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www.finance-yorkshire.comTel. 0845 649 0000 [email protected]
Finance Yorkshire Case Study
SNG Commercial Limited
It may be a business in its early stages, but an Equity Linked Investment from Finance Yorkshire has put SNG Commercial in an ideal position for growth.
Pictured (L-R): David Pugh, Director of SNG Commercial, Simon Gunter, Director of SNG Commercial, Peter Beresford of RedSky Corporate Finance, Duncan Firman, Gordons Solicitors, Katharine Braim of Finance Yorkshire.
The CompanyLeeds based SNG was established in 2010 by Simon Gunter to develop and supply a range of high performance, high value, liquid laundry detergents, as well as complementary fabric softeners and household cleaning products. It began trading in 2013, having developed, tested, manufactured and branded a range of laundry detergents aimed at a specific gap in the market – a high-performing product at a low value orientated price point. SNG has a highly-efficient supply chain which is capable of delivering nationwide to customers including Home Bargains and Fultons Foods.
The ChallengeThe company needed outside investment to invest in stock and develop customer awareness and confidence in its Muvo brand of bio and non-bio liquid detergents and fabric softeners. It is also aiming to enter the European market in 2015, where liquid detergents are
already preferred to alternative powder based detergents.
The SolutionA £400,000 Equity Linked Investment from Finance Yorkshire is enabling Simon and the team at SNG to grow customer awareness of the product through an integrated marketing campaign and development of the Muvo brand, to invest in stock and infrastructure and ultimately explore opportunities in Europe.
The Investment RationaleFinance Yorkshire Investment Manager Katharine Braim said: “The management team have incredible knowledge of the sector, and have shown considerable dedication in terms of understanding the market and end-user requirements, along with trends and product innovation and development. There is strong demand for a high performance product that can rival the well-known brands in the market,
at a value price point. SNG and the Muvo brand have proven that low priced products aren’t always associated with low performance products. In addition the business model is expandable and scale-able to Europe which offers exciting opportunities for the future of the business.”
Future ExpectationsAfter a hectic four years which have spanned research and development, testing, manufacturing and branding, SNG Commercial is well on the road to establishing a well-known brand in the detergents sector which is centred on a top quality product at an affordable price. The company is also ideally placed to take advantage of the anticipated switch from powder to liquid detergents, and in 2015 will explore the European market.
To find out more contact us on 0845 649 0000 or visit www.financeyorkshire.com
LeedsCity 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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