Transcript www.finance-yorkshire.com

Finance Yorkshire
Welcome
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Finance Yorkshire
John Watson- Director
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Finance Yorkshire
Why 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
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Finance Yorkshire
Agenda
• John Watson, Director, Finance Yorkshire
• Alex McWhirter, CEO, Finance Yorkshire
• James Farrar - Local Enterprise Partnership
• Seedcorn Case Study – Hugh Rudden, Fullsun Photovoltaics
• Business Loans Case Study – Kevin Hollinrake, Vizzihome
• Equity Linked Finance Case Study – Paul Stark, Aerocover
• Questions & Answers
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Finance Yorkshire
Alex McWhirter - CEO
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Finance Yorkshire
What we are…
£90m Venture Capital and Loan Fund
Finance sourced from:
£30m European Regional Development Fund
£15m Yorkshire Forward/Business Innovation and Skills
£45m European Investment Bank
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Finance Yorkshire
Our 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
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Finance Yorkshire
Our investment performance so far...
• 346 investments totalling over £39 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
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Finance Yorkshire
Investment Profile
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Finance Yorkshire
Investment impact...
• Created or safeguarded 5620 jobs
• Over £64 million Private Sector Leverage, resulting in £2
levered for every £1 invested
• £44.2 million in value added sales
• Legacy fund to be invested in region’s businesses in line
with original objectives - to be utilised after 2019
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Finance Yorkshire
Investment performance by location...
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Finance Yorkshire
Investment performance by location...
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Finance Yorkshire
Investment performance by sector...
Sector Analysis – All Funds
Sector
Application Process (%)
Investments (%)
Business Services
12%
18%
Engineering / Industrial products / Materials
24%
25%
Financial Services
1%
1%
Healthcare / Pharma / Bioscience
14%
7%
ICT / Software / Telecoms / Media
21%
12%
Leisure / Hospitality
1%
2%
Renewables / Energy / Cleantech
6%
7%
Consumer / Food & Drink
6%
10%
Other
15%
18%
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Finance Yorkshire
Investment 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
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Finance Yorkshire
Three portfolios
• Seedcorn Finance
• Business Loans
• Equity Linked Finance
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Finance Yorkshire
Seedcorn Finance
• Start up or early stage innovative businesses
• Involves strong technological ‘know-how’ and credible
founders
• First products or services developed with potential for rapid
growth
• Can invest up to £780,000 over the lifetime of the business
through equity-based, tranched investments
• Investments of £2m+ when syndicating with other funds
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Finance Yorkshire
Case Study – Carlton Manufacturing
 Start up that develops sustainable
construction materials
 £675,000 Seedcorn Fund investment
 Company moved premises and expanded
workforce as a direct result of investment
 The company has rapidly growing revenues
and has plans to develop new products
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Finance Yorkshire
Business Loans
• Fixed rate loans typically between £15,000 - £150,000 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
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Finance Yorkshire
Case Study – The Beautiful Meme
 Designers and writers that specialise in
rebranding and advertising
 £40,000 Business Loan to help the
company expand its portfolio
 The finance has enabled the company
to employ a new designer and
copywriter and meet additional
overhead costs
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Finance Yorkshire
Equity Linked Finance
• Equity-linked investments from £100,000 to £2m and
Mezzanine loans
• Some start ups, largely growth, development capital or
expansion
• Work alongside other finance providers to invest in larger
transactions
• Tailored deal structures to give maximum benefit to the
investee companies
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Finance Yorkshire
Case study - Envirodoor
 An international manufacturer and
supplier of specialist and hygienic
doors
 £600,000 Equity Linked investment to
support the company’s marketing,
recruitment and research and
development programmes
 Looking to grow its distribution
network and to build relationships with
key partners
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Finance Yorkshire
Portfolio performance to date..
