News

09/01/12

Leading Merseyside cloud computing services provider AIMES Grid Services Limited has raised a funding package totaling £1.2m to build the first phase of a next-generation data centre in Liverpool.

Photo shows Paul Humphray (MSIF) Jane Hetherington (AIMES) Nick Evans (RBS) Professor Dennis Kehoe (AIMES)

The new 1.5 Mega Watt 35,000 square foot space will be based at Liverpool Innovation Park . The facility will use an innovative cooling system which will save some 3,000 tones of CO2 annually propelling Liverpool to the forefront of energy efficient digital provision in the UK .

The funding package includes £150k from MSIF’s Merseyside Loan & Equity Fund, and £200k from NatWest. The remaining finance will be provided from private investment. AIMES was set up by Professor Dennis Kehoe in 2005 as a spin out from the University of Liverpool. It began trading in 2008 and since then has grown rapidly securing a range of clients including local organisations Park Group Financial Services, Novartis Vaccines and Transactis, and national and global companies including Perkins Engines, The Institute of Child Health and Human Time A/S ( Denmark ).

Professor Kehoe said: “This investment will enable us to create cutting-edge cloud computing facilities. The improved infrastructure will give significant advantages to customers including improved levels of energy efficiency, cost savings and increased resilience”.

“Work on the facility will start soon in December and we expect it to take around 16 weeks to complete”.

“MSIF were our preferred investor and we are delighted to have them on board. They provided a great service and the whole deal was coordinated extremely well with RBS who have also been terrific partners”.

MSIF Investment Director Paul Humphray said: “AIMES is a leader in its field and plays an important role in making new technologies accessible to businesses especially local SMEs which may otherwise get left behind. It is also ensuring that Liverpool is recognised across the UK as a centre of excellence for digital provision. We are very pleased to be supporting this exciting new project”.

Nick Evans, Relationship Manager at NatWest, said "AIMES has a good track record of making investments to improve the service it can offer its clients. This is the second tranche of funding NatWest has provided to the company this year and we look forward to working with them on future projects.”

AIMES is expected to reach a turnover in excess of £1m this year and this figure is expected to treble over the next two years. The company currently employs 15 staff and expects to recruit a further 8 people within 2 years.

02/11/11

MSIF is urging businesses within the creative and digital sector to apply for funding from its Merseyside Small Loans for Business Fund. Half of the £3.6m pot of money is aimed at supporting businesses creating and using innovations and technology including those within the creative and digital sector.

Read the full story here.

Pic shows Clemens Wangerin of Setgo Limited with Chris Walters (MSIF)

16/11/11

Chief Operating Officer - Lisa Greenhalgh

Local funding provider MSIF has announced it has invested almost £3m in Merseyside businesses during the last 18 months with over £600k currently out on offer.

MSIF launched the Merseyside Loan & Equity Fund last year and also manages the Small Loans for Business Fund in its capacity as the Community Development Finance Institution (CDFI) for Merseyside.

Finance including loan, mezzanine and equity funding has been provided to companies across a range of sectors including biomedical, manufacturing, logistics, creative and digital, engineering and professional.

Chief Operating Officer Lisa Greenhalgh said: “Despite a tough market we’ve seen some great businesses and are pleased with the quality we’ve invested in. Our role now is as vital as ever with financial support still lacking from traditional sources. Our funds will support start ups, growth capital, MBOs/MBIs and acquisitions.

“The finance we offer now is less regulated than previously. In addition to the five original Objective One boroughs of Liverpool, St Helens, Sefton, Wirral and Knowsley we now have a small but growing pot of money which we can invest in the former Objective 2 area of Halton. This is because we have some funds which have been invested and repaid twice, and are then less subject to European regulation.

“The fact that we have now had money returned to us for the second time is a great achievement and shows that we have created a self-sustainable model.

“We want to ensure that businesses and the professional community are aware that we are actively investing. We are open to all opportunities that fit the criteria and have a good business plan in place. Most sectors can apply and there is a specific pot of money to provide micro loans of between £3k and £50k to businesses creating or using innovations and technology.”

The Merseyside Loan and Equity Fund is made up of so called ‘evergreen’ money - capital that has returned to MSIF from repayment and realisations from investments made by funds which launched in 1996 and finished investing in 2008. The Fund aims to invest £25m over the next five years into established SMEs. Individual investments range in size from £50k to £2m in the form of loan, mezzanine and equity finance.

The Merseyside Small Loans for Business Fund is managed on behalf of The Department of Business, Innovation and Skills (BIS) This fund provides loans from £3k to £50k including to start ups.

20/10/11

MSIF has invested £50k into a Liverpool-based company which has developed an innovative alarm system to prevent thieves from climbing over walls and fences to gain access to properties.

Pic shows John McRae and Peter McRae (Wall Top Alarm) Chris Walters (MSIF)

The Wall Top Alarm Company, based in Netherton, will use the money increase manufacturing and enhance its regional marketing activity following considerable interest from various parties including social housing landlords and the police.

