential as well as potentially giving a UK based source for innovative UK companies to develop new products too. We congratulate the management team that have driven this business forward since the seed funding, value has been a key focus and has grown strongly” Doug Stellman, Investment Director.

Tepnel – a North West success

Another NWBIS investee has announced a recommended £92.8m offer made by US diagnostics firm Gen-Probe, valuing the business at a significant premium to the prevailing share price. The NWBIS invested in Tepnel Life Sciences, the Manchester-based biotechnology company, as part of the funding for a strategic change of direction in 2003 since when sales and profits have grown significantly. Tepnel reported a pre-tax profit of £2.78m in the year to December 31, a 119 per cent increase on the previous year.

And finally DxS - in the news again

The Manchester Evening News carried several pieces on DxS over the course of a few days. Two YFM managed funds are invested in DxS, the NWBIS and the British Smaller Technology Companies VCT 2 plc.

“DxS expects to see sales rocket to more than £10m over the next 12 months after a string of global distribution deals," Stephen Little,DXS

The company supplies diagnostics kits used by doctors to help them prescribe more effective treatments for lung and colon cancer patients.

DXS has established a global presence following a series of deals, including an agreement with industry giant Roche late last summer. Following its success, the team intend to recruit a further 20 scientists and support staff this year to complement the work of its 60 existing employees.

DxS also plans to launch a range of diagnostic kits to help with the treatment of breast cancer over the next two years.

XL-ent Recognition for Backing the Region's Small Businesses - 26/02/2009

When Business XL magazine arrived it was interesting reading through the UK's Power Top 50 list, those who made the top, and those who had fallen from the radar - it was even more interesting when number 9 listed YFM Private Equity's north west -based David Hall.

The publication has ranked him amongst one of the UK's key players on the growth company scene.

Business XL's recognition follows on from previous years' successes when YFM Private Equity was named the UK's Venture Capital Trust Manager of the Year, the same year the NWDA backed North West Business Investment Scheme was named UK Equity Gap Fund of the Year.

It is always good for the region to be recognised for its achievements at a national level. It is doubly satisfying that this recognition is as much about the success achieved by the region's small and medium sized businesses, measured by their wealth generation, job and sales creation as it is about north west based funds delivering performance right at the top of the national tree.

YFM Group backs a new generation of golf analysis programme - 01/12/2008

YFM Group managed Yorkshire & Humber Equity Fund (YHEF) has invested £202,500 in Break30, a Sheffield based company that has developed PUTTLAB, an analysis programme that has already been proven to increase the putting skills of professional golfers.

PUTTLAB uses ultrasonic technology derived from the medical industry to map the putting swing in extremely fine detail. The data is then analysed using motion capture software to build a training programme that has been developed over 15 years of academic research in Germany.

The product has already been adopted by Tiger Woods and proven with the top100 golf coaches, and Break30 is now an Education Partner for the Professional Golfers Associations of Europe. With backing from YHEF the Company now plans to work with the European and Global PGA’s to develop structured training programmes around the world for both professional and amateur golfers.

As well as the major organisations, BREAK30 is also rolling out PUTTLAB to golf centres and golf clubs as players seek to improve their putting, having already worked on their driving with the wide range of devices available today.

Following a grant from Yorkshire Forward the management team realised they needed a larger investment to take their product to the next stage of development. YHEF saw the opportunity to back a well established and experienced management team who have created a product which is the first of its type in what is a significant untapped market.

Chris Fitzsimmons led the deal on behalf of YHEF, he says: “BREAK30 and PUTTLAB are focusing on a new and exciting segment of the golf market. Their progress to date has been impressive and with our funding we believe that they will quickly grow to become the leading putting training aid based on their scientific approach to improving a players putting style.”

BREAK30 employs five staff, the funding will help increase their market share nationally and internationally as the technology develops.

“Putting is often referred to as a “Game with a Game”. Although much is known about the full swing, Putting has lacked a robust and pragmatic approach for the Coach or the estimated 10 million avid golfers wanting to improve. With the average golfer taking more than 40 putts per round, the Break30 solution identifies a significant gap in this massive untapped audience. YFM Group were quick to recognise the opportunity and provide the essential funding that will enable Break30 to make important steps to develop the technology and international markets.” Says Nick Middleton of BREAK30.

YFM Backs Digital Healthcare in �2.6m deal - 30/11/2008

YFM Group managed British Smaller Technology Companies VCT2, has provided Digital Healthcare with £510,000 as part of a £2.6m round, to fund expansion of its core products and services in its existing markets and to broaden the Company’s International presence.

A consortium of backers including Alliance Trust, who led the deal, Noble Group, and Paris-based Elaia Partners joined in the round. The Company has raised nearly £7.2 million to date.

Mike White, Investment Director YFM Group says “As the original backers of Digital Healthcare, YFM has seen the business develop to become the leading provider of diabetic screening software to the National Health Service. Following its success in the UK, the company is now rapidly building a position in the emerging and much larger US diabetic retinopathy screening market. With a world class management team and software to match, we are confident that Digital Healthcare has a very bright future ahead.”

John Morrison, Director of Alliance Trust Equity Partners, commented “The problems that Digital Healthcare’s products address are clearly global ones, we’re looking for the company to grow and develop and become a Major International player.”
Cambridge based Digital Healthcare provides software and related services for very large scale population eye screening and technology to manage information and images in clinical ophthalmology. In the UK care of over 1 million diabetic patients is managed using Digital Healthcare’s OptoMize product with 39 regional Diabetic Retinal Screening Schemes providing screening to their patient populations to detect early and previously undiagnosed signs of diabetic retinopathy and other causes of blindness.
In the US the Company’s Retasure service to detect signs of retinopathy in diabetic patients is used by nearly 900 physicians in 19 states. Digital Healthcare’s OcuLab product is used by some of the World’s leading Ophthalmology Departments, including The Wilmer Institute in Baltimore MD, to integrate clinical instruments and distribute information across their institutions.

Digital Healthcare’s award winning products are built on Microsoft’s .Net and SQL Server technologies delivering powerful, scalable functionality in a secure and future proof environment.
This additional funding from the existing investors will allow Digital Healthcare to capitalize on its core product functionality and platform flexibility to position itself for the delivery of services used in the screening and diagnosis of other major conditions.

Mike O’Leary, Chairman of Digital Healthcare, commented “The Company’s success to date in developing functionally rich software solutions based on leading edge Microsoft technology has been proven by the many implementations that we have. This additional investment will allow us to grow and develop into other territories and sectors of the healthcare market internationally”

IT software helps businesses cut costs following investment from YFM Group - 17/11/2008

Businesses can now pinpoint the route cause of IT system failures at a press of a button thanks to the software created by Otley based New Net Technologies (NNT).

