News

A Worcestershire based food gifting company has secured a £200,000 loan to support growth through increased marketing and product development, creating eight new jobs. 

Ross & Ross Gifts Ltd, based in Evesham, secured the finance from the Midlands Engine Investment Fund (MEIF), provided by the FSE Group, Debt Finance Fund and backed by the Recovery Loan Scheme.  

Ross & Ross Gifts was created to address a gap in the market for quality and original gifts aimed at people using online sales to sell locally sourced food enhancing product, such as homemade Curing Kits, Food Hampers, British Roasts, British BBQ and Vegetarian. 

Ross & Ross Gifts will use the funding to expand its product range, which each range offering a variety of flavours and products including rubs, dusts, oils, jams, salts, sauces and chutney. The company aims to adapt products to new market trends as all products are designed and developed in-house by the founder, Ross Bearman, and then made by another local business. The Vegetarian range has been created in response to the recent increase in consumers choosing a more plant-based diet.  

Ross Bearman, Founder of Ross & Ross Gifts, said: “Due to our existing set-up and the speed with which we can innovate new ideas whilst retaining the quality and premium ingredients that our target customer expects, we are in a strong position to take advantage of new trends and tastes. We are delighted to secure this loan to put the impact of Covid-19 behind us, allowing us to drive our expansion strategy forward and add a new focus on personalisation and corporate gifting, both of which have huge potential to grow sales. 

Personalisation is a growing market trend in the gifting industry, with research showing that consumers are willing to pay a premium price for it. The company is looking to use this growth with a new range. The corporate gift market is worth £78million in the UK, and Ross & Ross will be concentrating on expanding its success in this market through sales of luxury hampers. 

Andy Moss, Head of Fund, Midlands at The FSE Group which manages the MEIF Debt Finance Fund, comments: “The business is currently operating a successful multi-channel sales strategy, split into Trade, Distributers and Online. The MEIF loan will support Ross & Ross Gifts to drive additional sales via these existing channels, through the engagement of further sales and marketing staff. It will also allow the company to keep ahead of its rivals by supporting in-house product development, ensuring innovation is always at the forefront of the brand.” 

Grant Peggie, Director at the British Business Bank, said: “MEIF funding aims to support the growth of Midlands-based businesses such as Ross & Ross Gifts. Alongside the creation of eight new jobs, the funding will help the company to expand into new markets and develop new products. We encourage other small businesses in the Midlands to consider MEIF financing options for their own growth plans.” 

Gary Woodman, Chief Executive of Worcestershire Local Enterprise Partnership, said: “It is great news to see another Worcestershire business being supported to grow through the MEIF programme. This support investment will allow Ross & Ross Gifts to expand their operation, creating new jobs in the county, helping the local economy to grow and recover from the challenging few years we’ve had. For any businesses in Worcestershire looking at what support options are out there to help them grow, make sure you speak with the Worcestershire Growth Hub team to find out more about all the options, including the MEIF programme.” 

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. 

Newbury Mobility Ltd has received £75,000 from the Thames Valley Berkshire (TVB) Expansion Loan Scheme to support the opening of a new disability centre and to provide the capital to hold more stock.  

The deal was handled by The FSE Group, which manages the TVB Expansion Loan Scheme on behalf of TVB Local Enterprise Partnership (LEP).  

Newbury Mobility handles the sales, service, rental and repairs of stair lifts for domestic properties. The company will soon be opening a disability centre at its premises in Berkshire where customers will be able see demonstrations of stair lifts, floor lifts and step lifts, all geared towards making it possible for the domestic user to stay in their own home. It is also exploring partnerships with other disability providers, for example providers of wet rooms and modified kitchens, to display their products in the showroom.  

The company is also looking to expand into the commercial market this year by supporting the 43,000 local businesses who are legally required to provide equal access. For businesses that are open to the public, receive external visitors, and any business that has employees, renting a low-cost and sustainable stair lift is a simple way to comply with the Equality Act. Another source of expansion is through contracts with local councils to fit stair lifts to their properties.  

Avril Quince, Director of Newbury Mobility, commented: “We are very grateful for this TVB loan, which will support the development and growth of our disability centre showroom. The centre will allow customers, including medical professionals and commercial businesses, to see, try and educate themselves on the different options available to them. Our aim is always to seek equal access for disabled people and to support our customers’ preference to remain in their own homes, which is also the cheaper option compared to assisted living or care homes.” 

