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Finance Yorkshire Welcome

Join us for a dialogue on strengthening relationships with stakeholders, partners, intermediaries, and clients, and learn about our investment performance and impact. Finance sourced from various funds.

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Finance Yorkshire Welcome

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  1. Finance YorkshireWelcome www.finance-yorkshire.com

  2. Finance YorkshireJennie Adams - Director www.finance-yorkshire.com

  3. Finance YorkshireWhy are we here this morning? • Strengthening relationships with stakeholders, partners, intermediaries and clients • Demonstrating how we are working in partnership with our LEP to support business growth • Looking to the future • Dialogue and questions www.finance-yorkshire.com

  4. Finance YorkshireAgenda • Jennie Adams, Director, Finance Yorkshire • Alex McWhirter, Chief Executive, Finance Yorkshire • James Trowsdale, Local Enterprise Partnership • Gerard Toplass, Frillo Ltd – Seedcorn Investee Company • Neil Bangham & Richard Stow, Weedfree Limited – Business Loans Investee Company • Mark de-VillamarRobers, Envirodoor Ltd - Equity Linked Finance Investee Company • Questions & Answers www.finance-yorkshire.com

  5. Finance YorkshireAlex McWhirter – Chief Executive www.finance-yorkshire.com

  6. Finance YorkshireWhat we are… £90m Venture Capital and Loan Fund Finance sourced from: £30m European Regional Development Fund £15m UK Government £45m European Investment Bank www.finance-yorkshire.com

  7. Finance YorkshireOur business approach… • To fully invest the £90 million fund through helping SME’s constrained by finance to grow • To create a sustainable fund • To be recognised and respected as a key participant in the SME business and professional sectors • To stimulate demand for finance in our key market segments • To realise good returns for investors and value for money www.finance-yorkshire.com

  8. Finance YorkshireOur investment performance so far... • 543 investments totalling over £67.5 million • On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage • On track to achieve full investment by December 2014 www.finance-yorkshire.com

  9. Finance YorkshireInvestment Profile www.finance-yorkshire.com

  10. Finance YorkshireInvestment Profile www.finance-yorkshire.com

  11. Finance YorkshireInvestment impact... • Created or safeguarded 6608 jobs • Over £140 million Private Sector Leverage, resulting in £2.12 levered for every £1 invested • Generated £84m in increased turnover • Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019 www.finance-yorkshire.com

  12. Finance YorkshireInvestment performance by location... www.finance-yorkshire.com

  13. Finance YorkshireInvestment performance break down... www.finance-yorkshire.com

  14. Finance YorkshireInvestment performance by sector... www.finance-yorkshire.com

  15. Finance YorkshireInvestment criteria… • A business with growth potential • A new start or growing business • A business unable to source its full funding requirement from the commercial market • SME’s paying business rates in Yorkshire and the Humber or relocating to the region www.finance-yorkshire.com

  16. Finance YorkshireThree portfolios • Seedcorn Finance Up to £780k • Business Loans £15k - £250k • Equity Linked Finance £100k - £2m www.finance-yorkshire.com

  17. Finance YorkshireSeedcorn Finance • Start up or early stage innovative business during the fund’s early period, but now focussed on more mature innovate businesses that are self-sustainable with our investment • Based on strong and unique technology, know-how or content that will usually be protectable • Have potential for rapid growth and multiple returns of the original investment • Based in or have significant activity in Yorkshire and Humber www.finance-yorkshire.com

  18. Finance YorkshireSeedcorn FinanceWhere investment made a difference • Carlton Manufacturing - Moved to larger premises and radically changed its manufacturing process following Finance Yorkshire investment • Xeros – Finance Yorkshire invested a total of £1.45 million over three funding rounds. Market capitalisation of £80m when admitted to AIM in March 2014 • Faradion – Latest round of funding included investment from trade partner Haldor Topsøe. The investment will enable the company to further develop its technology as well as to do small scale production of their next generation battery materials www.finance-yorkshire.com

  19. Finance YorkshireBusiness Loans • Fixed rate loans typically between £15,000 - £250,000 as syndicated or complete financial packages for businesses • Financial packaging with other forms of debt finance including the banks • Range of investments include; Working Capital, Capital Expenditure, Investment in Premises and development capital www.finance-yorkshire.com