YFM Group managed Yorkshire and Humber Equity Fund (YHEF) has invested £250,000 in the software company to fund its expansion plans.

The Performance, Change & Configuration Management software detects and tracks all changes in IT systems from the PC to the Data Centre and everything in between; highlighting authorised versus unauthorised changes along the way. This allows IT teams to set a ‘baseline’ of the normal, known and compliant state for their entire IT estate and where necessary roll back any system changes that may affect the normal functioning and or quality of service. In addition a unique system provides the option for users to self diagnose issues without the need of an IT helpdesk engineer, thus reducing the cost and burden placed on IT staff.

Operating in the medium to large sized enterprise market NNT’s software is one of the most competitive & easy to use in its market, providing cost effective solutions which can be used alongside existing software tools. As businesses expand and IT support is taking a greater burden, the software presents a cost saving opportunity for the business owners looking to make cut backs and to speed up IT delivery.

Phil Snell, Technical Director founded the business in 2005, after more than 30 years experience in building innovative software and software companies. In 2008 Mark Kerrison joined the company as CEO having previously worked in various senior roles for a number of IT and Software companies.

The funding will allow NNT to build a field sales force, building partnerships and increasing the existing customer base. To date the business had established an impressive portfolio of customers having only been in the market for 6 months, including National Grid, Hutchison Ports, 3 Valleys Water, Cable & Wireless and ACAS.

“We have backed an experienced and well connected management team who have produced an innovative product and have demonstrated a strong ability to create and grow sales. In the current economic climate businesses are looking to cut costs, NNT’s software is now in demand as it meets the need of the current business market where people are looking to realign their spending. We look forward to working with NNT as the company grows.” Says Ian Waterfield, Investment Manager at YFM

The management team are experienced in growing software businesses and working alongside VCs. The early success provides evidence that the business is lead by a strong and professional management team, who have created a well designed product which is gaining rapid market acceptance.

“We are delighted to be working in partnership with YFM. From the outset the team at YFM demonstrated a clear understanding of the value that NNT brings to market. This investment will allow us to continue to invest in the development of our software and importantly provides us with the means of engaging with a wider customer audience through growth in both sales and marketing.” Mark Kerrison, CEO NNT

North West Business Investment Scheme celebrates 5 years of backing entrepreneurs - 06/11/2008

The NWBIS was launched in April 2003 to meet a need identified by the NWDA for a flexible fund to invest in high growth businesses across the North West. Managed by YFM Private Equity, since then 102 investments have been made in 55 companies across the region.

First Deal
Five years have passed since the North West Business Investment Scheme made its first innovative investment alongside business angels in Didsbury Engineering, a long established North West business manufacturing handling and lifting equipment for the aerospace and other sectors.
There has been a growing need particularly in the last 12 months for equity packages to support entrepreneurial businesses. As credit becomes less accessible, alternative ways of funding development and expansion plans are a priority for the businesses struggling in the current downturn.
David Hall, Managing Director, YFM Private Equity says “I am delighted to have been involved with managing this successful fund. The NWBIS team have worked with a large number of innovative and ambitious entrepreneurs, who have built up successful, lucrative businesses and some of whom have gone on to become investors themselves. It is in challenging times such as these where we need to support our small businesses. We look forward to fuelling the growth and adding value to more businesses in the future.”

Successful Exits
A number of successful exits had also been achieved earlier than originally anticipated when the NWBIS began in 2003, returning several £m to NWDA for reinvestment in new investments from January 2009.
NWBIS doubled its money in 2007 following the £60m sale of IPCC to Lloyds Pharmacy. The investment was held for only 12 months, in that time the company had rapidly expanded, acquiring 12 further pharmacies.
“The investment team were partners throughout the process, giving financial and expert support to achieve our goals, allowing us to expand and strengthen the business to the stage we have reached today.” Dr Shah, Executive Chairman of IPCC
27 months after the initial investment, Sage bought Tekton in a £21m sale. The funding from YFM had enabled Tekton to invest heavily in the company’s products and infrastructure, including three acquisitions in 2 years. The rapid expansion led them to become the UK’s fastest growing construction software specialist.
“With the help and support provided by YFM 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.” Said Richard Beaton, Managing Director of Tekton
NWBIS’s achievements have been recognised by the UK Venture Capital industry winning a number of prestigious awards.

Portfolio developments
The fund has backed a variety of businesses and entrepreneurs who have developed successfully into class leading businesses, such as Intempo a leading UK brand of DAB radio and iPod consumer electronic devices, Nanoco a University of Manchester spin-out developing novel quantum dots and DxS, a provider of world class cancer diagnostic business who has recently signed a distribution agreement with Roche Molecular Diagnostics to distribute the companies cancer mutation diagnostic tests in key global markets

Eclipse Energy the company behind the Morecambe Bay world first combined wind and gas energy farm received an initial £150k investment in 2004 to fund this innovative offshore energy project through feasibility and consenting, a further 3 rounds of investment have seen a total of £905k invested by NWBIS. The business continues to make a significant contribution to the UK renewable energy targets.

Epistem Ltd is a developer of stem cell diagnostic and therapeutic technology in 2005 YFM, alongside institutions and private individuals, invested £250k into the business. A further £250k was invested when the business floated on AIM in 2007 and the business continues to make good progress.

Businesses backed by YFM Group better placed to weather the storm - 21/10/2008

Businesses backed by YFM Group funds are better placed than many to weather the current economic uncertainties, thanks to the significant funds available to invest in them and the latest insight provided to them by the Bank of England into the potential impact on small business of the current economic trends.

John Young, an Agent for the Bank of England, met with a large number of senior executives and directors of YFM Group investee companies at one of their regular Portfolio networking events to update them on the latest trends affecting the economy and the outlook for the coming year.

With such a tightening of credit conditions by the banking sector, and many companies already feeling the effects of the downturn, YFM Group portfolio companies are better positioned than many to access the finance they need in the coming months to protect and grow their businesses. YFM Group manages a range of other funds which are actively looking for new investment opportunities.

Says David Hall, Managing Director of YFM Private Equity,” We have in the Group over £150m available to invest in the coming years in our portfolio and in new businesses across a variety of sectors at various stages of development from pre revenue to later stage. Our strategy is to further support our investee businesses in a number of ways – an experienced team of over 40 investment professionals, further supported by non executive directors and chairmen experienced in supporting and growing companies through the ups and downs of economic cycles, and a large and varied network of co-investors able to assist us in funding and supporting our businesses over the long term and to successful exit.”