Through increased sales the company says it will take on local unemployed people, creating numerous jobs in the area.

MSIF provided the loan through its Small Loans for Business Fund which it manages in its capacity as the Community Development Finance Institution (CDFI) for Merseyside.

Directors Peter and John McRae came up with the idea for the system following on from ‘Alleygating’, a scheme that Peter promoted in the 90s to prevent anti social behaviour and burglaries as a result of access to alleyways being permanently open. The project saw gates installed to block off alleyways resulting in crime being reduced by around 80%. The scheme was supported by Jack Straw and rolled out across the rest of the country with great success.

However, people living on the end properties were worried about intruders jumping over their walls to gain access. Along with his brother John, Peter came up with the idea for an alarm system that is fitted to the top of walls (or onto wooden fence panels if required). They have spent the past several years fine tuning The Wall Top Alarm and the company was incorporated in 2010.

The business recently held a launch for the product which attracted an audience made up of social landlords, police, councillors and even the Lord Mayor with the product receiving widespread support.

Mr McRae said: “There has been a lot of interest in this product. The cost to taxpayers for the police to respond to a burglary is approaching £4k per incident - whether or not there is a conviction, so you can see there are clearly significant savings to be made. Also, in terms of cost-effectiveness the prevention of just one burglary equates on average to the installation of Wall Top Alarms onto 4 terraced properties.”

“We are now beginning to market the product on a broader scale and we are increasing our manufacturing capabilities accordingly. Our main focus is to continue to sell to private sector clients and to make our Wall Top Alarm DIY kits available through retail outlets. However, we are also keen to work with Registered Social Landlords to establish a non-profit social enterprise delivering crime reduction, environmental improvements and training/apprenticeship opportunities in areas of high unemployment and deprivation.”

“The support from MSIF has been brilliant. We couldn’t get any support from the bank however MSIF were really enthusiastic – they liked the product and deal was on the table very quickly.”

Chris Walters, Investment Manager for MSIF’s Small Loans for Business Fund said:

“Peter and John are really passionate about what they do. As well as looking to reduce crime, they are also really supportive of the local community and want to create jobs for us many people as possible. The product is cutting edge – there is nothing else quite like it on the market at the moment and we are really pleased to be supporting the business.”

03/10/11

A Merseyside company which provides specialist vehicle conversions for the Emergency services is expanding with a £50k investment from MSIF.

Jack Hodson Limited, based in Bootle, converts standard vehicles so that they are fully equipped for the police, fire and ambulance services. This includes adding livery, public warning equipment eg lights and sirens, communications equipment and computer technology.

The majority of the company’s work is for the police, providing vehicles to forces all around the UK and also advising foreign police forces on how to adapt their fleets. In addition the business also supplies specialist technology and products.

Jack Hodson Limited is a family business which was set up in 1965. The company started out providing repairs for emergency vehicles. By the 90s Jack Hodson Limited began to offer installation work before making that its sole business by 2003. Three generations of the Hodson family currently work in the company which turned over £750k in the last financial year.

The company recently won a prestigious award at the National Association of Police Fleet Managers Exhibition in Peterborough which attracted an international audience.

Director Peter Hodson said: “Winning the award at the National Association of Police Fleet Managers Exhibition was huge for us. It was a closed exhibition open only to businesses and individuals working within the industry so everyone there was our target audience.

“We provide vehicles to forces across the UK and one of the team is due to fly out to Stockholm shortly to advise the Swedish police.

“The investment from MSIF will be used to help us increase capacity and develop our systems in order to accommodate an uptake in demand nationally for our services. The economic climate at present makes it very difficult to obtain funding. Our accountant, Peter Alcock of The Wilson Henry Partnership, suggested MSIF and got the ball rolling for us. MSIF were really good – the whole process was extremely straightforward, transparent and quick.”

MSIF Investment Director Paul Humphray said: “Spending cuts have meant that many public sector organisations providing this type of work no longer exist and there is therefore much more reliance upon private sector companies like Jack Hodson Limited. They are on track to increase their turnover next year and we believe there is good potential for growth.”

Jack Hodson Limited currently employs 14 staff but expects to take on up to four more over the next year. Turnover next year is projected at around £1.2m.

15/09/11

MSIF hosted a drinks reception to mark the move to its new offices at Exchange Court.

Bubbles and nibbles were served and guests enjoyed browsing some new artwork MSIF has commissioned – a montage of MSIF’s press cuttings and success stories which highlight the impact MSIF has made in the 15 years since it was founded in 1996.

COO Lisa Greenhalgh gave a short speech in which she said that ‘the long term lease which MSIF has signed at its new offices underpins its commitment to the future’ and that ‘MSIF will build upon its past successes to continue to support SMEs in the region’.

Around 90 people, including advisors, intermediaries and press from across the region attended the event.

Exchange Court is managed by Bruntwood. Food was provided by Pickled Walnut and the artwork created and produced by Kenyon Fraser.

