The British Business Bank will today (July 6) launch the £200m South West Investment Fund aimed at fostering growth and prosperity for small businesses across the South West of England.

The South West Investment Fund (SWIF) will provide much-needed funding to small and medium sized businesses across the whole South West region, covering Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset, and Wiltshire.

The fund will increase the supply and diversity of early-stage finance for new and growing smaller businesses for various purposes, such as expansion, product or service innovation, and new processes, skills or capital equipment. It will offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million.

SWIF is the first in a series of six new Nations and Regions Investment Funds being launched by the British Business Bank, the government-owned business development bank. A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth, which was first announced by the government in the 2021 Spending Review.

Chief Secretary to the Treasury, The Rt Hon John Glen MP and Member of Parliament for Salisbury said: “The South West is home to some of the most creative, innovative and exciting businesses this country has to offer. This fund will deliver vital investment to nourish that potential, building on over £300 million of levelling up funding to grow the local economy and create well-paid jobs across the region.” 

Louis Taylor, Chief Executive of the British Business Bank, added: "The launch of the South West Investment Fund marks an important milestone in our mission to support business growth across the UK. By identifying and addressing funding gaps in the South West, we aim to empower local businesses and unlock their true potential. This initiative will play a crucial role in catalysing economic growth, creating jobs, and fostering innovation in the region."

The £200m fund has been warmly welcomed by South West business leaders.

Phil Smith, Managing Director of Business West, part of South West Chambers of Commerce which represents businesses throughout the region, said: “Small businesses across the South West tell us there is a real need for more supply and diversity of early-stage finance and this new fund from the British Business Bank will be welcomed because it breaks down barriers and creates more opportunities for growth and innovation."

Katherine Bennett CBE, Chair of the Western Gateway Partnership, said: “It’s great to see this new fund launched from the British Business Bank. We believe that by working together we have the potential to become the UK’s Green Energy Powerhouse – creating solutions to ensure we can reach net zero and take advantage of the economic opportunities that will come from the green transition. Access to early finance will be crucial for this and I look forward to continuing our work with the Great South West partnership, British Business Bank and other partners to ensure the region's businesses have the support to grow and prosper."

Paul Coles, Chief Executive of the South West Business Council, said: “This fund will provide much-needed investment in the region’s businesses, enabling them to thrive, expand, and contribute to the economic prosperity of the South West. We are confident it will drive sustainable economic growth and job creation.”

SWIF will be managed by a team of four fund managers that have been appointed by the British Business Bank including SWIG Finance, FW Capital, Maven and The FSE Group.

SWIG Finance will manage the smaller loans part of the fund, from £25,000 to £100,000, for the whole South West. FW Capital and Maven will manage the debt (£100k to £2m) and equity (up to £5m) funds respectively for the north of the region. The FSE Group will manage both debt and equity for the South of the region.

Applications for funding are made directly to the relevant fund managers who can be contacted via the SWIF website www.southwestinvestmentfund.co.uk

Following today’s official launch in Bristol, the British Business Bank will be holding a roadshow for small business finance intermediaries across the region next week to provide more information about the fund. Destinations include Bristol (7 July); St Austell (11 July); Exeter (12 July); Bournemouth (13 July) and Swindon (13 July).

The Cornwall & Isles of Scilly Investment Fund (CIOSIF) has reached a major milestone having invested over £21m to support the growth of more than 55 businesses, creating or safeguarding almost 1,000 jobs and attracting a further £80m of private investment.

Since its launch by the British Business Bank and the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) in 2018, the fund has been providing market-gap loans and equity investment to SMEs (small to medium enterprises) with high-growth potential via appointed fund manager, The FSE Group.

A recent CIOSIF evaluation showed businesses supported by the fund have strengthened their skills base, improved efficiency, become more innovative and reduced their environmental impact.

Two-thirds believed these positive outcomes had either been accelerated as a result of CIOSIF funding or would not have happened without it. And 90% of businesses surveyed reported increased resilience as a result of the funding they received.

