The new facility allowed the client to acquire steel stock directly from a steel mill, which was previously not a viable source of supply due to cashflow constraints. In order for the client to secure the £800,000 required, Mark Grewer helped them show the potential lenders that cutting out the stockholders, and acquiring the steel stock directly from the steel mill, was a beneficial situation for all involved.

As insufficient security was available to meet the banks’ requirements, Mark assisted the client with making an application for half the necessary funds under the Enterprise Finance Guarantee Scheme, with the balance being provided by means of an overdraft. After negotiations with three lenders, Mark secured a deal with the client’s preferred option, Royal Bank of Scotland.

Project Butterfly was completed in August 2009, with the required funds successfully obtained. The client is delighted to be moving forward with the purchase of their new stock.

The package enabled the management to buy the assets from administrators KPMG Manchester, of Dams International Ltd safeguard the future of the company and 72 employees. In addition, the package, which was turned round within a week, came with an Enterprise Finance Guarantee (EFG) a government-backed loan and gave the management team the necessary headroom to complete the deal.

The funding facility also included the new ‘EFG top-up’ that now guarantees on ‘top-up’ invoice finance and overdraft facilities. Having been introduced in September 2009, the ‘EFG top-up’ provides a guarantee on invoice finance facilities, supporting an agreed additional advance on debtor books, to supplement the invoice finance facility already in place.

Venture was introduced to Dams Furniture through Sterling Corporate Finance that singled out Venture due to its proactive addressing of all issues and ability to finalise deals with a tight deadline. Graham Camm, a specialist in buying businesses from Administration, comments: “It is always extremely satisfying to assist a company in safeguarding its future and, in this case, the jobs of 72 people. Venture is always fantastic to work with and can act quickly to understand the needs of a business and turn a deal around within no time at all.”

Chris Scott, who runs Dams Furniture with his sister Melissa Moore, comments: “We required a financier who could turn a deal around quickly, and Venture’s approach meant that we could do just that. We needed to revise our current cost structure and operations to coincide with the current economic climate. The EFG was vital in completing the deal and has given us the added headroom to stabilise the company and get it back on its feet.”

Fraser Irvine, Venture Finance Business Development Manger comments: “I was delighted to support such a well established business which, like others, was forced into a position to revise its current structure. The EFG top-up was only implemented last week, so we are one of the first to offer the scheme. By using this, Dams Furniture will benefit from maximum working capital at a time when it needs it the most.”

For further information on Venture Finance please visit www.venture-finance.co.uk

About the EFG

The EFG was introduced in January and improves upon the Small Firms Loan Guarantee (SFLG) scheme. This Government-backed business loan is designed to help established, viable companies secure additional funding or working capital, and through Venture businesses can raise anything from 25,000 to 1 million with the EFG.

In 2008, Azurri consolidated its position as an IT supplier to the charity sector with the acquisition of Task Systems Ltd, a specialist provider of Toshiba-based solutions for over 15 years.

Currently turning over approximately £6 million a year, Azurri employs 50 people with a client base ranging from the British Heart Foundation, with 600 shops, through to Bethany Christian Trust, with 10 shops.
Managing director Alastair Petrie said: “We approached Barclays for finance to increase our marketing effort and to invest in research and development to support our growth in the charity sector.

“With the loan secured, we have won new customers ranging in size from a large nationwide charity through to a small furniture charity in the Midlands.”

Under the EFG scheme, Barclays lends money to its customers and the Government repays 75 per cent of the loan, and Barclays the remaining quarter, if the customer fails to repay.

Customers utilise the service M&A provide when the equipment that needs repairing or replacing is too large, too heavy, or too expensive to remove and repair off site. Quick turn around times and precision machining for repairs or modifications is often a driving factor for the clients who use M&A.

It often means working in very difficult and confined spaces and M&A, which works primarily in the petro chemical and marine sectors, has to design or adapt equipment for specific projects.

Their new 10,000 sq ft facility on a two acre site at Priory Park, Thornton, Milford Haven, is currently being fitted out and will significantly increase the company’s capacity and allow greater flexibility for workshop based activities and contract work.

The expansion is supported by the Welsh Assembly Government through the Single Investment Fund and will enable M&A to purchase a range of specialised milling and boring equipment to provide enhanced engineering services to clients.

Ieuan Wyn Jones, Minister for the Economy and Transport, said the Single Investment Fund was created to help small and large businesses in Wales access the necessary funds to help them grow and become more competitive.

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The STRIP (Steel Training Research and Innovation Partnership) project will make use of European Structural funds to support Welsh universities and colleges in improving the industry’s competitiveness, the Minister said.

It will ensure the higher level skills needed by the industry – providing Masters and Doctorate studies for graduates across Wales as well as training and up-skilling existing workers.

Led by Swansea University together with Bangor, Cardiff and Glyndwr universities, and collaborating with 22 companies who make up the partnership, the scheme will receive £4 million from the Convergence European Social Fund as well as funding from the university and industry partners.

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Welcoming the success of the scheme, Mr David said: “This is great news for the whole automotive industry - for manufactures and dealers, and, of course, for customers. Halfway through the scheme and with more than 7,500 vehicles bought, its clear that the scheme has been successful in providing a real boost for the sector.

“The automotive sector is a significant employer in Wales which has been under a great deal of pressure as a result of the economic downturn.

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Cool Planet, based in Higham Ferrers, provides renewable energy solutions and systems to domestic and commercial clients across the UK.

Steve Gray who runs Cool Planet, believes that ground sourced energy is the best way to heat buildings. He said: “Ground Source energy is a proven, reliable renewable energy solution suitable for many applications. We are committed to finding new, innovate ways to improve efficiency and energy savings in buildings while striving to reduce initial capital costs. The iNet grant will enable us to design and develop an integrated solution, which will lead to reduced costs for consumers.”

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East Midlands Renewable Energy Ltd (EMRE Ltd), based in Derby, is an engineering consultancy specialising in integrated control of renewable and sustainable energy systems for domestic and commercial properties.

Funded by the European Regional Development Fund (ERDF) and East Midlands Development Agency (emda), the Sustainable Construction iNet offers grants of between £3,000 and £10,000, along with assistance and expertise in research and development of new products, processes or services to companies in the construction sector.

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The fund will unlock the financial savings that can come from going green by developing an innovative financing framework to ‘pump-prime’ energy efficiency measures to cut carbon across London and money off fuel bills. The resulting guaranteed savings will then pay off the upfront loans to be ploughed back into the green fund.

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In rural areas in the North East where replacing affordable housing is difficult, new shared ownership properties will have to remain shared ownership to ensure future buyers also have a chance to step onto the property ladder.

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