Lisa-Greenhalgh, COO MSIF

Andrew McKeown, Andy Rigby

Angela White, Debra Wilding, Lisa Greenhalgh, Phil-Wolstenholme (MSIF)

Chris Walters (MSIF)

Craig Scott, Luke Green (Hill Dickinson) Marion-Savill (MSIF)

Kieran Donovan (Bermans), Ian McGee (RBS) Ian Henry (Lloyds)

Lisa Greenhalgh (MSIF) Steve-Dickson (Sefton CC)

Neil Hodgson (Echo) Lucy Shotter (Bibbys) Paula McGrath (Brabners) Stephanie Eccles (Brabners)

Phil Thornton (IBFC) Sean Deboe (Yorkshire Bank) Anndrew-McKeown

Steve Jones (Co-Op) Robin Gill (Burmans)

7th September 2011

Photo L-R Paul Humphray (MSIF Investment Director (MLEF), David Rawling (Optimum), Chris Walters (MSIF Investment Manager (Small Loans for Business Fund)

MSIF has injected a total of £200k into a Liverpool-based company which will enable it to expand its franchise portfolio.

The Optimum Holdings Group has received loans from MSIF’s Merseyside Loan & Equity Fund (MLEF) and Small Loans for Business Fund which it will use to expand and develop its Costa Coffee franchises.

Optimum Coffee Services Ltd was set up in 2004 by husband and wife team David and Emma Connor to operate their first Costa Coffee franchise. The company’s Costa Coffee outlets are overseen by Operations Director Alan Rawlings. Optimum Holdings is the parent company to a number of subsidiaries which include several drinks and retail businesses an Energie Fitness Club franchise, Optimum Electrical and Optimum Alarms & CCTV.

The company is the most decorated Costa Coffee franchise in the UK counting Costa Coffee Franchise Store of the Year 2010-2011 (Allerton Road), Costa Coffee Store Manager of the Year 2009-2010 (Steffi Wilson, Tithebarn Street) and Costa Coffee Franchisee of the Year (2008-2009) among its list of honours. The company also holds a countrywide record for weekly sales for a franchise store (Albert Dock).

Managing director David Connor said: “We were finding it difficult to raise the full amount of finance we needed from the banks. We were introduced to MSIF and they were very positive straight away. Initially we got a £50k loan through the Merseyside Small Loans for Business Fund to open up our London Road site and then a further £150k through the Merseyside Loan & Equity Fund to open the Costa Coffee in our Energie Fitness Club in Waterloo.”

Operations Director Alan Rawling added: “The coffee culture is thriving and includes the full spectrum of young and old which is why I think we are doing so well. People are still spending money on their coffee even if they are cutting back elsewhere.

“As a franchisee our outlets tend to be in the suburbs and I think this has been an advantage allowing us to build up a great relationship with our customers who tend to be local. In the city centre the clientele tends to be more transient.

“Our current sites include Allerton Road and the Albert Dock as well as the two new premises. We will be opening our 13th franchise at Stanley Road in Bootle in August.”

Paul Humphray, Investment Director for the MLEF said: “Optimum has built up an impressive portfolio and the franchising arm of the business is particularly successful. We combined two of our funds to service different aspects of their funding requirements and create a tailored package to suit their needs.

“Costa Coffee is a huge brand and Optimum has already demonstrated that it understands its market very well. We believe that this combined with the experience and drive of the directors makes for a very successful business.”

Optimum has a turnover of £4.5m pa and employs over 100 staff. It expects to take on a further 40 – 50 staff over the next three years and turnover is expected to grow to £6m by 2013.

For further information contact Angela White on 07739 825 801 or email Angela.White@milex.uk.com

22nd June 2011

Although many businesses are still struggling and there has been no real improvement in economic conditions, there are some firms that have coped with the recession better than others. However some of those companies face additional challenges as their current owners approach retirement. If they want to realise their capital, where can the next generation of management find the funding to buy them out?

There has been a significant decline in MBO activity over the last 2 - 3 years. As a result it is likely that there have been businesses where a MBO would make sense both for the current owners and the next level of management but a deal has been put off because of the perceived lack of available funding.

Information compiled by the British Venture Capital Association (BVCA) reinforces these findings. The most recently published figures for the North West show that the number of MBOs/MBIs which took place in 2009 was down by 82% from the previous year with £140m being invested in 2008 compared with just £31m in 2009. The trend was the same across the whole country with UK figures showing that MBOs/MBIs were down by 60% in 2009 from 2008. Anecdotal evidence suggests 2010 is unlikely to see a significant improvement.

There is clear evidence that businesses which go through a MBO are then likely to prosper strongly. A study by the European Private Equity & Venture Capital Association, gathered data from a sample of companies across Europe which had undergone a venture capital-backed buyout. 84% of the companies that responded stated that without the buyout, they would either have ceased to exist or have grown less strongly. They also generally held the view that the contribution of the venture capitalist in both financial and non-financial aspects had been crucial to the post-buyout success.