Ken Cooper, Managing Director from the British Business Bank, said: “The Cornwall and Isles of Scilly Investment Fund has been a catalyst for over £100m of total investment in local businesses since its launch, driving growth, skills and innovation while boosting business resilience. We are building on that success with the launch of our £200m South West Investment Fund next month to increase the supply and diversity of early-stage finance across the region.”

John Acornley, Chair of the CIOSIF Advisory Board and until recently a LEP non-executive director, said: “When we developed the Cornwall and Isles of Scilly Investment Fund with the British Business Bank the aim was to break down barriers in access to finance for SMEs in the region. Five years later we have seen how successful it has been in unlocking the potential of growth businesses and demonstrating the transformative impact of external finance.”

Ralph Singleton, Cornwall Head of Fund at The FSE Group, added: “It has been a real pleasure to support the rich and diverse range of growing businesses across the whole of the Cornwall and Isles of Scilly region. At FSE we pride ourselves on our ‘more than money’ approach and it’s great to see from the evaluation how much this is valued, with both customers and stakeholders commenting positively on the team’s expertise and the wider support provided. We are particularly proud of the wide range of industries supported.”

CIOSIF will continue to provide debt and equity funding between £25,000 and £2million until the end of 2023.

In July the British Business Bank will launch the £200m South West Investment Fund (SWIF). It will offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million across the South West region. SWIF is the first in a series of six new Nations and Regions Investment Funds being launched by the Bank.

Recipients of CIOSIF funding include:

Tugdock
Patented marine buoyancy bag technology facilitating the building of floating offshore wind turbine substructures. A CIOSIF equity investment, matched by Sarens, is being used for a range of growth activities, including establishing a manufacturing facility in Cornwall, hiring new staff and undertaking sales and marketing activity.

Shane Carr, Tugdock Founder and CEO, said: “FSE remained in contact as we progressed our leading-edge technology, ready to invest when the time was right. We are grateful for their continued support and, with this funding from CIOSIF and Sarens, look forward to scaling the business and making the most of this exciting global opportunity.”

Refined Brands
A family of ethically sourced British fashion brands with a focus on natural materials and sustainability. Its digitally native portfolio of companies includes Cornwall-based Celtic & Co and Frugi, as well as Kettlewell Colours and Turtle Doves.  A £1.5 million CIOSIF equity investment was secured as part of a £6.75 million funding round to further accelerate growth.

Ben Barnett, Chairman of Refined Brands, said: “We are delighted to welcome CIOSIF as an investor into our expanding group. We value the FSE team’s experience in supporting businesses throughout the region and believe their input will help us achieve our ambitious goals for organic growth both in the UK and internationally.”

Pentire Drinks
Plant-based, non-alcoholic spirits made by distilling plants native to the local Cornish coastline that can be found in Selfridges, Fortnum & Mason and Fenwick. A certified B-Corp that donates proceeds to the Blue Marine Foundation. A £500,000 CIOSIF equity investment was secured as part of a £3m funding round to grow the team and expand multiple areas of the business.

Alistair Frost, Pentire Drinks CEO & Co-Founder, said: “Our drinks encompass what it means to be Cornish and we work hard to make sure they inspire our customers without damaging our local environment. We’re well on the way to becoming an easily-recognisable brand and the CIOSIF funding is enabling us to continue this rate of growth, putting Pentire firmly in the drinks cabinets of people across the globe.”

For more information about the Cornwall & Isles of Scilly Investment Fund including how to apply, please visit ciosif.co.uk or follow the fund on Twitter at @CIOSIFBBB2.

A specialist technology consultancy and software developer has secured a £500,000 investment from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.

With a focus on technology and process transformation in the retail sector, Retail247 has developed a suite of proprietary cloud-based solutions for its retail customers, who include Reiss, Crew Clothing, AllSaints, and LK Bennett. The funding will be used to expand its skilled tech team and enable further product development to meet increased demand.

