News

Carbon-negative rum producer Two Drifters Distillery has secured a loan from the British Business Bank’s South West Investment Fund (SWIF), via appointed fund manager, The FSE Group, enabling the business to increase production capacity and expand trade distribution in both domestic and international markets.

The Devon distillery is a rum producer making its spirit entirely from scratch — fermenting, distilling, ageing and bottling on-site. Two Drifters operates an all-electric distillery powered by 100% renewable energy and applies a self-imposed internal carbon tax to guide procurement and operations toward the lowest-carbon options available. This framework positions the brand as one of the UK’s most sustainability-led rum producers.

The loan will allow the distillery to scale production to meet rising demand from the on-trade and retailers, and support continued overseas expansion, where interest in British rum — and sustainable production — is growing.

Co-founder Dr Russ Wakeham said:

“This support comes at exactly the right moment. Demand for our rum is increasing in the UK and internationally, and this loan allows us to build stock, strengthen production and keep full control of the business as we grow. The South West Investment Fund understands the needs of manufacturers, which makes it an ideal fit for us.”

Co-founder Gemma Wakeham added:

“We’ve always believed that British rum can stand alongside the best in the world — and that it can be made more sustainably. Running an all-electric distillery, using renewable energy, and applying our own internal carbon tax keeps us accountable to that. This funding will help us produce more, serve more customers and build the Two Drifters brand across new markets.”

Investment Manager at The FSE Group, Hannah Sprague added:

"Two Drifters is a great example of a South West business combining innovation with sustainability. Their approach to carbon-negative production and renewable energy is impressive, and we’re pleased to support their plans to grow both in the UK and overseas. It’s exciting to see businesses like this driving positive change in the drinks industry."

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million.

Edinburgh based media production company LS Productions is targeting more global contracts after delivering high-profile campaigns for top brands, including recent work for Glenmorangie featuring Harrison Ford, as well as expanding into original content following the release of ‘Irvine Welsh - Reality is Not Enough’, which closed this year's Edinburgh Film Festival. 

The 360 production company has successfully secured a £800,000 growth loan from the British Business Bank’s Investment Fund for Scotland via appointed fund manager, The FSE Group, to build on its successes to date and expand its reach beyond Scotland.   

Founded in 2006, LS Productions is one of the UK’s largest independent production services companies, delivering high-profile campaigns and productions for some of the world’s biggest brands, agencies and studios including Nike, Google, Dior, and Apple TV. The experienced team has produced a variety of Grammy-nominated, BRIT, and BAFTA award-winning work across fashion, advertising, film, and TV for clients all over the world. 

LS Productions provides end-to-end production management, as well as a location and logistics database via its proprietary, AI-driven platform.   

The funding will be used for a range of activities including sales & marketing initiatives; new staff hires and scaling of proprietary technology. 

Marie Owen, CEO and co-founder of LS Productions, said: “The goal is to take our award-winning capabilities into new markets and this loan will allow us to accelerate our growth plans significantly, ultimately enhancing our ability to secure major international productions. Creative industries are a hugely important contributor to Scotland’s economy, and we are excited to use this investment to continue driving innovation, create more jobs and encourage even more major brands to work with a Scottish-based production company.” 

David Young, Investment Manager at The FSE Group, commented: “LS Productions is an award-winning production company with a strong track record of delivering high-profile projects for key industry players. Expertise across multiple industry segments position this talented and experienced team to capitalise on the opportunities in this multi-billion-pound industry and we look forward to working with them as they continue their growth journey.” 

LS Productions’ focus on an ambitious global growth trajectory will in turn help strengthen Scotland’s production infrastructure and economy by creating jobs, supporting local talent, creating value across the supply chain and reinforcing Scotland as a world-class filming destination and production control hub. 

Sarah Newbould, Senior Investment Manager at Nations & Regions Investment Funds, the British Business Bank, added: “LS Productions has built a strong reputation from Scotland, working with some of the biggest names in film, fashion, and advertising. Its plans to expand globally while continuing to invest in people, technology, and local infrastructure are exactly the kind of ambition the Investment Fund for Scotland was designed to support. This funding will help create new opportunities for Scottish talent and strengthen the country’s position on the global production stage.” 

The purpose of the British Business Bank’s £150million Investment fund for Scotland is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across Scotland. The fund will increase the supply and diversity of early-stage finance for smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.  

PALLITE Group Ltd, the Wellingborough-based manufacturer of sustainable supply-chain products, has achieved significant international growth with support from The FSE Group. Since receiving its first Midlands Engine Investment Fund (MEIF) loan via FSE in 2021, PALLITE has increased staff numbers by over 30%, expanded into six new overseas offices, and boosted global sales by 125%.

The MEIF funding enabled PALLITE to maintain momentum during a challenging period marked by COVID-19 and Brexit, while advancing its strategic expansion plans. Alongside its UK manufacturing base, the company now also operates facilities in Milwaukee and Belgium, and will commence manufacturing in Surabaya, Indonesia in early 2026.

PALLITE’s commitment to sustainability has earned it multiple accolades, including the King’s Award for Enterprise in Innovation (2023), the UK Warehousing Association Sustainability Award (2022), and the Prix Stratégies Logistique de l'Innovation Durable (2025) in France. Its innovative honeycomb cardboard pallets, crates, and PIX® storage solutions deliver significant carbon footprint reductions, helping businesses address Scope 3 emissions and meet evolving ESG requirements.