Finance Yorkshire has:
• completed 346 investments
• Invested a total of £39.43m
Seedcorn Finance – 44 investments totalling £7.93m
Business Loans – 270 Investments totalling £15.00m
Equity Linked Finance – 32 Investments totalling £16.50m
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Finance Yorkshire
Our 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
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Finance Yorkshire
James Farrar
The York, North Yorkshire and East Riding
Local Enterprise Partnership
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The LEP
Plan
Small
Business
Growth
Vision:
Grow
Business
Faster
Agri-Innovation
Potash
Inward Investment
Major
Growth
Opportunities
Strong Voice
for Local
Business
Small Business
Growth
Delivered to date:
- 1,300 Business Supported
- £2.2m Skills funding secured
- 18,000 Businesses engaged
- 108 sources of support promoted
- 73 Business Mentors attracted
- 39 Networks in partnership
- Business Support Seminars
- Online Webinars developed
Businesses who get external help
perform better than those that
dont
Good quality, easily accessible
business support
not reliant upon public funding
Major Growth
opportunities
Drax
£700m Biomass Conversion
£1bn Carbon Capture & Storage
FERA
Science & Innovation Campus
Potential 800 Jobs
York Potash
£2.5bn Investment
£2.5m Whitby Business Par
c.4000 jobs
Forward Strategy
5 Year Growth Strategy
A compelling vision for the region
- Taking opportunities
- Addressing barriers
Small businesses key
to growth of our economy
Central Govt Single pot
European Funding
Public / Private partnership
LEP best placed to coordinate
Business support
York Means Business website
York Means Business web portal is supported and led
by the York Business Team of the City of York Council.
The site offers start-ups, growing, established and relocating
organisations and businesses a wealth of information and
signposting to appropriate knowledge, funding, assistance
and support.
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Finance Yorkshire
Seedcorn Fund Testimonial
Hugh Rudden, Fullsun Photovoltaics
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Finance Yorkshire
Business Loans Testimonial
Kevin Hollinrake, Vizzihome
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Weekly Sold Report
How it Works
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Information from the Internet
Covers England, Ireland, Scotland and Wales
Very accurate – 97% UK Agents
2m records each week
Data added, cleansed and de-duped weekly
Sales data from Aug 08
Lettings data from May 09
Current users
Full Property List – For Sale
Property History
Vizzihome Data USPs
• Scale: largest database of UK homemovers
known
• Quality: very high quality data through
algorithms and de-duplication policies
• Change: constantly evolving and updated
• Permissions: DPA compliant
• Accessibility: easy to use and simple to supply
Why use this data?
• Home moving data is very powerful:
– Average householder spends twice as much on
home in year 1 than in any subsequent year
– Average of £8,000 spend in first 3 months;
£15,000 in first 12 months
– Approx 1.3m home owners move every year,
spending £2.2bn on associated household goods
– 75% of consumers polled would welcome relevant
marketing
What for?
Activity
Definition
Cost per record
Acquisition
Marketing to those who are not
existing clients/customers to
acquire new business
10-20p
Retention
Overlay data with existing
database to market to existing
clients/customers with the aim
of retaining business whilst
stimulating sales
20-50p
Hygiene
Detecting and removing data
which is out-of-date, redundant
or incomplete
5p
Why Finance Yorkshire?
For more information on Vizzihome please contact :
Will Lownsbrough, Commercial Director
07850 313 887
[email protected]
Finance Yorkshire
Equity Linked Finance Testimonial
Paul Stark, Aerocover
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The investment journey
The spin out
The introduction
The Process
Application
More Info
Investment
Meetings
Negotiations
Acceptance
and
DD
Completion
Challenges
Experience
Finance Yorkshire
Future work…
• Work collaboratively with the York, North Yorkshire and
East Riding LEP and Local Authorities
• Creating the next gap fund for SMEs after 2014
• Develop the Finance Yorkshire brand and a recognised
provider of growth finance to SMEs
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Finance Yorkshire
Making 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.
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Finance Yorkshire
Q&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 Neon Capital Partners 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 Services Authority.
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