finance in dorset 2017 - established (>2 years) session

PowerPoint Presentation

Finance in DorsetMartin Aldridge, Partner

Businesses trading for > 2 years.

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Structure of morningBackground, Equity, Debt and Business Support (8.30am to 10am)Dorset Chamber Banks: an overviewEquity and GrantsGrowth Hub

Coffee Break (10am to 10.25am)Funding, Business Support, Investment Ready and SME perspective (10.25am to 12noon)Start Up (trading for < 2 years) or Established Business Lunch and Networking (12noon to 1pm)

pkf-francisclark.co.uk

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10 minute presentations on:Crowd unsecured debtP2P secured debtGrowth Capital (equity)Venture Capital / Private EquityLSE/ Public listingInvestment ready

SME Perspective

Funding and support for business > 2 years old


Marketplace Lending Unsecured LoansSarah Beard Business Development Manager South West

3rd March 2017

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Online platform specifically designed to revolutionise traditional banking methods. Our priority is to secure a better deal for everyone Access in as little as 1 week, to fast affordable business loans for working capital, expansion, tax funding and much more Marketplace lenders are not banks. Put simply, we directly connect business borrowers looking for finance to grow their business, with investors who want to lendWhat is a Market-place lender?

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A simple model: Lenders can spread risk by lending small amounts to hundreds of businesses

Traditional lending

Investors have control over their investment

Marketplace lendingLoan partsLoan partsLoan partsLoan partsLoan partsLoan parts

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Funding Circle Who are we?Were passionate about small businessesThousands of people, financial institutions and the British Business Bank have lent over1.8billionto British businesses since 2010. At rates that suit everyone.

3 Founding Members set up in 2010

Over $2.5 billion lent worldwide

600 Staff in the UK

300 Staff in CE/USA

Aim is to become the leading global market-place for investing and borrowing for SMEs

Funding Circle is the leading global lending platform for small businesses8October 2013Launch in the US

October 2015Launch in Germany, Spain & Netherlands

Originated over $2.5B to tens of thousands of small businesses since 2010

Filling The Cashflow Funding GapAt Funding Circle, we are committed to helping you:

Grow your business

Boost working capital

Cover one-off business costs

Buy an asset

Develop a property

Hire extra staff

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Unsecured Loan 5k - 350kSuitable for a wide range of purposes6 months to 5 year termFixed interest rates from 4.9% No ERPs

Secured Loan 150k - 1mAll asset security agreementCharge on specific properties or assetsProducts

150k-3mDevelopmentCommercialInvestmentFixed interest ratesNo early repayment fees

Property Finance

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Any Sector, Any Purpose

Affordability still keyWe will try to do the deal if we can 11

Funding Circle Top DealsGarage repair centre. Borrowed 52,000 (7.5% rate) 60 months. Risk Band A+Raising funds to purchase new equipment, plus marketing and recruitment spend

Haulage company. Borrowed 30,000 (10.5% rate) 60 months. Risk Band BTo purchase new equipment and help with cashflow

Hotel. Borrowed 205,000 (7.5% rate) 60 months. Risk Band A+Working capital and wanted to carry out refurbishments

Scaffolding business. Borrowed 298,000 (9% rate) 60 months. Risk Band ATo purchase assorted scaffolding equipment for new and ongoing contracts

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Underwriting - Simple Credit CriteriaA minimum of 2 years trading historyAt least 1 year of filed or formally prepared accountsNo outstanding CCJs larger than 250

What We Look ForSole traders, partnerships, LLPS and Limited companies eligible Trading for 2 years with at least 1 years of filedaccountsClean personal credit no CCJs, CVA, CVL or liquidated companies within past 6 yearsNo consecutive lossesBeneficial ownership in UKNon limited must be a home ownerLimited companies will only lend up to 50k for non homeowner

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In 2013/14 the British Business Bank lent Funding Circle 60m, which has been channeled into more than 10,000 businesses across the UK. To this day, 10% of every loan funded on the partial loan marketplace is financed by the UK government In January 2017 Funding Circle proudly announced it had secured a further 40m from the government to continue to support UK SMEs

The Governments commitment to supporting SMEs through Funding Circle

Thank you for listening

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P2P Secured DebtDavid BrownManaging Director, Folk2Folk

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Agenda

What is P2P secured debt?

