finance yorkshire welcome

Finance YorkshireWelcome

www.finance-yorkshire.com


Finance YorkshireJohn Watson - Director


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


Finance YorkshireAgenda

• John Watson, Director, Finance Yorkshire

• Alex McWhirter, Chief Executive, Finance Yorkshire

• Tim Frenneaux, Local Enterprise Partnership

• Paul Johnson, Smartgate Solutions - Seedcorn Investee Company

• Tom Sharp, The Beautiful Meme - Business Loans Investee Company

• Martin Gernon, Centre Stage Uniforms - Equity Linked Finance Investee Company

• Questions & Answers


Finance YorkshireAlex McWhirter – Chief Executive


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


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


Finance YorkshireOur investment performance so far...

• 536 investments totalling over £66 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


Finance YorkshireInvestment Profile


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


Finance YorkshireInvestment performance by location...

Locations Amount Invested (000) Investments (%)

South Yorkshire £ 27,934 42%

North Yorkshire £ 10,122 15%

The Humber £ 4,075 6%

West Yorkshire £ 23,754 36%

Yorkshire & Humber Total £ 65,885 100%


Finance YorkshireInvestment performance by location...

Locations

AmountInvested

(£000)

Investments(%)

AmountInvested

(£000)

Investments(%)

AmountInvested

(£000)

Investments(%)

Seedcorn Business Loans Equity

South Yorkshire £ 6,920 58% £ 9,824 39% £ 11,191 39%

North Yorkshire £ 1,070 9% £ 3,447 14% £ 5,605 20%

The Humber £ 450 4% £ 2,175 9% £ 1,450 5%

West Yorkshire £ 3,564 30% £ 10,034 39% £ 10,156 36%

Yorkshire & HumberTotal £ 12,004 100% £ 25,480 100% £ 28,402 100%


Finance YorkshireInvestment performance by sector...

Sector Analysis – All Funds

Sector ApplicationProcess (%)

Investments(%)

Business Services 13% 17%Engineering / Industrial products / Materials 25% 27%Financial Services 2% 2%Healthcare / Pharma / Bioscience 12% 5%ICT / Software / Telecoms / Media 19% 12%Leisure / Hospitality 1% 2%Renewables / Energy / Cleantech 6% 7%Consumer / Food & Drink 7% 10%Other 16% 18%


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


Finance YorkshireThree portfolios

• Seedcorn Finance Up to £780k

• Business Loans £15k - £250k

• Equity Linked Finance £100k - £2m

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


Finance YorkshireSeedcorn Finance

Where investment made a difference


Carlton Manufacturing - Moved to larger premises and radically changed its manufacturing process following Finance Yorkshire investment

Xeros – Finance Yorkshire invested a total of £1.45 million over three funding rounds. Market capitalisation of £80m when admitted to AIM in March 2014

Frillo – A visionary new innovative one stop shop for business supplies with great growth opportunities

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





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

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





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.

Finance Yorkshire has:

•Completed 536 investments

•Invested a total of £65.8m

Seedcorn Finance – 62 investments totalling £12.0m

Business Loans – 406 investments totalling £25.4m

Equity Linked Finance – 68 investments totalling £28.4m

Finance YorkshirePortfolio performance to date..



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


Finance Yorkshire

Tim FrenneauxYork, North Yorkshire

& East Riding Local Enterprise Partnership


Finance YorkshireSeedcorn Fund

Paul Johnson Smartgate Solutions



Tom SharpThe Beautiful Meme



Martin GernonCentre Stage Uniforms

Inve

stee

Busin

ess


Finance YorkshireFuture work…

• Work collaboratively with the York, North Yorkshire & East Riding Local Enterprise Partnership and Local Authorities

• Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs


Finance YorkshireMaking an application

• Call us to make sure it’s eligible 0845 649 0000 or make enquiry via website www.finance-yorkshire.com

• An Investment Manager will contact you to discuss.• Complete Application Form & the supporting

information when advised by the Investment Manager.

http://www.finance-yorkshire.com/

Finance YorkshireQ & A


Finance Yorkshire Ltd is a company limited by guarantee (Registered No 07075478). Finance Yorkshire Ltd (0845 649 0000) comprises three sub funds, Finance Yorkshire Equity Fund, which is managed by Viking Fund Managers Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business

Loans Limited and Finance Yorkshire Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Conduct Authority.

finance yorkshire welcome

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