The report also stated that the economic and social impact of the buyout on investee companies could be seen in virtually every one of a wide variety of indicators including increased sales and profits, higher levels of employment and employee earnings, a larger percentage of exports, better marketing and improved customer service.

MBOs aid the smooth continuation of a business because the management team already has a good understanding of the company and its potential, and have existing relationships with clients, suppliers, financial partners and, importantly, staff. In their new roles as owner managers they are driven to make the company succeed which, combined with their in-depth knowledge and experience, means that success is more often than not the reality.

MSIF’s Chief Operating Officer, Lisa Greenhalgh said: “We want businesses to know that MSIF has funding available to support buy outs and also want to encourage advisors to come and speak to us if they have clients that are looking at succession options.”

“MSIF has a good track record in supporting successful buy outs and, as well as investing, provide additional support to the companies we invest in. We understand that most management teams don’t have experience of the process and whilst the thought of becoming an owner manager is attractive, it can all be a bit daunting. Our aim is to ensure that the management team feels supported both through the transaction process and after the deal is done.”

Marion Savill, Equity Investment Director for MSIF’s Merseyside Loan & Equity Fund (ML&EF) added: “We are a hands-on investor without being overbearing. The balance must be right – the management should be left to do what they do well, but we can strengthen the existing team to help the business grow. Many of the non executives we introduce to investee companies stay much longer than initially intended because we ensure that we match the needs of the business and the individuals we introduce very well.”

Malcolm Jones, Mezzanine Investment Director for ML&EF continued: “The beauty of this fund is that the different types of investment - loan, mezzanine and equity can be mixed together to provide a cocktail of finance which is tailored to suit the individual needs of the business. Equity funding is more suitable for businesses that are likely to see rapid growth and need a big injection of capital whilst Mezzanine funding can provide a longer term option aimed at backing a sustainable business that is not necessarily looking to sell at the end of the term.

Paul Humphray, Loan Investment Director for the ML&EF added: “The loan element of this fund can also combine equity or mezzanine to provide extra working capital if it is needed. Unlike the earlier MSIF funds, the money we have now is pretty much free from ERDF restrictions so whilst on most occasions we would prefer to have co investors, match funding doesn’t need to be a certain percentage of the overall investment and we don’t have to look at things like job creation. This makes the funding available to a much wider range of businesses.”

MSIF’s Merseyside Loan & Equity Fund is looking for MBO/MBI opportunities and can also provide investment for:-

• Development capital
• Expansion
• Acquisitions

Companies must be based in Merseyside and have at least two years trading history.

We believe that investing in local businesses with strong growth potential is key to regional economic recovery. If you are running a businesses and are looking at succession options or need funding to develop and grow, or have clients or members who you think may be interested in talking to us, please get in touch.

Click here for case studies from companies which have used MSIF to finance a Management Buy Out

April 2011

A Leading UK sports company based in Merseyside has launched a national talent search which aims to change the face of British football.

AsiaEurope Football Group Limited will launch its tournament aimed at highlighting football talent from ethnic minority groups with particular focus on Asian Players. The OneCulture Football Festival, which is backed by The Football Association and major Premiership and European clubs, will be held in seven regions across the UK, including the North West, in May.

The company, which is based in Birkenhead, was set up in 1999 by managing director Majid Lavji. AsiaEurope incorporates several brands for different elements of the business including setting up and running football academies around the world and player management.

AsiaEurope has now raised a funding package, which includes a loan from MSIF through the Northwest Regional Development Agency’s (NWDA) Small Loans for Business, as well as and private investment, which it will use to launch and promote the football tournament and festival.

Mr Lavji said: “There is a huge Asian community in the UK but, apart from a couple of Asian players one being a South Korean player in the Premiership, there are no major British born Asian players and none from the sub-continent. I think that surely highlights the need to encourage Asian players and showcase the talent that is out there.

“Whilst this tournament is aimed at highlighting Asian talent we want to promote football across all cultures and be inclusive to everyone. We have had lots of support from Premiership clubs over the years as well as The FA, Sport England and Department of Sports Media and Culture and we believe the new format to the tournament could be the start of quite a radical change in British football.”

“The team at MSIF have been fantastic and very supportive of this venture. It’s a different business model to what they normally look at however they saw the potential in the company and really understood what we are trying to achieve.” MSIF investment manager Chris Walters said: “AsiaEurope is a very well-run business. The company is already doing very well with its football academies and this latest venture will increase AsiaEurope’s profile and boost business. Majid and his team are very passionate about what they do and we are very pleased to be supporting the company.”

David Read, Head of Business Finance, from the NWDA said: “Small Loans for Business is able to fund a wide variety of business propositions and we are very pleased that it has been able to support an organisation which reaches out to such a diverse audience and promotes multiculturalism. We wish AsiaEurope every success in the future.”

Small Loans for Business is being managed by MSIF in Merseyside, and is funded by ERDF and NWDA and is available across the region.