“When you take on money from an investor, you need to consider what additional support that comes with that money, and whether that support still be there when you need it most. Nearly all businesses go through some tough times during the early development and growth phase, and at those times you need strong support and conviction from your investors. For me YFM stood out as the investor who was always there when we needed them most, and it is fair to say that without their support we may well not have survived one particularly challenging time. Their belief in us, and in their own judgement, was special." Said Paul Phillips of Touch Clarity

“YFM Group has built up a successful portfolio of investments in recent years, across a wide range of high-growth sectors across the UK. We are continuing to see good deal flow and high-quality opportunities and we look forward to providing continued investment and support to help businesses to realise their potential in the years ahead.” Says Peter Garnham, Managing Director YFM Venture Finance.

“We are also keen to hear from experienced individuals who feel they could potentially be a non executive director or chairman in future”

In the last 12 months YFM Group has invested over £42m in 112 businesses across the UK.

Investing in Entrepreneurs - Video - 20/10/2008

THE economic downturn will provide opportunities for entrepreneurs with the bravest taking advantage of their rivals to expand, according to a round table event hosted by YFM Group and TheBusinessDesk.com.

http://video.google.co.uk/videoplay?docid=-942113613915766908&hl=un

David Hall, managing director YFM Private Equity, is calling 2008 the "Year of the Entrepreneur" and says that the Leeds-based venture capital firm believes that past experience shows that now is the time to back good businesses with investment.

When we invested in businesses and when they created the most value was between 1990 and 1992 and 2000 and 2002 and we've sold them on five or six years later. The economic conditions that are coming to pass now are not dissimilar to those times," he told the round table event at YFM's head office in Leeds.

Warren Shermer, managing director of Leeds-based envelope supplier, Great North Envelopes, is one of those entrepreneurs looking at expansion and acquisitions.

He said: "We are looking at buying one or possible two businesses in the UK."

Paul Cannings, managing director of the Chandos Fund, said that the fund invests in companies that typically don't have a 50% market share but a niche in a market.

"There is no reason why they can't double in size and that needs entrepreneurial guts as well as long-term finance and if you put those two things together that is where the opportunity lies," he said.

Andy Hood, managing director of Ilkley-based Sarian Systems which supplies IT for lottery terminals and cash machines and was bought by US group Digi Inc earlier this year, said firms must have confidence despite the difficult outlook

"It's a threat for some people, it's an opportunity for others - you have to react to it," he said.

Gary Lasham, managing director of DS Smith Multigraphics in Bradford, agreed: "This is not the time to batten down the hatches, it's exactly the time to invest."

Kevin Hill, managing director of John Fredericks Plastics in Huddersfield, which makes replacement windows, said: "We are looking to take market share, there is a low cost entry to growth by investing in sales."

Peter Skipworth, MD of Sheffield-based water engineering research business SEAMS, said the company had decided against offshoring any of its operations because the cost and the quality of service meant it did not make sense and it was recruiting skilled staff.

DT Media appoints new CEO to lead its Global expansion - 18/09/2008

Totnes-based software company DT Media has appointed a new Chief Executive and a new Chairman following continued success with Insight, an innovative product aimed at reducing the risk of ‘friendly fire’ in battle.

International information technology expert and Chartered Engineer Robert Kathro has joined the company as CEO, and Doug Littlejohns, top multiple media expert, is the new Chairman.

Robert Kathro has significant leadership experience in a variety of businesses and sectors including technology, defence and marine, and is focused on developing the business into the provider of choice for computer based simulation and training systems, serving customers around the globe.

The new appointments coincide with a further round of funding from the Finance South West Growth Fund, managed by YFM Venture Finance.

DT Media supplies off the shelf and bespoke simulation, training and cutting edge real-time 3D visualization software products, as well as fully integrated ‘turnkey’ simulation solutions to clients across the world.

Robert Kathro said: “This further investment from Finance South West has enabled us to grow our business at a faster rate than would otherwise have been possible. The team looks forward to continuing to deliver an expanding range of innovative simulation and training products and services to both new and existing customers.

Keith Masson, Fund Manager for the Finance South West Growth Fund, said: “We were happy to increase our investment in such a forward-thinking and successful company as DT Media, which now has an impressive client base, and we look forward to playing a significant part in its continuing success.”

YFM Group invests in leading e-learning company, MyKnowledgeMap - 31/08/2008

York based e-learning company MyKnowledgeMap has received a £250,000 investment to realise its expansion plans from YFM Group managed Yorkshire & Humber Equity Fund (YHEF).

Founded in 2000, MyKnowledgeMap develops web-based software and knowledge systems to support learning and training across the educational, public and private sectors. With clients such as the British Council, GHD, Leeds University and a number of National Skills Academies, the company has developed strong partnering links and strategically managed the business to the point where further expansion capital was required.

The investment came after the management team had received assistance from a YFM Business Development managed scheme, High Growth Coaching. The introduction of MyKnowledgeMap to the YFM investment team was made internally.
The business has clear growth opportunities in both the public and private sectors where there is strong market demand for remote learning solutions, the dynamic management team and highly experienced CEO Rob Arntsen will utilise the investment to help deliver its ambitious expansion plans.

“We are one of the UK's most rapidly expanding learning technology providers with a reputation for innovative solutions and strong continuing support services. The support from YFM has opened doors, we can now leverage our proprietary software and continue to support the rollout of the National Skills Academies programme” explained Rob Arntsen.

Ian Waterfield, Investment Manager at YFM said “With a strong client base and clear demand within the government’s upskilling agenda, this is a great opportunity for MyKnowledgeMap and YFM. Rob has built a team who have already demonstrated commitment to the growth and development of both the company and its employees. We look forward to working with Rob as the business evolves.”

YFM Group invests in mobile technology software business Mobile Safety Solutions - 26/08/2008

An increasing number of mobile workers will be finding their lives easier by using software developed for PDAs and mobile phones following an investment in Mobile Safety Solutions by YFM Group managed Yorkshire & Humber Equity Fund (YHEF).

Wetherby based Mobile Safety Solutions which was formed in 2006 by Directors Brian Alsford, Tony Preston and Nick Barr has quickly established itself as a leading innovator in the provision of web-based application software for mobile workers.

The mobile workers using the software are typically inspectors or surveyors who need to record data whilst on site and benefit from the advantages which are provided by the real time capture and processing of the information.

The investment from the YHEF has come at a time when the company is looking to expand rapidly taking advantage of the growing order book and new customer relationships.

Paul Betts, Investment Manager YHEF, saw the potential of the product and its niche in the market. He commented “Since our first introduction to the business we have been very impressed with the product offering developed by Mobile Safety Solutions. This product allows customers to harness mobile technology to create greater efficiencies within their business. The return on investment provided to customers makes a compelling case for use of the software.”