Phil Greenwood, Investment Manager for The FSE Group, added: “Newbury Mobility has a very strong management team with David’s 30 years of experience in the sales and servicing of stair lifts and Avril’s 20 years of business development. We are confident the launch into the commercial sector will allow the company to expand across their local area. The new showroom will be a huge benefit to the business, in terms of increased sales and awareness, and to the customers who use it and feel assured they have made the right choices for their circumstances.”  

TVB Expansion Loan Scheme is part of TVB Funding Escalator, an £11.3m initiative funded by Thames Valley Berkshire LEP. The escalator, which also includes a Trade Finance Loan Scheme and a Growth Equity Fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities. 

About The FSE Group

At The FSE Group, we have a 20-year history of supporting high growth UK SMEs, especially in underrepresented areas of the UK. In that time, we have had the opportunity to work through multiple market cycles and economic phenomena and see how they have affected SMEs.  Our mantra is “more than money”, which is achieved by genuinely looking to provide insight and challenges to businesses we support, to ultimately improve their “probability of success”.

This time is not different

The COVID-19 pandemic threw multiple assumptions about economic policy out of the window. One of them being whether the government should provide direct financial support to people and businesses, and if so, what are the circumstances under which that support is considered a good idea? Society appeared to agree that direct monetary assistance was reasonable in an economic crisis that was caused by non-economic short-term factors – namely, a global pandemic.

Whilst some SMEs have been hit very hard, others have remained unaffected, and for them it really has been business as usual, some are even showing strong growth.  Having spoken with many different sized SMEs which make up our portfolio, they have managed to demonstrate their true competitive advantage – their adaptability. From quickly changing their working models to fully remote ones, all the way to launching new businesses and products built around the new world of work, SMEs took up the challenge to boost productivity and keep the engine of the UK economy running.

SMEs now face quite a different challenge, including most government support to businesses coming to an end. Whilst they faced inflationary challenges during the pandemic, partially driven by challenges in supply chains, this has now been amplified by the rise in energy prices, bringing back memories of the 1970s. This has driven up costs considerably - the RPI (Retail Price Index) for April 2022 was 11.1%, notably the highest in decades. SMEs face the challenge in costs for themselves, but also for their staff who are feeling the pressures of inflation. This leads to challenges in staff retention and is a factor in what is being termed “The Great Resignation”.

Facing the challenge

There are going to be some causalities from this current business trading environment.  There always is – typically it boils down to decisive management action.  Using mentors and other support resources helps owners and leaders to work “on their business” even when it feels that it’s fire fighting “in the business”. 

Retaining, and motivating highly productive staff is so important.  Businesses that can afford a pay rise for their staff in line with inflation, should pay their staff more – or at least understand the difference between the effects of inflation on their staff’s disposable income.  However, this is a relatively privileged position - for many SMEs, especially those at the earlier stages who may not be profitable or have a balance sheet that can support this, this is not a viable solution. This is where the adaptable and nimble nature of SMEs can be an advantage. SMEs that are focussed on rapid growth and increasing shareholder value can consider setting up an option pool for their staff – it is generally good form for options to be allocated to all staff and not just restricted to senior team members. SMEs can also consider providing additional flexibility to their teams, as moving to a hybrid or fully-remote working model can help keep costs under control, and can help provide staff with greater flexibility. Additionally, it no longer restricts the hiring pool for candidates to a 20-mile radius of the office, allowing SMEs to hire skilled staff based across the UK’s regions.  The key is for leaders and owners to think differently.

In summary

UK Plc needs SMEs to grow and prosper. The FSE Group’s regional funds are open to support them by providing funding to eligible businesses to assist in their growth journey.  Many of the funds can provide both debt and equity finance and this allows the right combination of funding.  In addition, the funds are there to support the future – through genuine projection-led funding.

Loughborough based medical device designer and manufacturer Uvamed has secured a growth finance loan from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund, and backed by the Recovery Loan Scheme (RLS).

The £250,000 investment will be used to fund new warehouse and sales staff, marketing activity, accreditation, patents and tooling.

Uvamed’s Rainbow Trays are compartmentalised trays for holding syringes containing anaesthetic drugs for use in surgery. These syringes are labelled using an internationally recognised critical care colour coding system which is replicated across the sections of the Rainbow Tray.