April 2011

Photo shows L-R Chris Walters (MSIF) and Clemens Wangerin (Setgo Limited)

A Liverpool-based software developer is expanding following a £50k investment from MSIF through the Northwest Regional Development Agency’s (NWDA) Small Loans for Business product.

Setgo Limited, creates games and technology for online networks such as Facebook and Hi5. Its first release Castaways has been released worldwide and has a growing audience of several thousand players. The game sees the player stranded on a mysterious island where they must survive, prosper and maybe even escape. Castaways is free but players buy virtual goods to enhance the game.

The company was formed in 2010 by managing director Clemens Wangerin, creative director Christian Lavoie and technical director Jason Chown and is situated in the Baltic Triangle at Basecamp 3 which is a space for early stage creative and digital companies. The directors were all formerly part of the executive team at Sony’s development studio in Wavertree and have 50 years’ industry experience between them.

Managing director Clemens Wangerin said: “2010 figures show that virtual goods are an established market worth $6bn globally. Most of the games selling virtual goods, including ours, operate a free-to-play business model. The virtual goods are purchased in micro transactions of £1 to £2 each.

“We closely monitor user behaviour through the Setgo Metrics Browser, our own analytics tool. This is a vital part of developing games for an online audience as the titles are never considered ‘finished’ in the traditional sense of a boxed product and are continually updated and improved.

“MSIF have been very supportive and had a good understanding of our sector which enabled us to get the funding through quickly. The loan has enabled us to secure additional finance as well as fund the continuing development, marketing and revenue of our existing title. We are also looking to penetrate new markets abroad particularly in South America and Europe.”

MSIF investment manager Chris Walters said: “Clemens and his team have tapped into a new market within the games industry and the product is already doing very well. The games industry in Liverpool is still thriving and it’s great to see small companies like this doing well.”

David Read, Head of Business Finance, from the NWDA said: “The creative and digital sector is a key part of the Merseyside economy. However it is still difficult for small businesses like this to secure the finance they need to expand and we are very pleased that Small Loans for Business fills this gap.”

Setgo currently employs six staff including the directors and expects to create at least a further 10 jobs over the next five years.

Small Loans for Business is being managed by MSIF in Merseyside, and is funded by ERDF and NWDA and is available across the region.

30th March 2011

Photo shows L-R Chris Walters (MSIF) and Jonathan Mortimore (Mortimore Enterprises Ltd)

A Liverpool-based company which provides bespoke training programmes for the construction industry has received a funding boost from MSIF through the Northwest Regional Development Agency’s Small Loan for Business product.

Mortimore Enterprises Ltd offers various programmes including a comprehensive range of pre-employment courses, apprenticeships, approved construction qualifications and short courses. Programmes and qualifications are aimed at people of all skill levels to obtain and/or sustain employment. Programmes focus on a range of traditional construction trades, including painting and decorating, tiling, joinery and plastering and specialist construction trades such as dry lining, fitted interiors and steel frame systems.

MSIF has invested £50k into the business which will be used to help it expansion plans. New premises have been indentified to house training for 30 apprentices and additional staff have been recruited, including tutor assistants and administration and sales and marketing personnel. The company was set up in 2001 by founding director Jonathan Mortimore. He now runs the company with fellow shareholders Karen Cushion and Jan Garner.

Mr Mortimore said: “In the current economic climate, companies are sometimes reluctant to take on apprentices as they can present a drain on essential resources that are needed for companies to remain competitive.”

“The construction industry has been that badly affected by the recession, companies are not in a position to employ apprentices for the usual term required for them to achieve their qualifications. At Mortimore, we have revisited the traditional apprenticeship model to ensure that working with apprentices remains attractive and adds value to construction companies.”

“We work very closely with our clients to ensure that training programmes and the delivery of them are responsive to individual business needs. This has proven vital for companies to commit to employing apprentices.”

“At Mortimore, we are also keen to ensure that our company has a positive impact on the local community. In addition to helping young people into employment, we purchase residential properties in need of renovation for apprentices to work in a real site situation. This way, apprentices develop valuable skills needed to promote and sustain their employment, whilst improving the community and generating properties that will raise capital to fund further projects.”

MSIF Investment Manager Chris Walters said: “We are delighted to be supporting a business which makes such an important social impact on Merseyside. Mortimore is run by a driven and dedicated management team and we wish them all the best for the future.”

David Read, Head of Business Finance at Northwest Regional Development Agency (NWDA) said: “Apprenticeship opportunities are hard to come by so firms like Mortimore are vital to ensure that skills and trades continue to be taught. We are very pleased that the Small Loans for Business has been able to support Mortimore Enterprises as vocational training is such an important offering.”

For more information visit www.mortimore.org.uk

16th March 2011

Photo shows L-R Chris Walters (MSIF) and Aimee Manning (Perfect Hair and Beauty)

A Wirral hair and beauty business has received a cash boost through MSIF from Small Loans for Business Investment.