Originally developed for the Health & Safety market, one of the first customers was Faithful + Gould, a global consultancy business, which rapidly rolled it out to its UK commissions. The software allows inspectors to carry out more efficient on site work and also allows instant report generation saving both on time and cost.

The business is also experiencing significant growth in other areas, particularly construction and property where the software can be applied to other survey and project management applications. The Company expects to announce some significant new customers in the commercial property, logistics and manufacturing sectors over the next few weeks.

Director, Brian Alsford commented “We have developed a proven proposition which is providing our customers with real cost savings and significant working efficiencies. Our software has many applications beyond Health & Safety and increasingly our customers are expanding its use to different areas within their businesses. We are very pleased to have secured an investment from YFM and we are glad that we now have a funding partner on board who understands the market opportunity and can help us to achieve our plans for expansion.”

Yorkshire and Humber Equity Fund invest in security world first - 22/07/2008

Skipton based Syphan Technologies has received a £250,000 investment from YFM Group managed Yorkshire & Humber Equity Fund (YHEF).

YHEF saw the huge potential of the products, which when launched will be a world first for line-rate 10 Gb/s intrusion protection, content monitoring and data leakage prevention. Syphan has developed the highest security performance network security appliances in the industry.

Founded in 2006 through an innovative use of technology, Syphan has found new ways of dealing with problems that scale to speeds and volumes far beyond what is currently available on the market. Its innovative state-based product architecture allows it to operate in multiple detection modes simultaneously, dealing with well-known threats as well as newer stealth-based developments.

YHEF has enabled Syphan to complete its first product design, improve manufacturing processes as well as gear up its engineering and commercial operations in readiness for its initial product launch later this year.

“We quickly recognised that Syphan had a compelling proposition that had the ability to take the leading position in a market that is growing at an explosive rate. This is an exciting opportunity for YHEF and Syphan.” Said Chris Fitzsimmons, Investment Manager, YHEF

The amateur hacker has been supplanted by the professional criminal. As a result, today’s businesses face threats that involve fraud, identity theft, illegal access and a rapidly evolving array of crimes that can literally result in millions of dollars of losses.

Syphan had approached other forms of funding but YHEF offered both the understanding of the technology opportunity Syphan is addressing and the readiness to back a ‘big’ idea in a market area traditionally dominated by North American and Israeli companies at a time where businesses are continually finding it difficult to raise the finance from banks and such institutions.

Pravin Mirchandani, CEO of Syphan Technologies, underlined the value of YHEF’s support: “YHEF understood our value proposition from day one, did the research to understand the nature and size of the opportunity and then demonstrated the backing and flexibility to make sure we could go forward.”

800% INCREASE IN SALES FOR BRISTOL BASED HOLIDAY COMPANY - 14/07/2008

Bristol-based villa specialist Sunisle has secured financial backing from Finance South West allowing the company to implement ambitious plans which aim to increase sales by an impressive 800%.

Offering villa holidays on selected Greek islands, Sunisle applied for investment from Finance South West Growth Fund, managed by YFM Venture Finance, to support an accelerated expansion strategy which will see the company diversify into new destinations and target new distribution channels. The company’s success is based on its early adoption of the internet as a sales and marketing platform, combined with the move by consumers to adopt the web as their tool of choice to find and book their holidays.

Two new members of staff have already been taken on to deal with the increased levels of business, with more to be employed shortly as further interest is established. The company anticipates increasing sales by a factor of eight over the next three to four years.

Finance South West, which is part funded by the EU, is an £18 million investment fund that can provide commercial finance from £10,000 up to £1 million for buying, starting or growing a business in the Objective Two area of the South West. It has now invested £11.6 million in the region’s businesses, levering £26 million into the South West economy.

Nick McKenna, Director of Sunisle, commented: “We cater for ‘savvier’ clients who demand expert product knowledge and high levels of personal service that is tailored specifically to their needs… the good news is that they are happy to pay a premium for a better quality holiday experience. This investment is a strong vote of confidence for Sunisle especially given the current turmoil in the money markets and we see an exciting future ahead for the business. We found that Finance South West really understood the drivers to our business and could see the opportunities for growth.”

Will Jenkins, Investment Manager at Finance South West, added: “Sunisle uses a pure online business model which is proving to be very successful. We are looking forward to working with the company and seeing their bright ideas come to fruition.”

Christ 'MAS' comes early to manufacturing company - 30/06/2008

Christmas has come early this year for Huddersfield-based K D Decoratives (a global leader in the field of theming and animatronics for festive displays) thanks to expert advice from the Manufacturing Advisory Service Yorkshire & Humber (MAS Y&H), which has led to the firm saving thousands of pounds through greater efficiency and resulted in an increase in turnover and the creation of new jobs.

K D Decoratives, which currently employs 65 people and has a turnover of £4.5m was founded over 30 years ago by Richard and Gloria Kitchen-Dunn. The firm has developed from specialists in window dressing to providing animatronics and themed grottos for blue chip companies such as Harrods, P&O, Tussauds, Alton Towers and the Trafford Centre.

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.

Although the management team at KD Decoratives has been extremely successful in moving the business forward, it has struggled with issues such as time management and stock control due to the complex nature of customer demands and seasonal fluctuations. To help resolve these issues, the company called in MAS for expert help and to review all aspects of activity. MAS adviser, Dean Morgan of MCCR & Associates established a strategic plan and the firm has recently completed a 10 day manufacturing efficiency project.

The results of the MAS intervention have been impressive and resulted in an estimated saving of over £80,000 pa; an increase in turnover of £300,000; productivity per person up by £5,800 pa and the creation of two new jobs.

Richard Kitchen-Dunn said: "Thanks to the support of MAS and the expert advice of Dean Morgan, our family run business now has a more professional approach and a greater awareness and ability to manage our production time, operation costs, cash flow and profitability."

He added: "We now have the right tools that we can build upon and, as a result, the business can handle a much larger number of projects during the run up to our busiest time of the year."

Practical MAS support gives Darron the 'Tools' to succeed - 20/06/2008

Darron Tool & Engineering has achieved an outstanding 200% boost in sales thanks to practical support and on-site training from The Manufacturing Advisory Service (MAS) Yorkshire & Humber to help improve its manufacturing performance.

Darron manufactures a range of high quality components which are supplied to the oil and gas industries. This requires an experienced team of highly skilled employees with in-depth knowledge of advanced engineering materials. It was founded in 1969, and is located in Rotherham’s heavy industrial heartland. In 2000, Darron became part of the Schoeller-Bleckmann group, helping to strengthen its position through investing in modern machine tools and manufacturing capabilities.