  20. Finance YorkshireBusiness Loans Where investment made a difference • Green Peas Solutions - Business Loan enabled company to invest in research and development and expand its innovative packaging range. • William Beckett Plastics – Business Loan enabled the company to do a comprehensive refurbishment programme of three machines that mould its range of packaging. • Broder Metals – Business Loan to assist with a move to larger premises and to enable them to refit and refurbish the premises to their requirements www.finance-yorkshire.com

  21. Finance YorkshireEquity Linked Finance • Some start ups, largely growth, development capital or expansion • Types of investment packages include: • Loans with Profit Participation - for established businesses generating turnover of over £5m • Mix of Loan and Equity - for younger businesses with turnover of less than £5m • Equity only Investment - for early stage businesses with plans for rapid growth www.finance-yorkshire.com

  22. Finance YorkshireEquity Linked Finance Where investment made a difference • MTP Innovations - Using the £400k investment to expand its product range and customer base • Noel Village – Using the £750k investment to invest in new heat treatment • Magnomatics – Using the £1.1m (part of £2.5m package) to develop products, create new jobs and expand its global customer base. www.finance-yorkshire.com

  23. Finance YorkshirePortfolio performance to date.. • Finance Yorkshire has: • Completed 543 investments • Invested a total of £67.5m • Seedcorn Finance – 62 investments totalling £12m • Business Loans – 408 investments totalling £25.5m • Equity Linked Finance – 73 investments totalling £30m www.finance-yorkshire.com

  24. Finance YorkshireOur Investment approach Working alongside the commercial market; • Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow • Market making effect, making deals happen by spreading the risk with other investors and lenders • Co-investing with other lenders and funds www.finance-yorkshire.com

  25. Finance Yorkshire James TrowsdaleHumber Local Enterprise Partnership www.finance-yorkshire.com

  26. James Trowsdale Humber LEP Investment Manager

  27. About the Humber LEP • Role: To attract new investment and generate growth for existing businesses • Area: North Lincolnshire, NE Lincolnshire, Hull & East Riding • Business-led • Board of 16 provides leadership and direction • Chaired by Lord Haskins of Skidby • Supported by a small core staff and partners

  28. Realising potential of Energy Estuary • Enterprise Zones – 484 hectares • Regional Growth Fund - £66m+ • Business Loan Fund - £8m • EU Structural & Investment Funds – c£87m • Strategic Economic Plan – £62m request in 15/16

  29. Realising potential of Energy Estuary – Good news stories since November… • Siemens • Able Marine Energy Park • Hull – Selby line electrification • Hull: City of Culture 2017 • Expansion of Assisted Areas (to cover Scunthorpe) • Enterprise Zones extended until 2020 • City Deal • Growth Hub

  30. Humber LEP Business Loan Fund

  31. Business Loan Fund • £8m+ allocated to the Humber through the growing places fund • Loan funding for stalled capital projects • Open for applications • Process = EOI submitted & reviewed by Investment Board, best projects invited to submit full applications with supporting information. Due diligence carried out on shortlisted project. Contracts agreed.

  32. Business Loan Fund • Open to all businesses of any size and sector • Aim to create jobs as quickly as possible • Contribute to Humber economy • Ideally planning permission in place • Interest rate determined by EU Reference Rate • Capital projects e.g. Infrastructure & buildings machinery

  33. Business Loan Fund – Project Supported Europarc Village • £500,000 loan provided to build new access road, drainage and utility services • 6.5 acres of land opened up for development of hotel, restaurants, a public house (Greene King), nursery, gym

  34. Business Loan Fund – Project Supported Paneltex • £500,000 loan provided to acquire new plant and machinery, refurbish existing equipment and factory enhancements. • 34 jobs created