Perfect Hair and Beauty was set up seven years ago by Aimee Manning. She originally operated as a mobile hairdresser but decided to expand when she began attracting clients as far away as Manchester.

Initially she hoped to go into partnership with a contact and secured premises in Bebington. However, when her partner pulled out at the 11th hour she faced losing everything as she had already invested £15k. After struggling to secure bank finance she approached MSIF which provided a loan of £10k to enable her to carry on the business alone.

Perfect Hair and Beauty offers a wide range of services including holistic therapies such as reike, non-surgical procedures including botox and all the latest beauty treatments.

Mrs Manning said: “I am so grateful to MSIF and the Small Loan for Business – without them I could have lost everything. I have now taken on six new staff all of who were unemployed before. My hair and beauty team receive constant training to keep them up to date with all the latest techniques. The aim is to offer customers a high end, classy service at mid-range prices.”

“The business has already begun to expand, securing another site at Fitness First in Bromborough where we offer all customers a 10% discount at the gym and in the salon. We also offer a new service there – the £5 Blow Out - where customers come to us straight from the showers with ready washed hair and we provide a blow dry. We have also just been awarded five stars in the Good Salon Guide.”

Chris Walters, Investment Manager at MSIF said: “Aimee has put a lot of work into making her business stand out from the crowd. She had a strong customer base in place but she could not have grown anymore without expanding and taking on staff. Since opening the premises she has attracted new customers and I believe with her on-going commitment the business will continue to grow.”

David Read, Head of Business Finance at Northwest Regional Development Agency (NWDA) said: “This is a great example of where Small Loans for Business has made the difference in helping a business grow which has been unable to access all its funding from the banks. It is tough out there but with the right type of support it is possible for businesses to succeed. MSIF have a longstanding track record of investing in Merseyside and their wide contact network really helps to make this product accessible to local viable businesses.”

Small Loans for Business is being managed by MSIF in Merseyside, and is funded by ERDF and NWDA and is available across the region.

For more information about Perfect Hair and Beauty visit www.perfecthairandbeauty.com

9th March 2011

Photo shows L-R Chris Walters (MSIF) and Martin Dev (ICTS)

A young entrepreneur from Kensington has achieved astonishing success in his first year of business, having set up with no money, staff or premises. Martin Dev, aged 24, spent four years working in sales for IT companies before starting his own business, ICTS Limited, in March 2010. ICTS initially supplied interactive ‘smart boards’ to local schools before branching out into other areas following the addition of five new staff.

ICTS now provides website design, development services - including apps for mobile phones, installs office telephone systems and offers IT installation and support services. The business received a £25k investment to assist its expansion from MSIF through the Northwest Regional Development Agency’s (NWDA) Small Loans for Business. ICTS now occupies four offices in Horton House in Liverpool, employs 10 staff and achieved a turnover of £160k in its first year.

Managing Director, Mr Dev, said: “In my previous place of work there was a negative attitude with the recession creating a doom and gloom atmosphere, but I always thought that success was achievable. I decided to go it alone with a positive attitude and it has paid off. “Our website service has been particularly successful and we believe our ability in this area is second to none. Our customers do not pay a penny until they are 100 % happy with their websites which gives our customers full confidence that they will receive a quality service. “The support from MSIF has been crucial to the success of ICTS. I was refused a loan from a bank despite them saying my business plan was very good. Without MSIF the growth of the business would have been severely hampered. “The outlook for next year is very good. There is a lot of work in the pipeline and we expect to take on a further 10 staff and grow our turnover to £500k. “I hope my story can show that people from ordinary backgrounds like me can achieve success – you just need a good idea, determination and a commitment to hard work.”

MSIF Investment Manager, Chris Walters, added: “Martin is a great success story and we are really pleased to support his venture. I am sure he will inspire other budding entrepreneurs and hopefully give them the confidence to develop their ideas.”

David Read, Head of Business Finance at the NWDA, said: “Whilst it is a difficult climate and it is hard to find funding, there is support available. The growth of small companies like this is vital to the region’s economy. I’m delighted that the Small Loans for Business product can help businesses like ICTS, which wouldn’t have been able to expand without an alternative source of finance.”

Small Loans for Business is being managed by MSIF in Merseyside, and is supported by the European Regional Development Fund (ERDF) and the NWDA.

28th February 2011

Photo shows L-R Lisa Greenhalgh (MSIF), Mark Pollard and Samantha Peddie (Vantage Law) Chris Walters (MSIF)

A new boutique law firm has set up in Liverpool with backing from MSIF through Small Loans for Business.

Vantage Law, based in Il Palazzo, is a specialist personal injury firm, set up by solicitor and managing director Mark Pollard.

Samantha Peddie, a personal injury specialist, who formerly worked for DWF and Weightmans, has also joined the company which expects to take on a further five staff during the next three years.

The company received a loan from MSIF through the Northwest Regional Development Agency’s (NWDA) Small Loans for Business product together with support from Santander as well as Mark Pollard’s own investment.