The company invited MAS specialist Kerry Cochran to assist in identifying improvements in theirmanufacturing processes by eliminating waste and assist in ensuring a "right first time" culture.

Darron’s manufacturing director, Gerald Smith explained: "It was vital for us to improve our production planning process and reduce machine downtime and scrap if we were going to achieve both customer and shareholder demands. MAS has played a vital role in helping us to address these issues, resulting in a 40% reduction in overdue orders; as well as modernising our approach so that we could introduce ‘Lean’ into our manufacturing operations."

MAS also delivered a series of grant subsidised training workshops to Darron’s shop floor and staff, teaching them the core principles of Lean manufacturing, leading culture change and the techniques of change management to help underpin the improvements taking place around them.

Gerald added: "Getting our people behind the changes was critical and has been the key driver in keeping momentum going. Our employees have felt empowered to come forward with their own suggestions to improve the daily tasks they complete. Since working with MAS, we’ve improved our performance to our customers and received encouraging comments from our parent company. MAS has been critical in enabling us to achieve our ambitious sales targets, which have far exceeded expectations."

The company is now making significant leaps forward; an aggressive sales plan has been delivered, helping to increase sales by 200% since 2005, with similar improvements seen in profitability.

Jim Farmery, head of innovation at Yorkshire Forward concluded; "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."

EFLOW SET FOR GROWTH FOLLOWING INVESTMENT - 19/06/2008

A Wells based company which develops software for the banking and financial industry has secured £330,000 from the YFM Group managed South West Ventures Fund. The funding will enable eflow (UK) Limited to take advantage of a growth in demand for specialist software by financial traders following the introduction of the Markets in Financial Instruments Directive (MiFID).

eflow’s TransacTzar software provides evidence that a trading firm has achieved ‘best execution’ and has complied with the new European MiFID regulation. It does this via a comprehensive transaction monitoring platform that re-creates and stores the market conditions, trade by trade. The software is considered by Thomson Reuters (a shareholder and partner in the business) to be a unique product in terms of its flexibility and functionality. TransacTzar can be deployed in the five main asset classes: equities, foreign exchange, money markets, commodities and derivatives.

The MiFID regulations cover all companies trading financial instruments, including banks, investment banks, broking houses, market data companies, trading platforms and exchanges. The Directive requires all financial institutions to adhere to a code of best execution – taking into account price, venue, cost and speed – and to demonstrate transparency, retaining concise details of every trade for a period of five years.

eflow was founded in 2004 by Marsha Parker, who developed the successful PATH (Peer Application Transaction Hub) technology, which carries out much of the workflow between trading and settlement systems. Users include the Co-operative Bank and Hypo Vereinsbank; PATH has enabled Hypo Vereinsbank to move from 800 trades a day and 20 back-office staff to more than 6,000 trades a day and just five staff.
TransacTzar uses PATH technology to create a trades-based data model which sits alongside the trading software used by financial institutions, ‘listening’ to and recording all transactions to create a detailed record and to match this against real-time pricing data. The software then reconciles each trade and measures whether the transaction achieved best execution, ensuring compliance with the MiFID regulations and the creation of a full audit trail for FSA purposes. The results are displayed on a ‘dashboard’ that highlights any exceptions; the trader will note on the system the reason for the exception, which is then passed to the treasurer for authorisation or further action.

The technology is delivered by a hosted application service provider via the internet on a fee-per-transaction basis and as such is suitable for both small and large users.
Marsha Parker said: “eflow deals with and supports blue chip clients in the City with Mission Critical system. YFM Group’s funding will enable us to roll out the software platform to other blue chip institutions across the city. eflow recently completed an implementation with MF Global (Man Securities) in London. MiFID is in its infancy and MF Global believe that TransacTzar provides the best solution of MiFID compliance, particularly as the directive evolves over time.”

Julian Dennard, Senior Investment Manager at YFM Group, managers of the South West Ventures Fund, said: “The market has grown as a result of the MiFID regulations. Tier 2 and lower financial institutions do not have the systems or infrastructure to record and store the information required to be compliant. Many do not have the resources necessary to implement a solution in-house, creating demand for TransacTzar’s ‘off the shelf’ solution.”

The professional team advising in respect of this deal included Andrew Betteridge, of Ashfords Solicitors in Bristol, and Alan Cottle, of Pegasus Funding Resources. Due diligence was performed by Richard Plunkett at Milstead Langdon.

GNODAL SECURES FUNDING FROM YFM GROUP TO SCALEUP DEVELOPMENT OF DATA CENTRE TECHNOLOGY - 19/06/2008

Bristol-based Gnodal, which is developing a revolutionary technology for use in high performance data centres, has secured finance from the YFM Group managed South West Ventures Fund as part of a £1.1 million funding round. Adrian Beecroft and NESTA were co-investors in the round and a second closing saw the YFM Group managed Finance South West Growth Fund also investing in the company.

Gnodal, which is located in the SETSquared business incubator at Bristol University, has developed technology that gives an order of magnitude improvement in data centre performance and power efficiency.

With rapidly increasing volumes of information, data centres are growing in size and power consumption. Traditional technologies have become inefficient as data centres have increased in size.

At present, these problems principally affect the very largest users of high performance computing facilities, but are increasingly experienced in enterprise and Internet data centres. With the advent of virtualisation, web 2.0 and sophisticated corporate applications, this is becoming more of an issue.

The Gnodal solution, offering a unique combination of high performance, low cost and low power, enables the construction of even larger scale data centres and higher performance computing systems. The market research company Dell ‘Oro predicts that in 2011 Gnodal’s addressable market will be worth $4.8 billion.

Fred Homewood, CEO of Gnodal, said: “Our products will offer performance levels significantly exceeding those found today in large data centres. We will be offering a range of products to satisfy the smallest systems to the largest server clusters and storage arrays.”

Julian Dennard, Senior Investment Manager at YFM Group, said: "Gnodal has developed an innovative solution for a high growth market. Fred Homewood has put together a highly qualified and experienced team and we look forward to working with them."

GNODAL SECURES FUNDING FROM YFM GROUP TO SCALEUP DEVELOPMENT OF DATA CENTRE TECHNOLOGY - 19/06/2008

With rapidly increasing volumes of information, data centres are growing in size and power consumption. Traditional technologies have become inefficient as data centres have increased in size.