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Agenda


Individuals lending money

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Agenda


Individuals lending moneyTypically faster

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Agenda


Individuals lending moneyTypically fasterBacked by collateral

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Agenda


A FAIR way of enabling individuals to lend money to others while mitigating the risk of default by providing collateral.

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We want to offer the best protection for Borrowers & Lenders

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Fully authorised by FCA

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133m lent so far

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The Only P2P with branches.

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Yes we canNeed a quick decision Get a yes or no within 24-48 hoursNeed funds within weeks rather than monthsTime poorWearing many hatsTurned down by their bank

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Yes we canNeed a quick decisionGet a yes or no within 24-48 hoursNeed funds within weeks rather than monthsFunds within 7-10 daysTime poorWearing many hatsTurned down by banks

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Yes we canNeed a quick decision Get a yes or no within 24-48 hoursNeed funds within weeks rather than monthsFunds within 7-10 daysTime poorEasy applicationWearing many hatsTurned down by banks

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Yes we canNeed a quick decision Get a yes or no within 24-48 hoursNeed funds within weeks rather than monthsFunds within 7-10 daysTime poorEasy applicationWearing many hatsSimple and straightforwardTurned down by banks

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Yes we canNeed a quick decision Get a yes or no within 24-48 hoursNeed funds within weeks rather than monthsFunds within 7-10 daysTime poorEasy applicationWearing many hatsSimple and straightforwardTurned down by banksWe dont follow same judgement criteria

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Well sort out the finance so you can focus on your business.

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If you believe you can, we believe you can.

We believe in you. 32

Simple process1

Apply online, call us or drop into a branch

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Simple process1

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Apply online, call us or drop into a branchDecision within 24-48 hours

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Simple process1

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Apply online, call us or drop into a branchDecision within 24-48 hoursFunds released in 7-10 days

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Amount: Min 25,000Max 60% LTV Duration:Fixed or flexible loansSecurity:Land or property (not your home)Cost*:Interest only loans at 5.5% or 6.5%2% set up fee, 1% annual service chargeStraightforward loans* 3rd party fees and disbursements also apply

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A bit about us

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Your property against which the loan is secured could be at risk if you do not meet payments.

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Edwin Davies, [email protected] 07880 384983

Introduction to BGF

Greg Norman, Investor

Growth Capital Investors

BGF is an investment firm that provides growth capital of 2m - 10m to UK businesses with turnover of 5m - 100m.

Who we are. Funding for growth and equity releaseInitial investment of 2m 10m for a minority stakeInvesting into existing businesses typically 5-100m turnover Long-term and patient capital, no forced exit Access to huge network and supportFast and focused investment process

Providing capital to accelerate delivery of your plan, with our support but not interference


BGF in numbers2.5bn total fund1.1bn invested to date160 total current investments 102 non-executives introduced40% maximum stake9 investors in the South West team (offices in Bristol and Reading)9 UK offices5m minimum turnover thresholdThe most active investor in our spaceAccess to our Talent NetworkAlways a minority investorSector Agnostic


Equity providersWho does what and where does BGF fit in?friends & familylisted marketsprivate equityventure capital & crowd funding

Growth capital: Long term equity funding that allows a business to accelerate its expansion, manage the risks of growth in a sustainable way, keep control, and work in partnership with an investor to build shareholder value.Typical uses:hiring people investing in systemssupporting an export drivebuying new plant and machineryfunding an acquisitionnew store roll-outstrengthening the balance sheetcash to de-risk/realign existing shareholders


Day 1 investment of 2m-10mCash-in: to support long term growthCash-out: for existing shareholders Equity stake of up to 40%Always a minority partner you retain control

What we can offer. Working alongside the banks, BGF provides growth capital in a way that meets companies needs.

No closed fund pressuresPatient capital. No drag rights, no forced exit

Ability to follow our moneySignificant capital and the ability to take a longer term view. No need to change horses mid-race


Fast and focused investment processMinimises disruption and fees

What we can offer. Working alongside the banks, BGF provides growth capital in a way that meets companies needs.