Recent regulatory developments, such as the UK Government’s Extended Producer Responsibility (EPR) for Packaging fees coming into effect in 2025 and 2026, are accelerating demand for eco-friendly solutions. PALLITE is well positioned to support companies transitioning to sustainable practices, offering products that weigh over 80% less than traditional wooden pallets—delivering cost efficiencies and substantial CO₂ savings.

Robert Audas, Chairman of PALLITE Group Ltd, said: “The MEIF funding from FSE enabled PALLITE to sustain momentum across our existing markets while continuing to advance our strategic expansion plans. During a period of significant uncertainty arising from both COVID-19 and Brexit, FSE provided the crucial stability and confidence needed to support our UK manufacturing operations and remain on course with our growth objectives, including the successful opening of our manufacturing facility in the United States in 2022.”

Chris Bailey, Investment Manager at The FSE Group, added: “PALLITE is an outstanding example of how innovative, sustainability-driven businesses can scale rapidly with the right financial backing. Since our first investment in 2021, the company has achieved exceptional growth in sales, employment and international footprint, while remaining firmly committed to reducing environmental impact. We are proud to have supported PALLITE on its journey and look forward to seeing the impact of its next phase of global expansion.”

With a customer base that includes many of the world’s leading brands and top global logistics providers, PALLITE’s next phase of growth will focus on internationalising its product lines and investing in new designs to meet evolving market needs. The company continues to demonstrate how British manufacturing innovation, backed by targeted growth finance, can compete and lead on a global stage.

Springpod, the award-winning careers technology platform, has secured a second £650,000 loan from the Greater London Investment Fund (GLIF), managed by The FSE Group, to fuel its next phase of growth and innovation.

Springpod delivers a market-leading digital platform offering virtual work experience programmes, university subject tasters, apprenticeship pathways, and recruitment solutions. The company’s services, provided free to students aged 14–18, empower schools to meet the Gatsby Benchmarks and advance world-class career guidance across England.

Since The FSE Group’s initial investment in 2022, Springpod has more than doubled annual revenue and engaged over one million students in its programmes. The company has raised £5.3 million in new equity, expanded into the United States, and added high-profile clients such as Amazon, Barclays, and Network Rail. Springpod’s commitment to innovation has been recognised with industry awards, including Innovator of the Year and EdTech Innovation of the Year in 2024.

The latest funding supports strategic expansion through key hires in Greater London, targeted marketing, and continued development of Springpod’s platform. New AI tools will deliver tailored coaching programmes and interact in real time with students, helping to prepare them for real world situations in a safe environment and at their own pace.

Sam Hyams, CEO and Co-Founder of Springpod, commented: “Our mission is to democratise access to quality work experience and careers education. The FSE Group’s continued support enables us to scale our impact, enhance our product suite, and respond to the dynamic demands of the market. We are excited to accelerate our growth and deliver new solutions that empower the next generation.”

Stephen Mitchell, Investment Manager at The FSE Group, added: “Springpod has demonstrated impressive, continued growth and innovation since our original investment. Their team have also been focused on diversification of the client base, now delivering their valuable proposition to corporates and education partners in both the UK and USA. They are positioned well for continued expansion and we are delighted to continue supporting their growth journey.”

The UK market opportunity for Springpod is estimated at £1.1 billion annually, with digital transformation reshaping recruitment and education pathways. Springpod’s platform serves the entire student development journey and sits at the intersection of virtual work experience and university engagement.

With their marketing leading solutions and continued innovation, Springpod is poised to meet the increasing demand for scalable digital outreach to early-talent audiences.

Torbay-based QLM Technology, located at the EPIC Centre, has secured £1million in equity funding from the South West Investment Fund via appointed fund manager, The FSE Group.

The investment is part of a £3.5 million funding round to support the development and commercial scaling of QLM’s advanced methane monitoring technology.

Methane is a potent greenhouse gas, and the drive to reduce emissions is central to global climate targets. However, many leaks remain undetected or unquantified. With tightening international legislation requiring companies to monitor and report methane emissions, QLM says its breakthrough solution provides an essential tool for industry.

QLM’s innovative quantum lidar camera can see, locate and quantify methane at distance with high sensitivity, speed and accuracy. The company’s solution delivers autonomous, continuous, real-time monitoring at scale and low cost. The technology aims to help operators across oil and gas, utilities, wastewater, waste and biogas sectors to meet regulatory and environmental standards.

The new funding will support continued product development across software and industrial applications and will help expand QLM’s channel partnerships and market reach.

Paul Hughes, CEO of QLM, said: “We’re delighted to receive this investment from The FSE Group and the South West Investment Fund, which will help us accelerate development and expand deployment of our unique lidar-based methane detection systems. Our mission is to give operators the tools to detect and prevent methane emissions quickly, accurately and cost-effectively, helping to reduce one of the most harmful greenhouse gases and make real progress toward global net-zero goals.”

Ralph Singleton, FSE’s Head of Equity South West, added: “QLM has developed a world-class, IP-protected technology backed by a strong management team with deep industry experience. Their solution addresses a clear and growing global need, supported by legislation and increasing environmental accountability. We’re pleased to back a company that is not only commercially strong but also making a meaningful contribution to tackling climate change.”

 Paul Jones, Senior Investment Manager, from the British Business Bank said: added: “This investment in QLM Technology demonstrates how the South West Investment Fund is supporting the region’s most innovative businesses to grow and compete on the world stage. QLM’s cutting-edge methane detection technology has the potential to make a genuine impact in the fight against climate change, while creating skilled jobs and strengthening the South West’s position as a hub for clean-tech innovation.”

The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million.

The fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.