YFM GROUP & SWARRATON PARTNERS CO-LEAD �2 MILLION INVESTMENT IN MICRIMA TO DEVELOP NEW IMAGING TECHNOLOGY FOR BREAST SCREENING - 18/06/2008

Bristol-based Micrima, which is developing radio wave technology to improve detection of breast cancer, has secured £2 million of investment from a syndicate of co-investors led by YFM Group and Swarraton Partners. Existing investor NESTA also participated in the funding round. The YFM Group investment was made from the South West Ventures Fund and Finance South West Growth Fund.

Micrima, a spin-out from the University of Bristol, is developing a breast imaging system that captures high-resolution, 3D images through the use of harmless radio waves. The system is called MARIA - Multistatic Array processing for Radiowave Image Acquisition.

Breast cancer is the most common cause of death for women aged between 35 and 59 in the EU1. For various reasons the under-50s are not routinely screened. Micrima’s technology has the potential to offer several advantages over existing primary screening technology, which encounters difficulties in imaging the dense tissue associated with this younger age group. MARIA promises to provide better images in such tissue, and is also relatively inexpensive, intrinsically safe, and comfortable for the patient.

The implications of this safe new technology are far-reaching, particularly as the compact size and low cost of the MARIA system will make it ideal for use in numerous alternative locations such as GP surgeries, diagnostic centres and mobile screening units.

Initial blind trials with volunteers have shown MARIA to compare very well with current X-ray technology, correctly identifying all participants with anomalies and ’clearing’ all healthy volunteers.
The initial investment will fund on-going technical development and further clinical trials at the Frenchay Hospital’s Breast Clinic in Bristol. Clinical work will then be extended to include women from other leading centres around the UK.

Roy Johnson, Executive Chairman of Micrima, said: "The new 3D breast screening platform under development aims to be safer, more convenient, and more economically viable in a greater number of countries, in addition to providing a practical solution to screening women below the age of 50. We are very pleased that, following our successful pilot clinical study, we have been able to attract this new funding from such a valued and committed group of investors.

"We are looking forward to generating data from the larger clinical trial that is now required to further prove the technology and its inherent benefits.”
Nick Simmonds, Investment Manager at YFM Group, manager of the South West Ventures Fund, said: “This exciting new technology has the potential to fundamentally change the way in which breast screening is provided, as well as opening up the service for the first time to younger women.”

Stephen Brooke of Swarraton said: “We are excited to be backing the Micrima team and a technology that has shown great promise to date and has the potential to reduce suffering from breast cancer across the world.”

MAS helps Chapmans become quick, slick and profitable - 30/05/2008

Sheffield based Chapmans is 21% more productive and on course to achieve a record turnover of £8m thanks to the continued support of the Manufacturing Advisory Service (MAS) - Yorkshire and Humber to help implement Lean into its manufacturing operations.

Chapmans is a long established manufacturer of wear resistant pressings and fabrications for agricultural machinery. The industry has always been highly competitive and the agriculture market (which makes up 80% of its customer base) has undergone dramatic change in recent years. To gain competitive edge, the company has begun to apply its expertise into developing products for a wider range of industries including grass care, mining, road-laying and recycling.

Managing director David Byers said; "We recognised the need to evolve quickly if we were going to retain our position as market leaders. Our stockist customers were beginning to embrace Just In Time (JIT) which required a complete transformation of our production process to become a ‘quick, slick and profitable’ Lean operation. MAS specialist Paul Brown has played a vital role in helping us address these issues, resulting in a 58% improvement in stock turns; as well as modernising our approach so we could embed ‘Lean’ into the culture of the business."

After making a strong start, Chapmans was hit severely by the floods of June 2007 which halted production for nearly 8 weeks. But the clean-up operation that followed gave the workforce the added motivation to ‘wipe the slate clean’ and accelerate their progress.

MAS delivered a series of grant subsidised training workshops to Chapmans’ shop floor staff, teaching them the core principles of Lean manufacturing to help underpin the improvements taking place around them. A Lean ‘champion’ is now working full time to steer changes.

David added: "Getting our people behind the transformation has been critical in keeping momentum going. MAS has provided us with the direction and continued support needed to put our plans into action. They’ve also helped to implement a new capacity planning and bar code system making it easier for us to track products through production."

Despite the set-back of the flood, Chapmans is achieving record turnover month on month and is winning new export customers who demand accurate on-time deliveries with penalty clauses if they deliver late. The confidence to do this has only come about by harnessing the support of their workforce to make realistic and sustainable improvements that have essentially reinvented the business.

SANDOMS SET FOR FURTHER GROWTH AFTER MANAGEMENT BUYOUT - 21/05/2008

Yorkshire & Humber Equity Fund and PIF invest £350,000 in shop fitting business

One of the region’s largest shop fitting businesses is set for growth following a management buyout of the company backed by the Yorkshire & Humber Equity Fund who have taken a minority stake in the business and Partnership Investment Finance, who provided loan finance.

The management team led by Managing Director Garry Clark and Financial Director Chris Sutcliffe has received £350,000 investment from the Yorkshire & Humber Equity Fund (YHEF) and Partnership Investment Finance (PIF) to help finance the deal along with support from existing funder Cattles Invoice Finance.

Established in 1964, Batley-based Sandoms provides shop fitting services to some of the UK’s best known brands. The company also manufactures its own units and counter displays for customers, which means Sandoms provides a full range of services to retail customers from original concept and design to final fit out ready for the high street.

With high profile customers including Thorntons Chocolates, Specsavers opticians, Pizza Express and Punch Taverns the management team are confident the prospects for growth are promising.

Garry Clark Managing Director commented: “Both myself and Chris are delighted to have completed the purchase of the business with the help and support of YFM Group and PIF and are looking forward to continuing the success and development of Sandoms. We will continue to work with our customers closely to deliver outstanding service and build long term relationships which have been vital to the company’s development.”

The deal was another successful transaction for YHEF and PIF who saw strong opportunities for market growth and an opportunity to back an experienced and ambitious management team.

Paul Betts Investment Manager at YHEF said: “Garry and Chris have a wealth of experience and knowledge in their market. The business has developed a number of long term relationships with some leading high street names and has some exciting new prospects. We look forward to working closely with Garry and Chris to help them achieve their plans.”

Paul Baxter, Investment Manager at PIF: “As a manufacturer Sandoms is well-placed to deliver a seamless service to its customers on the high street and the prospects for the company’s continued growth are very encouraging.”

The deal was led by Yorkshire & Humber Equity Fund and existing funder Calvin Dexter provided continued support for the business in the form of Invoice Discounting facilities from Cattles Invoice Finance.

YFM Venture Finance invest further in Global SIM Card provider - 21/05/2008

The Yorkshire and Humber Equity Fund (YHEF), the Regional Venture Capital Fund for the Yorkshire and Humber region, managed by YFM Venture Finance has invested a further £250,000 in York-based GO-SIM – a leading provider of prepaid global SIM cards for mobile phones.