Designed in-house and from the ground up, Retail247’s ORIGIN and QUANTUM product information and stock transaction management platforms provide a scalable and configurable end-to-end solution that meets the needs of multi-channel retailers.

Martin Schofield, Retail247 CEO and Co-Founder, said: “As ORIGIN and QUANTUM are successfully rolled out to more retailers, we are seeing a significant uptick in interest for our innovative solutions and funding is needed to support ongoing development activity and recruit new staff to grow the business.

“To date, we have self-invested in the development of our technology. We have been successful not only with the development, but also in achieving market entry. Now we need to scale, and we are delighted that FSE is able to provide the MEIF loan to support this stage of our growth.”

Ryan Cartwright, Investment Manager at The FSE Group, added: “The team’s extensive retail sector experience has helped them develop a customer focused platform that has already established strong market penetration with some well-known brands on board. Their ability to develop and launch these well-received products and generate early revenues without significant investment is testament to the quality of the team and we look forward to working with them as they continue to grow the business.”

The UK retail market in 2022 was worth almost £450billion with 1.5-2% of this typically spent on technology. By 2030 this is expected to rise to 3-3.5% and Retail247 is looking to tap into this growing market with its high-performing architecture, upon which it is now building transactional intelligence, which will provide customers with a best-in-class order management system by the end of this year.

Mark Wilcockson, Senior Investment Manager at the British Business Bank, said: “The MEIF supports ambitious Midlands-based businesses looking to expand and grow. This investment in Retail247 will support the expansion of its skilled tech team, creating new high value job roles in the Midlands region, as well as supporting the company’s investment into new products to meet growing demand.”  

Professor Neal Juster, Chair of the Greater Lincolnshire Local Enterprise Partnership, said: “We’re very pleased to see that Retail247 has secured this funding which will allow them to scale up, grow their team and develop more innovative cloud-based products.

“Greater Lincolnshire is developing a reputation for high-tech innovation, and Retail247 is at the forefront of that exciting development.

“We’d like to wish the company luck and we look forward to seeing the results of this significant investment.”

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 2014-2022 and the European Investment Bank. The FSE Group manages a section of MEIF that provides investments between £100,000 and £1.5 million to support growing SMEs across the region. For more information visit: www.thefsegroup.com/fund/midlands-engine-investment-fund-debt-finance.

Producing sustainable products for warehouse storage, packaging and logistics, The Alternative Pallet Company, trading as PALLITE® Group, has received follow-on funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.

This latest £750,000 funding for the company follows a previous MEIF investment, which saw the company create 18 new jobs at its Wellingborough base, establish trading in new overseas markets, and more than double its sales revenues.

The new funding will be used to create new roles in finance and operations, boosting capacity to meet increased demand and supporting the next phase of growth.

PALLITE’s® award-winning range of paper-based products is 100% recyclable and offers a genuine alternative for customers seeking to further their sustainability goals. The range includes PIX® flexible warehouse storage solutions, shipping crates, layer board, pallets and packaging.

Due to the innovative honeycomb technology that underpins all PALLITE® ’s solutions, the company is to be awarded a King’s Award for Excellence in Innovation – making it one of only 148 organisations nationally to be recognised with a prestigious King’s Award.

Paul Etty, PALLITE® Finance Director, said: “We are delighted to have secured MEIF funding, which ensures we press ahead with our growth plans. Our products provide customers with environmentally friendly solutions to help reach their sustainability targets. We are honoured to be a recipient of a King’s Award and excited to be taking this offering to more markets. FSE has continued to show an understanding of our business model and is able to invest where traditional lenders cannot.”

Ann Marie McFadyen, Investment Manager at The FSE Group, added: “Paul and the team have made impressive progress since our last loan – despite difficult trading conditions caused by covid and Brexit – with the company on track to deliver over 100% growth in 2023 for the second year running. We are pleased to be continuing to support this growing and ambitious business as it develops more sustainable products for worldwide use.”