Mr Pollard said: “Being involved in an accident can be a very stressful situation. Vantage Law can provide a personal touch to take away some of the strain that larger firms simply aren’t able to do. We offer our clients a hands-on service where they can pick up the phone and always speak to someone who knows about their case.

“We have heavily invested in a sophisticated IT system which will help to minimise turnaround times and allow us to offer a 21st century approach by updating clients in real time through text and email.

“Despite being a small team, we have 25 years of experience between us in this industry so there is certainly no compromise on the quality of the service.”

MSIF investment manager Chris Walters said: “We are really pleased to be supporting Vantage Law. Despite just launching, the company has plenty of work in the pipeline. The team is very experienced and focused, and we believe they will do very well.”

David Read, Head of Business Finance, from the NWDA said: “The professional service sector is key to the Northwest’s economy and we are delighted that Small Loans for Business has been able to help Vantage Law set up in Merseyside. We wish them all the best for the future.”

Small Loans for Business is being managed by MSIF in Merseyside, and is supported by the European Regional Development Fund (ERDF) and the NWDA.

For more information about Vantage Law visit www.vantagelaw.co.uk

Merseyside Special Investment Fund (MSIF) has launched a new fund that is now ready to invest in local businesses through its in house fund management team Alliance Fund Managers (AFM).

The Merseyside Loan and Equity Fund as it will be known, is made up of so called ‘evergreen’ money - capital that has returned to MSIF from repayment and realisations from investments made by funds which launched in 1996 and finished investing in 2008. The new Fund will invest over £25m over the next five years in established small to medium enterprises based in Merseyside. Individual investments will range in size from £50k to £2m in the form of loan, mezzanine and equity finance.

Currently the Fund stands at around £10m with a further £15m estimated to be available through additional returning capital.

In recent years MSIF has been using returns on investment to firstly repay the private sector and then steadily create a legacy fund. MSIF recently fully repaid its last significant investor so that now returning capital will go directly into the new Fund.

Chief Operating Officer Lisa Greenhalgh said: “We are delighted to announce the launch of the new Fund. We have been working very hard since MSIF’s previous funds closed for investment to put the Merseyside Loan and Equity Fund in place. It is fantastic that not only has MSIF achieved all of its investment targets and social objectives, but has now reached its ultimate goal of creating a stand alone successor fund which is ready to again invest in and support local businesses.

Despite the recent changes within our organisation we have retained a core team of key staff including experienced investors who will oversee the investment decisions for the Investment Fund.” Chairman Andy Rigby added: “This is a great achievement for MSIF and AFM and good news for local businesses. Funding has been very difficult to secure in recent times which coupled with the economic downturn has hit businesses hard. Now MSIF can continue what it was set up to do – provide a much needed alternative source of finance to the region’s businesses which will in turn strengthen the local economy.”

MSIF was a unique concept when it was launched in 1996. The organisation was set up to hold the European Regional Development Fund’s (ERDF) contribution to the investment funds as part of the Merseyside Objective One Programme, an EU initiative to help under-performing regions throughout the European Union to improve their economic performance. The ERDF funds were matched with private sector monies from Barclays, the Mersey Pension Fund and the Cooperative Bank.

The success of MSIF has seen the model replicated in other parts of the UK and across Europe. During the 12 years MSIF has been established it has invested over £134m in 1,356 businesses, creating and preserving 13,511 jobs and bringing in excess of £245m private sector investment to the region.

15th October 2010

Diva Beauty Academy , based in Knowsley, has raised a funding package which includes a loan from Alliance Fund Managers (AFM) through the Merseyside Small Loans for Business Fund together with support from Knowsley Council’s Fresh Start Project and The Prince’s Trust. The money has been used to buy equipment and stock including the Garra fish used for the salon’s revolutionary fish pedicure.

AFM investment manager Chris Walters said: “We are really pleased to be supporting this business. The range of treatments being offered is really diverse and in addition the business will offer training courses to students wanting to work in the beauty industry.

“Whilst the fish pedicure is popular with celebrities and is widely available in London it is a unique offering for this area and I think it will be a big hit. Merseyside girls, and indeed boys, are renowned for the amount of time and money they spend on grooming and I am sure Diva will do very well.

“Donna is very experienced in her trade and she has worked very hard to start up her business – I think she will be very successful.”

The Northwest Small Loans for Business Fund is being managed by Alliance Fund Managers (AFM) in Merseyside, and is supported by the ERDF and NWDA.

12th October 2010

Alliance Fund Managers (AFM) the fund manager for Merseyside Special Investment Fund (MSIF) has announced that it has fully repaid the last private sector loan from its most recent round of MSIF Loan and Equity Funds.

Mersey Pension Fund provided a loan facility of £20m to Merseyside Special Investment Venture Fund 3 Limited Partnership which was launched in 2001. This has now been fully repaid with interest following several recent successful exits within the Fund.