Chris Fitzsimmons, YHEF investment manager, was first introduced to GO-SIM in early 2007. He commented, “Since our original investment, we have been impressed by GO-SIM’s progress. Having recently secured a key route to market with one of Europe’s leading travel companies, GO-SIM is well placed to exploit the market opportunity for travellers to make significant savings on calls from abroad.”

David Agar, CEO of GO-SIM commented “Having YHEF onboard has enabled us to become one of the leading providers of smart, low-cost international mobile solutions. We’ve made a successful push into the US outbound traveller market, and are now looking for distribution into Asia. With an exciting product development road map ahead of us, the future is very interesting indeed”.

YHEF first invested in GO-SIM in August 2007. Seven months on, the company has seen continued growth developing voice and messaging products, an increase in staff numbers and heavily invested in marketing increasing its customer base by 214%.

GO-SIM has a client base which includes the leading airport and airlines supplier, Alpha Retail, 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.

YHEF is a £25 million Regional Venture Capital Fund which will invest in fast growing SMEs across the Yorkshire and Humber region, managed by YFM Venture Finance and part of the YFM Group. Investments can be up to £500,000 although any initial tranche of money would be to a maximum of £250,000.

Lawyers for YFM Group were Keeble Hawson and Hempson for GO-SIM.

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).

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.”

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.

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.”

Cancer Treatment Innovators secure Significant Investment - 02/09/2007

Medical technology company, Vision RT, specialists in 3D surface imaging for use in radiotherapy treatments, has secured substantial new funding, including 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. Vision RT was founded in 2001 by Norman Smith (chief executive), Ivan Meir (chief technology officer) and Peter Kalms (now a non-executive director), who identified a need for better patient set-up and monitoring for radiotherapy treatment. During courses of radiotherapy, it is vital that the patient is positioned correctly so that the stream of radiation is delivered to the tumour and avoids the surrounding tissue, particularly when the tumour is located close to critical organs. The solution that Vision RT came up with - AlignRT® - produces a three dimensional model of the patient using a two-camera stereo vision technique. This enables more accurate patient set-up prior to each treatment session. Norman Smith said: "Over the past ten years, radiation delivery technology has developed so that it can be accurate to within a couple of millimetres. Published studies on partial breast irradiation patients have shown that traditional patient positioning methods, using lasers or portal imaging, don't get close to this level of accuracy, which means errors can be as high as six to eight millimetres. In contrast, studies to date suggest that AlignRT is accurate to within two or three millimetres."AlignRT also incorporates sophisticated patient monitoring facilities, meaning that if a patient moves during a treatment, the system detects this and automatically shuts off the radiation beam to prevent damage to non-tumour tissue. Combined with its auto-correction capability, AlignRT can facilitate high-end treatments including those that deploy larger doses in fewer fractions (treatment sessions), meaning that patients can be treated more effectively than has previously been possible. A further difficulty, particularly during lung cancer treatment, is coping with respiratory motion as it moves the position of the tumour. To solve this, the Vision RT team has developed GateCT and GateRT, which track the breathing cycle via 3D surface imaging at up to 20 frames per second. GateCT is used in conjunction with a CT scanner for the 4D planning of treatment and GateRT enables gated radiotherapy at specific regions of the breathing cycle. In other words, the radiation beam is turned off and on so that it only fires when the tumour is in the correct location. It is estimated that there are around 8,000 radiotherapy machines worldwide, with approximately 400 new systems produced each year. Dr Smith said: "Our technology can be installed on new or existing equipment, and has been specifically designed to interface with third party radiotherapy devices."Vision RT systems are already successfully deployed at many of the world's leading radiotherapy treatment centres, including Massachusetts General Hospital in Boston and the Royal Marsden Hospital in London.Dr Smith said: "The new funding will allow us to develop a direct representation in the US, a huge potential market for us, and push forward with the further development of GateCT and GateRT. We are delighted to have secured the support of The Capital Fund - Ian Cameron and his team were extremely helpful throughout the due diligence process. The Capital Fund's Investment Director, Ian Cameron, said: "We are very pleased to be investing in Vision RT at such an exciting stage of the company's development. The new round of funding will allow the Vision RT team to take the Company forward on an even more secure footing.

Cornwall to Produce UKs First Ocean Harvested Culinary Sea Salt - 01/09/2007

Construction of the UK’s first sea salt plant that harvests direct from the ocean has begun in a unique location at Porthkerris on the Lizard Peninsula, following a six figure investment that will create up to 15 jobs in the region. The Cornish Sea Salt Company will be producing a flaky, white culinary sea salt that will be hand-harvested from the clear Atlantic waters of Cornwall and is a purer, healthier and tastier alternative to traditional table salt.

The project got the go-ahead following a financial deal with Finance Cornwall, the YFM Group managed South West Ventures Fund, Bank of Scotland and the South West Investment Group.

Tony Fraser, Managing Director and resident of St Keverne, has worked on the idea for nearly 3 years and built on his experience as a natural resource specialist. His idea for the project came about after visiting an Iron Age salt production site on the coast of the Lizard. He set up the Cornish Sea Salt Company with the aim to establish the first ever sea salt facility in the UK to harvest directly from the ocean.

Tony stated, “Cornish Sea Salt Co will be providing employment for up to 15 local people and will utilize sustainable, energy efficient and environmentally sound methods. We have had tremendous support from the local community and we want to be a business that they can be proud of.”

“Deeply rooted in Cornwall, Cornish Sea Salt Co values its Cornish provenance and the brand will focus on Cornwall’s heritage and fresh, clean coastline,” says Ellie Bradshaw, Marketing Director for Cornish Sea Salt. “Born and bred in Cornwall, I am thrilled to be part of this new and exciting venture that will add to Cornwall’s already diverse and interesting culinary and gastronomic reputation. It is our intention to work closely with local retailers and chefs alike to bring Cornish Sea Salt to your table in the Autumn.”

Robert Seymour, Managing Director of Finance Cornwall, said: “We are always delighted to invest in projects that create or safeguard jobs in the region and are sustainable and environmentally sound. In addition it is great to be behind a brand that I have no doubt will grow and appear on shopping lists around the world.” Julian Dennard from YFM Group said: “This latest deal on behalf of Cornish Sea Salt represents a great opportunity to support a pioneering company that will have a positive impact on its local economy and create more jobs. Cornish Sea Salt is a strong brand that we believe will gain strong support from the catering and hospitality industries and consumers alike. We look forward to working closely with Cornish Sea Salt and helping other companies in the region that have similar high growth potential.” The project has already received support from Natural England, the National Trust, The Environment Agency and consequently Kerrier District Council.