Over 25% of the UK’s greenhouse gas emissions are produced from the transport sector and environmental legislation requires businesses to take action to reduce this. As one of the UK’s leading producers of honeycomb paper products including pallets and collapsible boxes, PALLITE® is well-placed to support this transition.

Mark Wilcockson, Senior Investment Manager at the British Business Bank, said: “The MEIF supports SMEs in the Midlands that are focused on innovative and eco-friendly business practices. MEIF’s follow-on funding for PALLITE® will support the company’s further growth plans and help create new roles in the region to meet the increase in demand following a successful first funding round.”

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 2014-2022 and the European Investment Bank. The FSE Group manages a section of MEIF that provides investments between £100,000 and £1.5 million to support growing SMEs across the region. For more information visit: www.thefsegroup.com/fund/midlands-engine-investment-fund-debt-finance.

Leeds-based Creode Agency is expanding with a £100,000 investment from Finance Yorkshire.

The integrated digital marketing agency has used the investment from Finance Yorkshire’s business loans fund to assist in its acquisition of Blue Digital, another Leeds agency.

The acquisition will enable Creode to strengthen its service offering to clients across the Yorkshire region. The agency provides marketing, brand and website development and digital media support to B2B SMEs in professional and financial services and other sectors.

Creode employs 28 people and is managed by CEO Guy Weston. He said: “The acquisition complements our offer to clients and strengthens our broader proposition, particularly in the Google Ads and SEO space which is a growing area for us.

“The benefit for clients using an integrated agency is that we can be more efficient on their behalf – we have the overview of the different elements of work and can keep our focus where it needs to be.”

Guy has ambitious plans for Creode. “There are lots of opportunities in Yorkshire to grow,” said Guy. “Acquisition is a good way to gain additional clients and we would look to do it again beyond the next 12 months.”

Alex McWhirter, chief executive of Finance Yorkshire, said: “Digital and creative are among the fastest growing sectors in Yorkshire and particularly in Leeds. Creode has a strong track record as digital marketeers and we are pleased to support them in their growth journey.”

Wokingham-based HR rewards and recognition platform, Each Person, is the latest company to be supported by the Thames Valley Berkshire Funding Escalator. The company has secured a £500,000 growth loan which will support continued software development and enable the recruitment of 7 local hires in 2023.

Each Person is a leading employee engagement platform which combines the latest technology with behavioural science to help businesses build and maintain engaged and motivated workforces.

The company offers a range of features designed to foster a positive workplace culture and improve employee engagement. These include customised surveys, interactive dashboards, and a range of tools to help businesses measure and track employee engagement levels over time. The rewards offered to employees are sourced from leading high street and online retailers and Each Person is proud to be the first reward platform to offer a Diesel Card which can save employees £200-£300 per year off their diesel bill.

Ensuring people feel recognised for their hard work and talent is vital, especially when recent statistics show that regular recognition lowers staff turnover by 31%.

Matt Norbury, CEO at Each Person, said, “Our mission is to help organisations create highly engaged, motivated and productive workplaces by enabling employers to recognise and reward their people through providing perks at work. A free coffee now and again is okay, but a rewards platform that provides benefits for people’s mental, physical and financial wellbeing whilst also battling climate change is something that really will make a difference to workplace culture. We’re determined to make Each Person respond to the needs of the time which is why we plant a tree for every employee that joins our scheme, give a percentage of our profits to eco projects, and why we are incredibly proud to be the first HR tool to offer a Fuel Card as part of our package. This latest funding will help us continue to push our business forward as we expand and take on even more clients.”

John Gaudoin, Investment Manager at The FSE Group added, “Each Person is an impressive company with a strong leadership team who have already signed major clients such as the NHS, Virgin Active, BUPA, American Golf and Prezzo. They have been cited independently as being transformational for clients and it’s easy to see why when viewing the quantity and quality of what is offered to employees. The FSE Group is delighted to support Each Person as they hire local talent and expand their reach within the HR sector. We wish them the very best of luck with what will surely be an exciting year ahead.”