The concept was developed using extensive research in collaboration with healthcare professionals to reduce the cognitive load for anaesthetists working during an emergency and in high pressure situations.

Uvamed is an approved NHS supplier after its Rainbow Trays were successful in feasibility and usability trials and as its domestic and export sales continue to grow.

An estimated 237million medication administration errors occur across the sector each year in England, with the financial burden to the NHS upwards of £98million. The Rainbow Tray helps to mitigate the potential cost of litigation and aftercare, as well as improve patient experience and save lives.

Keith Fawdington, Managing Director at Uvamed, said: “The pandemic put our initial plans on hold as health services everywhere were overwhelmed. As our funding requirement didn’t fit traditional loan criteria, the MEIF investment proved crucial for us to expedite growth and get the products into hospitals. We look forward to having The FSE Group and MEIF on board as an investor.”

Ann Marie McFadyen, Investment Manager at The FSE Group, said: “Keith and his team have created an award-winning and industry-recognised solution to an identified market gap. They have expanded the range to provide for a number of medical environments and needs, including tamper evident trays, and they are working on a trauma tray for military field surgical teams. There is clear potential for the Rainbow Tray to become a go-to tool in operating theatres across the world and we are delighted to be supporting this dynamic team to achieve its potential.”

Lewis Stringer, Senior Manager, UKN at the British Business Bank, said: “The MEIF is committed to supporting innovative companies offering crucial services and products, and Uvamed’s contribution to the MedTech industry is a key example of this. Funding from the MEIF can lead to new and sustainable advancements in key industries and we encourage other Midlands businesses looking to grow in this way to consider MEIF funding.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

The FSE Group is pleased to announce the recruitment of Ryan Cartwright and Abbie Peat, who join the team in the Midlands which manages the Midlands Engine Investment Fund (MEIF) Debt Finance Fund. Ryan joins as Investment Manager for the West Midlands and Abbie will take up the role of Investment Manager for the East Midlands. 

Ryan’s career in SME finance began with the RBS Group where he worked in Relationship Management roles within Corporate Banking for nine years. His next move was to a regional Growth Hub in Staffordshire before returning to commercial finance with a private sector invoice finance and factoring business where he was responsible for setting up an office and developing a new portfolio of clients from scratch. In 2018 he became the West Midlands Senior Manager for the British Business Bank which gave him a deeper experience of the diversity of finance options available to SMEs including equity and debt products.  

Abbie has almost 20 years’ experience in the banking sector with varying roles including Relationship Management, Training & Development, Business Risk and Assurance and Project work. Working for Yorkshire & Clydesdale Bank, she helped deliver the Coronavirus Business Interruption Loan Scheme (CBILS) and most recently supported the bank’s phase out of LIBOR which is one of the largest, most complex regulatory driven change projects ever to impact the financial services industry and its customers. 

Ryan Cartwright, Investment Manager at The FSE Group, said, “I’m pleased to join the team at FSE and to continue the great work being carried out by the Midlands Engine Investment Fund (MEIF). Having previously worked with the MEIF while I was part of the British Business Bank, I’m excited to directly work with and support the SMEs who use the fund and who are growing and enriching the Midlands.”  

Abbie Peat, Investment Manager at The FSE Group, added “I’ve worked directly with business banking customers for years but I’m excited to be able to make this my main focus. The Midlands has a wonderful community of SMEs and is a region experiencing significant growth through investment. I’m delighted to be a part of this and to use my knowledge to guide and support local companies who are taking the next steps on their growth journey.”   

The MEIF Debt Finance Fund can be used for expansion related activities which will deliver substantial growth impact within the area. Through this fund, eligible SMEs can secure growth loans ranging from £100,000 - £1,500,000 which can be used for sales and marketing activity, hiring new employees/job creation, new product development, exporting abroad, purchasing new equipment or entering new markets. 

Andy Moss, Head of Fund at The FSE Group, commented: “We are delighted to announce the appointment of Abbie and Ryan, two highly skilled investment professionals, who will complete our Midlands team. The FSE Group has supported 48 businesses across the Midlands and is looking to increase this number by continuing to work with growing SMEs in the region. Both Abbie and Ryan have a deep understanding of the challenges and demands faced by local businesses which makes them ideally placed to continue this work.” 

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.