Mirifice Secures VC Funding for Innovative Digital Monitoring Solution - 03/07/2007

Mirifice Ltd has secured £250,000 of funding from the YFM Group managed, South West Ventures Fund. Mirifice has developed MirimonTM, a unique monitoring solution for Digital TV networks, and the investment will be used to support the marketing and rollout of the product to major cable, satellite and IPTV broadcasters.

MirimonTM gives Digital TV broadcasters an unprecedented view of the customer experience that they deliver, and enables them to monitor and improve their end-to-end service delivery. With the drive to offer Triple and even Quad-play services, network technology convergence has brought Broadcasters, Telcos and ISPs into direct competition. These companies are struggling to simultaneously role out new services and new technologies whilst improving their quality of service, particularly for Digital TV. Without a real-time view of their service delivery they are running blind: MirimonTM provides this view.

Mirifice’s current customer base includes leading Digital TV broadcasters and Set Top Box manufacturers such as Virgin Media, Sky, Pace, Amino, Thomson, OpenTV and Scientific Atlanta. The benefits of MirimonTM is to enable broadcasters to improve the customer experience they deliver: reducing churn, improving customer acquisition and encouraging the adoption of revenue generating services. This also enables more efficient customer relationship management, network management and set-top box management, thus reducing operational costs.

Mirifice’s patented technology monitors the quality of the service delivered to the subscriber in the live network. If the quality falls outside an acceptable envelope the broadcaster is notified with supporting diagnostic information. MirimonTM can even identify problems before the subscriber is even aware of them.

The YFM Group investment will support rollout of the product and fund sales and marketing initially focusing on direct sales to European broadcasters. In parallel Mirifice is developing a channel sales model, based on OEM licensing and integrator/re-sellers, to address the global market.

Paul Tinkler, Chief Executive of Mirifice, helped found the company in June 2004. Speaking about the investment he said: “The funding from the YFM Group has come at an exciting time for the company. This investment enables us to aggressively promote Mirimon to the global market and to make further enhancements to the product. The advice we received from ICON Corporate Finance was invaluable in identifying YFM Group as the right investment partner for Mirifice.”

Mirifice, which was founded in the University of Bath’s Innovation Centre, is another example of successful business incubation by the SETsquared Partnership. The company now has a turnover in excess of £1m, and in 2006 moved to its own premises in central Bath.

Julian Dennard from YFM Group said: “This is an excellent company for us to support. MirimonTM is a market-leading product with few, if any, serious competitors. Mirifice’s existing customers are extremely supportive of the MirimonTM product and the benefits it can bring. We are pleased to support this competent and highly regarded management team and look forward to working with the company to achieve future success.”

Eddie Harding of ICON Corporate Finance who introduced YFM and advised on the deal said: “Mirifice has developed a unique product and is leveraging its extensive existing relationships in the broadcasting sector to become a world leading provider of Digital TV network monitoring services. This funding from YFM is an important first step in helping to take the company onto the global stage.”

�2.1m from YFM Private Equity as it makes second Chandos Fund investment - 12/06/2007

YFM Private Equity has provided £2.1million to back the MBI of specialist recruitment business Harris Hill. The Chandos Fund will invest £1.5 million alongside £0.6 million from the British Smaller Companies VCT and a debt package from HSBC.

Harris Hill is a niche recruitment business with a strong reputation for providing excellent permanent and temporary recruitment solutions to the charity and not for profit sectors. Aled Morris is the incoming CEO who has a successful track record in a number of recruitment businesses including Office Angels, Spherion and the Angela Mortimer Group. James Wellesley Wesley will be joining as chairman. James has a reputation as one of the leading corporate finance advisors in the recruitment sector where he has been advising businesses for over 20 years.

Aled Morris, CEO of Harris Hill said “This is a very exciting development for Harris Hill. It is a very strong business and brand and is well placed to deliver the ambitious growth and development plans we have. YFM have been supportive and straightforward throughout the buyin process and are an ideal partner for us as we look to grow”

Harris Hill was previously owned by Steve and Julie Hill, a husband and wife team who were keen to pass on their business to someone who could take it on to the next stage of its growth. Julie Hill commented “We are delighted to see the business continue with its original team. With the addition of Aled as CEO we look forward to seeing the business continue to flourish.”

Paul Cannings, Director of the Chandos Fund commented "We are pleased to have made our second investment from the Chandos Fund so soon after our first close. This is an excellent opportunity to buy into a quality business with a strong reputation for excellent service in a growing niche of the market. Aled Morris has a good track record of growing recruitment businesses and we look forward to working with him as the business grows over the next few years.”

YHEF invests �150,000 in Lattice Voice Technologies Limited - 11/06/2007

The Yorkshire and Humber Equity Fund, managed by YFM Group, has invested £150,000 in language tools company Lattice Voice Technologies Limited, allowing them to complete their product development and fund initial sales roll out.

Based in York, Lattice Voice Technologies has designed a solution to problems faced by many organisations who are contacted by individuals who speak a different language. The software is called ‘First Contact’ and enables rapid identification of the language being spoken and assessment of the immediate requirements.

Aimed initially at public safety access points such as the Police; Ambulance; Fire; Coastguard services, the system communicates with the operator and the caller in their respective languages.

David Livesley, Investment Manager at YFM Group, saw this as an opportunity to back a strong management team with a unique product filling a niche market, enabling emergency services to rapidly assess and respond to a situation with 24 hour support. A number of police forces have expressed interest in trialling the system, and the team hope the investment will increase the speed of product roll out and fund future product development.

“Due diligence feedback from potential customers was extremely positive, both about the product and the management team” David Livesley, YFM Group.

“Raising the investment the business required to execute our plans has been very straight forward, with YFM Group taking a thoughtful and cooperative approach that has been extremely helpful.”
Neil McCutcheon, Managing Director - Lattice Voice Technologies

Offering a number of products for operatives in the field, Lattice Voice have also developed First Contact ‘On the Street’, a portable solution that integrates with almost any mobile computing device, be it a Blackberry, PDA, or Smart phone.

First Contact – ‘In the Office’ for those in office environments allowing speakers of different languages to communicate in a wide range of dialects. Operation is simple and training is minimal for any user.

Lattice Voice sought the funding from YHEF following advice from Connect Yorkshire. The management team hope to see the company grow and become established as a high performance multi-lingual communication company used by not only the emergency services, but in any scenario where structured communication is feasible using a scripted dialog.

For photos or more information contact Ann-Marie Crookes, Group Marketing Executive 0113 294 5000