The Thames Valley Berkshire Funding Escalator is an £11.3m initiative funded by Berkshire LEP. The escalator, includes a Trade Finance Loan Scheme and an Expansion Loan Scheme, providing eligible companies with business loans between £50,000 and £500,000 for activities that will deliver high-growth and employment opportunities.

An accountancy firm in Camberley has secured a £300,000 loan from the Enterprise M3 (EM3) Funding Escalator, managed by The FSE Group on behalf of EM3 LEP, to support expansion of the business.

Stewart & Co was established in 1958 and provides a range of financial services to individuals and businesses across the Home Counties. These include bookkeeping, cloud accounting, audit, taxation and wealth management. The loan will support the acquisition of another accountancy practice, including the funding of new hires and working capital needed to service the expanded client base.

Stewart & Co Managing Partner, David Hartley, said: “As a company that works to support other small businesses with their growth strategies, we are well-versed in the funding streams available and this EM3 loan is a great fit for us. Our dedicated FSE Investment Manager understood the proposal from the get-go and was able to offer this market-gap funding where traditional high-street banks could not. We are delighted to be able to now move forward with plans to grow the business further, creating new jobs in the process.”

FSE Investment Manager, Simon Blackbourn, added: “As a financial services provider, Stewart & Co doesn’t fit our usual customer profile but we could see there was an opportunity for business growth that would benefit the EM3 region. With a strong reputation in the local area, high levels of client referrals and a track record of successfully acquiring and integrating smaller accounting firms, the management team is well-placed to maximise this latest expansion opportunity.”

Sue Littlemore, Joint Managing Director at the Enterprise M3 LEP, said: “We are delighted to see Stewart & Co secure its EM3 Funding Escalator loan, which will allow the firm to accelerate its growth plans while securing and creating more jobs. This in turn will help boost the services they offer to help other small businesses develop and grow in our region. We wish David and his team well as Stewart & Co go from strength to strength.”

The Enterprise M3 Funding Escalator is a £10million initiative funded by Enterprise M3 LEP. The escalator includes an expansion loan scheme, a short-term trade loan scheme and an equity growth fund and provides eligible companies with loans and equity funding between £50,000 and £500,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.

A provider of digitally enabled pharmacy solutions to care homes across the UK has received further funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.

Following significant scaling up of the business since its first MEIF loan in 2021, Remedi Solutions has secured an additional £800,000 in MEIF investment to help boost further growth. The latest funding will be used for IT infrastructure development, premises refurbishment and equipment purchase.

Remedi is transforming care home medicine management by offering a service that dispenses and supplies repeat prescription medicines from an automated hub. Its electronic barcoding solution gives full traceability of prescriptions of medicines from the pharmacy through to the end-user      care home resident, removing the workload and error potential of the prevailing paper-based system.

Kenny Black, Remedi Solutions CEO, said: “This support from the MEIF is enabling us to fast-track our growth and continue to roll out our game-changing solutions to more care homes across the UK, resulting in better quality of care. FSE is continuing to invest in our potential, despite being an early-stage business with limited track-record and we are delighted to be working with them as we continue to grow.”

There are over 500,000 care home residents in the UK and an ageing population means this figure is set to grow substantially over the next decade. Remedi’s simple and efficient one size fits all platform will be invaluable across this largely unintegrated sector.     

Harriet Saunders, Investment Manager at The FSE Group, added: “Remedi first came to us having developed an innovative solution that was ready to launch. Over the last two years, the team has already onboarded 200 care homes servicing over 8,000 residents. We are thrilled to see this progress since we provided the first MEIF loan and look forward to supporting the team further as they seek to modernise processes across the care and pharmacy sectors.”

Mark Wilcockson, Senior Investment Manager at the British Business Bank, said: “The MEIF supports sustainable and innovative SMEs in the Midlands – this follow-on funding for Remedi Solutions will continue to drive growth for the company to increase its capacity through new equipment and investment into infrastructure. We look forward to seeing how the funding will boost Remedi Solutions in its growth plans as it reaches the next stage of expansion.”

