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www.finance-yorkshire.comTel. 0845 649 0000 [email protected]
Finance Yorkshire Case Study
Noel Village
Doncaster-based Noel Village is one of the UK’s leading independent foundries, its products used by valve and pump manufacturers around the world. A £750,000 Equity Linked investment from Finance Yorkshire will enable it to reach the next level of growth and development.
Pictured (L-R): Richard Edwards, Managing Director Noel Village; Paul Gower, Finance Yorkshire; David Fletcher, Chairman of Noel Village; Anthony Village, Executive Director Noel Village
The CompanyA family-owned business established in 1980, Noel Village has progressed from casting carbon steels for mining and engineering purposes to high specification steels for the oil, gas and nuclear industries. It is one of the UK’s leading low-volume stainless and high alloy steel foundries, and currently exports around 20% of its products.
The ChallengeHeat treatment of castings is currently sub-contracted as Noel Village does not have the necessary facilities on site. The ability to undertake this service in house would significantly reduce lead times for customers.
The SolutionA £750,000 Equity Linked investment will allow the business to invest in on-site heat treatment facilities, enabling
Noel Village to move forward with its strategy of becoming the UK’s leading high intregrity foundry.
In addition, the firm has further strengthened its management team by appointing former Sheffield Forgemasters Chairman and Chief Executive David Fletcher as Non Executive Chairman.
The Investment RationaleFinance Yorkshire Investment Director Paul Gower said: “This is a good opportunity for Finance Yorkshire to invest in an established family firm which has ambition to grow and is willing to strengthen its management and undertake significant investment.”
Future ExpectationsNoel Village Managing Director Richard Edwards said: “We believe the
future belongs to businesses which understand that quick turnaround and great service are priorities. Investing in heat treatment facilities means that customers will benefit from faster lead times, and we will be better positioned than ever to supply increased specification castings to the entire energy sector.”
The Equity Linked team provide investment from £100k to £2million.
To find out more contact us on 0845 649 0000 or visit www.financeyorkshire.com
SheffieldCity Region
For businesses generating a turnover of less than £5m with a shorter track record, we can offer a mix of Loan and Equity investment. We structure our investment to suit the company’s requirements, for example:
• Range typically from £250k to £750k
• Minority equity stake
• Loan capital with terms from 3 to 5 years
• No personal guarantees
• Typically unsecured
• A mix of cash pay interest and rolled up interest on the loan element
• Loan repayment holidays and tiered repayments to suit cash flow
For businesses at an earlier stage in their life cycle, with plans for rapid growth but with a small capital base, we typically invest in Equity only:
• Range typically £100k to £500k
• Minority equity stake
Equity Linked Finance - £100,000 to £2million
Meet the team...
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.
Andrew BurtonInvestment DirectorT: 01226 323737M. 07831 [email protected]
Duncan GrayInvestment ManagerT: 01226 323737M. 07808 [email protected]
Anne SalisburyBusiness Development ManagerT: 01226 323737M: 07713 308196 [email protected]
Darren MorrisInvestment ManagerT: 01226 [email protected]
George AyliffeBusiness Development ManagerT: 01226 323737M: 07921 [email protected]
Paul GowerInvestment DirectorT: 01226 323710M. 07718 [email protected]
Finance Yorkshire Equity Linked Fund can provide investment to selected businesses, management teams and entrepreneurs, from as little as £100k up to a maximum of £2m per company.We can tailor financial packages to suit individual needs. Below are three examples of the types of investment packages that we can make:
We can invest in much larger transactions alongside other finance providers, where eligible. For any Equity investment, the size of the equity stake will depend on a number of factors including the size of the investment, the perceived level of risk and the valuation of the company.
As shareholders, we have a vested interest in ensuring that the company succeeds, as we share in the company’s success. Our aim is to achieve a suitable mixed return from loan income
(i.e. interest, etc.) and from any capital gain on equity at exit. As part of an equity-linked investment, we may appoint a non-executive director to work with the company.
To find out more about Finance Yorkshire’s Equity Linked investments please contact us on 0845 649 0000 or email [email protected]
For profitable companies with an established track record and generating turnover of £5m or more, we can offer Loans with Profit Participation, for example:
• Range typically from £400k to £1m
• 10% pa fixed interest rate or 10% of net profit (whichever is higher)
• Up to 6 months capital holiday
• Single, profit-related payment at redemption
• No personal guarantees
• Typically unsecured
They benefit companies and owners in a number of ways including linking repayment terms to the financial success of the business, without any dilution of equity.
Loans with Profit Participation
Loan & Equity Investment Equity Only
1 Capitol Court, Capitol Business Park, Dodworth, Barnsley, S75 3TZ
www.finance-yorkshire.comTel. 0845 649 0000 [email protected]
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