Flexible structures equity / loan notesMeets the needs of the company and shareholders

Fair legal approachLess onerous investor legal protections

More than moneyAccess to impressive network and support


May 20124.0m

Online garden products retailer

Reading

December 20123.5m

Niche developer of mobile phones for major brands

Reading

South West Portfolio.

December 20127.0m

Design & manufacture of high composite pipes for oil & gas

Portsmouth

April 20133.9m

Design, manufacture & distribution of branded travel products for kids

Bristol

April 20144.0m

Cloud based IT services to the public sector

Corsham

August 20148.0m

Manufacturer & retailer of luxury kitchens

Devizes

August 20143.6m

Sustainable energy business that designs & installs systems

Tetbury

August 20146.0m

Furniture retailer with 40 stores across the UK

Slough


April 20169.0m

Production of high quality, bespoke technical fabrics

Bridgwater

August 20162.0m

Liquid waste removal and drainage services

Cardiff

August 20162.0m

Data analytics

CorshamSouth West Portfolio.

October 20163.0m

Retailer of solid wood kitchen worktops

Gloucester

October 20147.0m

IT managed services and cloud hosting

Cirencester

March 20154.0m

Communications infrastructure and outsourced IT services

Chippenham

July 201510.0m

Multi-channel retailer of clothing, footwear, household and fishing tackle products

Brecon

January 20164.4m

Web-based email marketing solution

Oxford


BGF South West and South Wales Team

James AustinInvestor07872 819093Greg NormanInvestor07557 747302Edwin DaviesInvestor07880 384983

Paul OldhamRegional Director07887 657697

Dan TapsonInvestor07964 904443

Ned DorbinInvestor07800 682195

Alex GarfittInvestor07770 582021

Alex SnodgrassInvestor07766 781923

James SkadeInvestor07967 816583


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FINANCE IN DORSET March 2017

JONATHAN SIMM

Regional Investment for Growing Businesses

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OverviewBased in Southampton

Only invest in Southern England

Equity investment of 1 - 4 million

Highly experienced private equity team

Altitude is not a tax driven fundA regionally based private equity fund investing in established businessesSmall team enables fast decision making


Investment Strategy

Regional generalist investor

Strong, ambitious management teams who are receptiveBuilding a diversified portfolio of businessesTypically 3-5 year investments but flexibleTargeting established companies with a minimum 2m turnover, 200k EBITDA and cash generativeDo not invest in MBIs or property developmentDevelopment capital, MBOs and shareholder restructuring

Regional Investment for Growing BusinessesAltitude as a Strategic Partner

Interested Investor involvement in strategic decisions but not operations unless requested

Developing and driving clearly defined growth strategies

Supporting management to provide the resources for growthBoard position on all investee companiesKeeping a clear board focus on creating value

Improving corporate governance and management information


Is Growth Funding Available?Equity investment for smaller businesses is available

Altitude seeks alignment of interests with other shareholdersAlignment of goals is key equity risk v bank riskAlways prepared to discuss most appropriate funding for businessesEquity investment does not mean losing control of your business

Should be relationship driven and adding value

Regional Investment for Growing BusinessesContactsJonathan SimmPartner

[email protected] Simon WhitePartner

[email protected] SyvretBusiness Development Partner

[email protected] Partners LLPKenneth Dibben House, Enterprise RoadSouthampton Science Park, Southampton SO16 7NSTel: 023 8000 2030www.altitudepartners.co.ukAltitude is a member of the British Venture Capital Association and regulated by the Financial Conduct Authority


Supporting small and mid cap growth

March 2017

Claire Dorrian

Introduction

EU RegulatedNot publicExchange regulatedMarket designationOfficial List & EU RegulatedAn attractive platform for growing businesses from any sector or geographical location to raise capital throughout their business lifecycle - providing access to a broad investor base within a balanced regulatory framework & the opportunity to improve their visibility with investors & stakeholders.