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 2014-2022 and the European Investment Bank. The FSE Group manages a section of MEIF that provides investments between £100,000 and £1.5 million to support growing SMEs across the region. For more information visit: www.thefsegroup.com/fund/midlands-engine-investment-fund-debt-finance.

A specialist bathroom installer for people with limited mobility has secured a £150,000 investment from Finance Yorkshire.

The Walk in Bath Company was established in 2018 by husband-and-wife Jules and Kirsty Allen. Jules has 18 years’ experience in the mobility industry.

The Shipley-based business provides UK-manufactured walk-in showers and bathrooms for customers with disabilities or limited mobility. Design features include a low threshold to make it easier to get in and out of the bath, secure locking and safety grab rails.

The investment, from Finance Yorkshire’s Business Loans Fund, will enable The Walk in Bath Company to recruit new field and service team members, while adding more firepower to its marketing.

Since the investment, the company has seen its sales increase by 20% on the first quarter of 2023. The number of installations it has carried out is up 50% on last year.

Jules Allen, managing director, said: “I set up the business after hearing too many horror stories about people selling products with little care for customer service. There was a gap in the market for someone who puts care and attention to detail first.

“It is not just about selling people a bath or shower. We get to know customers and advise them throughout the process, finding the right option for their mobility and home.

“This investment from Finance Yorkshire will support the next stage of our growth with a mobile-friendly website, brand new TV campaign and the addition of fully employed installers.”

Alex McWhirter, chief executive of Finance Yorkshire, said: “Within a few years, Jules and Kirsty have established themselves as one of the UK’s fastest growing suppliers of walk-in baths and showers. Their commitment to customer service is well received by customers and we look forward to seeing the business scale-up further.”

Read the article on the Finance Yorkshire website.

One of the UK’s leading high-end holiday rental providers, luxurycottages.com, has received financial backing worth £500,000 to support the continued growth of the business.

Founded in 2019, the Birmingham-headquartered company has had an impressive journey so far and will now get a funding boost from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.

The agency which prides itself on offering the finest cottages across the nation’s most sought-after locations, offers a bespoke service to handpick getaways that suit all kinds of discerning travellers, The funds will be used to build an increased presence across the UK with luxury experts in each major tourist area, creating 24 jobs over the next three years as the holiday market goes through resurgence, with experts predicting 35.1 million visits to the UK in 2023 -18% higher than in 2022.

This latest investment from FSE follows more than £1 million in equity funding previously raised from Midven, a venture capital firm based in the heart of Birmingham, also through the MEIF.

Alistair Malins, Luxury Cottages CEO, said: “Over the last three years of challenging market conditions, we’ve built a strong brand position and a reputation for excellent customer service. Off the back of this we expect to more than double in size this year.

“With our focus on the premium end of the market we anticipate continued high demand for holidays and are delighted to have received further backing from the MEIF, which will allow us to expand our team and make the most of buoyant market conditions.”

The UK holiday market continues to go from strength to strength and, with a forecast spend of £25.9 million in 2023, figures have now risen above levels last seen pre-pandemic.

Ryan Cartwright, Investment Manager at The FSE Group, commented: “This is a truly exciting time for Luxury Cottages as the rise in popularity of “staycations'' continues to boost the sector. The current team has a proven track record of success and the forthcoming new hires will bolster the company's dynamic and determined ethos. We’re delighted to be working with Alistair and his team and very much look forward to joining them on their growth journey.”

Mark Wilcockson, Senior Investment Manager at the British Business Bank, said: “The MEIF supports ambitious SMEs with growth plans to scale up, and following a successful first funding round this new investment from the MEIF will allow Luxury Cottages to expand its team with new hires while tapping into the growing holiday market following the impact of the pandemic.”

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 2014-2022 and the European Investment Bank. The FSE Group manages a section of MEIF that provides investments between £100,000 and £1.5 million to support growing SMEs across the region.