  35. Growing the Humber RGF Programme

  36. Growing the Humber (RGF3 programme) • £30m from the Regional Growth Fund (RGF3) • £20m - Humber wide Business Investment Grants for priority sectors and their supply chains • £10m - South Humber Bank Renewables Programme • Aims to create 1500 new jobs and lever £125m of private sector investment by March 2015. • Additional £1m from Growth Hub bid (part of £2.5m bid) • Complements RGF programmes in • North Lincolnshire (£10m) • Hull & East Riding - Green Port Hull (£25.7m)

  37. Decision making process • EOI submitted to Humber LEP – LEP/NELC Officer check for eligibility • If eligible – Full application form sent • Upon receipt of application checked by LEP/NELC Officers and appraised by Officer group from each Humber local authority* • Appraisal summary, application and supporting documents sent to Investment Board * • In principle decision made • Contract documents drawn up by NELC • Monitoring/claims by NELC * Due diligence potentially requested

  38. Business Investment Grant - Key stats • 400+ EOIs received (250+ invited to full application) • 150+ full applications received • 52 projects ‘live’ - £10.1m RGF, 850 jobs, £56m investment levered • 22 projects in contracting • 17 projects approved with conditions/due diligence • Funding still available

  39. Investment Levels and appraisal tests • Programme Investment ratio of 1 to 4. Therefore every £50,000 grant requires £200,000 investment from other sources. • The minimum level of grant which can be requested is £20,000 (£5,000 for renewables projects in N & NE Lincs). • The maximum level of grant is £2.5m –most applications to be substantially lower than this. • The level of grant is determined by state aid rules – this depends on location, type of business and size of company. • Assisted Area plays key role is determining grant level • Is the project viable and deliverable? • Spend must be in 2014

  40. Business Investment Grant – Burgess Pet Care • £80,473 grant (£804,734 total project cost) • 35 new jobs • Pet food manufacture • Project is to purchase and install a full packaging line offering more efficient production

  41. Business Investment Grant – Summerbridge Doors • £334,000 grant (£3,880,000 total project cost) • 35 new jobs • One of the UK's leading manufacturers of MDF vinyl wrap doors and accessories • Factory expansion from 45,000 sq ft to 83,000 sq ft.

  42. Business Investment Grant – Cablepoint • £21,600 RGF grant (£108,045 total project cost) • 5 new jobs • Manufactures bespoke cable assemblies, wiring looms, and control panels for a variety of industries such as Military, Medical, Automotive, Domestic and Agricultural • Purchase a machine that will remove the necessity to cut and tin wires by hand

  43. Business Investment Grant –Dong Energy • £1.1m grant • Supports the firm’s £11.5m plan to establish their offshore engineering and operations and maintenance bases at the Port of Grimsby and the Royal Dock on the Humber’s south bank. • An estimated 100 direct jobs are expected to be created by March 2016 • Another 100 to come later as part of ongoing developments. • More than 475 indirect jobs are set to be created in vessel and offshore related services

  44. Key Information • Information can be found on www.humberlep.org and https://www.nelincs.gov.uk/business/regional-growth-funding/employment-skills-development • Expression of Interest template • Eligibility Criteria • Programme Guidance • Contact the LEP team on tel: 01482 485260 or NELC on (01472) 325949 • Email – funding@humberlep.org Deadline for Expressions of Interest = Monthly deadlines

  45. Finance Yorkshire Seedcorn Fund Gerard ToplassFrillo Ltd www.finance-yorkshire.com

  46. Finance YorkshireBusiness Loans Neil Bangham & Richard StowWeedfree Limited www.finance-yorkshire.com

  47. Neil Bangham – Managing Director Richard Stow – Contracts Director 1967 – Weedfree 2002 – Weedfree-on-Track 2004 – Management Buyout (Railclear) 2011 – Finance Yorkshire (FY)

  48. Introduced to FY by Brown Butler Chartered Accountants Initial speedy application & acceptance process Despite tough challenges FY investment managers been extremely helpful Seasonal finance provided by FY in Winter/Early Spring during 2011, 2012, 2013 & 2014

  49. From Mid 2012 we have gone from strength to strength 2013 very successful, 2014 trading very well so far Would highly recommend FY services to other Companies

  50. Finance YorkshireEquity Linked Finance Mark de- Villamar RobertsEnvirodoor Ltd www.finance-yorkshire.com

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