Private Equity

Venture CapitalSeed Capital

Business Angels

Friends Family

Start - Up

Early StageExpansionConsolidation & further capital raisingDiversification of investors, M&A and International Expansion

Concept & seed stage

Funding requirement

500k1m50k150m1bn

Strategic consideration

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Source: Bloomberg and Dealogic, January 2017Further Issues on London Stock Exchange IPOs on London Stock Exchange

Number of FIsMoney raised via FIs ($m)Main Market AIMMain MarketAIM201517927047,4617,633201616331827,6885,243% change-9%+18%-42%-31%

Number of IPOsMoney raised at IPO ($m)Main MarketAIMMain MarketAIM2015623119,376908201627386,0951,496% change-58%+23%-68%+65%

Challenging IPO Markets in 2016But a positive year for AIM

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Source: LSE statistics, 31st December 2016*25 companies either suspended or undetermined valueAIM - 100 billion raised since launch982 companies*, aggregate value of 80bn (173 Intl companies)*ICB industry classificationSince 1995 over 100bn raised in total (58bn through further issues)Profile of AIM CompaniesAdmissions to AIM 1995 to 2016Industries* Represented by Number of CompaniesFundraisings on AIM 1995 to 2016

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Benefits of Listing in London

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460+COMPANIES

25COUNTRIES

170,000EMPLOYEES

39 bnAGGREGATE REVENUE

250+ IINVESTORS & ADVISORSELITE Company Transactions45216PE dealsBond issuancesAIM Listed ELITE Companies120M&A / JV deals

ELITE Supporting Growth CompaniesELITE prepares companies for the next stage of by offering enterprises improved access to sophisticated skill-sets, networks and a diversified capital pool.ELITE is dedicated to ambitious companies to share best practices and enhance long-term growth opportunities also through the understanding of financial markets.

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PHASE 1 A comprehensive training programme for founders and managers to stimulate cultural change and evaluate long term financing opportunitiesPHASE 2 Progressive adoption of new management practices in order to be prepared to deal with investors

PHASE 3 Capitalize on the benefits associated with the new model and access new business, networking opportunities and funding options

2 YEARSNo time limitContinued access to the entire ELITE Community across Europe via the online platformELITE A 3-Phased Programme

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Legal Disclaimer

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Investment ReadyAndrew Killick

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Funding options


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Business Strategy Business PlanWhat are you trying to achieve?Thinking and evaluation timeDocument the assumptionsFinancials should follow the narrative


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ManagementRoles and responsibilitiesAny changes or additional requirements?Track recordPersonal investment/commitment


The Business Case


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The numbersMatch funding to cash requirements and business modelMonthly profit and loss, cash flow and balance sheet projectionsReviewCash headroom and sensitivities


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Investment ready - housekeepingLicences / contracts / IPRBooks and records in order and up to date?VAT, PAYE/NI, Corporation tax Statutory Accounts/management accountsWebsite


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Requirements: EquityEquity funder requirements growthExit route and returns to the investorInvestors expertise vs. loss of independence?Be prepared to discuss valuation


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Requirements: GrantsProject eligibility sector, size, locationTimescale prescriptive, process and panels Match fundingneed for grant versus viable propositionOn going requirements


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Requirements: DebtServiceability & HeadroomSecurity / Personal Guarantees Conduits for government initiativesCovenants achievable / appropriate?


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Investment ready - ConclusionsSuitable fundingRobust Business case and appropriate ManagementDetailed financial projections and documented assumptionsKnow the deal breakersAllow sufficient time


Paul R. Booker

Finance in the South West wrap upMartin Aldridge, Partner

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SummaryDorset is a great place to do business and has great businessesDorset is full of entrepreneurial spirit (businesses and funding options)Funding and business support herehttp://www.francisclark.co.uk/news-views/blogThank you


Presentations

And more (24 presentations in total, covering full range of funding and business support options)


Structure of morningBackground, Equity, Debt and Business Support (8.30am to 10am)Dorset Chamber Banks: an overviewEquity and GrantsGrowth Hub

Coffee Break (10am to 10.25am)Funding, Business Support, Investment Ready and SME perspective (10.25am to 12noon)Start Up (trading for < 2 years) or Established Business Lunch and Networking (12noon to 1pm)


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