MSIF was launched in 1996 and was set up with money from the European Regional Development Fund (ERDF) and matched private sector funding from Barclays and Mersey Pension Fund. Following the success of the preliminary funds more money was raised with the most recent funds launched in 2002 providing loan, mezzanine and equity funding to SMEs throughout Merseyside through the £40m Venture Fund, £20m Mezzanine Fund and £20m Small Firms Fund.

These funds closed for investment in December 2008 and AFM is now managing the portfolio of 225 businesses on behalf of MSIF.

Lisa Greenhalgh, AFM’s Chief Operating Officer said: “MSIF’s target was to make a positive, long-term impact on the region’s economy and AFM has done this by making sensible, commercial investment decisions. There was a fine balance to strike between ensuring all MSIF’s social objectives were met but at the same time making commercially astute investments to enable MSIF to continue investing after the ERDF money stopped and the private sector had been repaid. We believe we have done this and now all money from future repayments and investment realisations will go directly into the legacy fund which will provide funds in excess of £25m for further investment in the region. ”

Andy Rigby, MSIF’s Chairman added: “MSIF was never a short term project. During the 12 years MSIF has been established it has invested over £134m in 1,356 businesses, creating and preserving 13,511 jobs and bringing in excess of £245m private sector investment to the region.

“I would like to take this opportunity to thank all our private sector investors for working with us to help create a thriving business community in the region. Our focus is now on adding value to our portfolio of investments to ensure that the maximum amount is achieved to continue reinvestment in businesses across Merseyside.”

Paddy Dowdall, Investment Manager, at Mersey Pension Fund said: “The loan to MSIF has enabled investment in businesses across Merseyside and helped to regenerate the region whilst providing a good return for Mersey Pension Fund. We are delighted to have worked with the team at MSIF and AFM over the years and wish them all the best for the future.”

2nd August 2010

Merseyside Special Investment Fund (MSIF) has appointed a new chairman to its board. Andy Rigby who was previously a non executive director of Alliance Fund Managers, MSIF’s in-house fund management company, will take over from Professor Michael Hulme.

Andy has a wealth of experience of investing in SMEs throughout the North West. He was a founder member of the Manchester office transaction team of NatWest Ventures which at the time was one of the most active venture capital houses in the North West.

Professor Hulme had originally intended to step down as chairman in 2008 following the successful investment of all MSIF’s funds but stayed on to assist with the formation of the MSIF Legacy Funds. The foundations for this Fund, which currently stands at around £5m, are now in place and it is hoped it will be in a position to begin investing towards the end of this year.

Mr Rigby said: “I’ve been involved with MSIF for many years now and I’m delighted to be appointed as chairman. The main objective for me now is to ensure that once the Legacy Fund is launched that it is invested wisely to ensure money keeps coming back into the pot. MSIF began at a time when it was difficult to start or grow a business. We have now come full circle and once more it is a tough time for SMEs. It is a testament to the good work of the team at MSIF and AFM that MSIF has made such good returns on investment through its original funds that it is now in a position to again assist the region’s SMEs and boost the local economy.

“I’d like to take this opportunity on behalf of everyone at MSIF and AFM to thank Michael for all his hard work and dedication. He has been a fantastic ambassador for the company and we wish him all the best for the future.”

2nd August 2010

Vitaflo International Holdings Limited, a Liverpool-based company in which MSIF has had a longstanding investment, today announced that Nestlé has completed the acquisition of the company for an undisclosed sum.

Vitaflo is a global company headquartered at the Brunswick Business Park that develops and commercialises food for special medical purposes. Vitaflo’s product portfolio focuses on disease-specific nutrition, including inborn errors of metabolism and disease-related malnutrition.

Merseyside Special Investment Fund (MSIF) has been involved with Vitaflo since its inception. Vitaflo was founded by Directors Tony Partington, Bill Macnab and Maura O’Donnell in 1997 with the support of an equity and mezzanine investment from MSIF. When the company was refinanced in 2008, the company secured further finance from Alliance Fund Managers (AFM) through the MSIF Venture Fund.

With the support of MSIF and through the stewardship of the executive management team, the company has enjoyed extraordinary revenue growth and is a major employer in Liverpool. While the company has been highly successful, the Board of Vitaflo believes that through its partnership with Nestlé the company will accelerate its growth plans.

With its global presence and strong existing medical nutrition platform, Nestlé will assist the company with its plans to grow the business through further expansion into emerging markets and development of new products. Vitaflo will continue to operate as a stand-alone business segment within the Nestlé Group and the existing Vitaflo executive management team and employees will remain with the business.

Vitaflo Managing Director, Ken McLachlan, commented: “We are delighted to have attracted a partner of the quality of Nestlé to support the next stage of the development of Vitaflo. Our partnership with Nestlé will facilitate further exciting geographic expansion and product development. We look forward to working with Nestlé to grow the Vitaflo business in the years to come.”

Marion Savill, AFM’s Portfolio Director said: “Vitaflo is a huge success story for Merseyside and MSIF. It has grown organically from a small business with a great product and team to a multinational company which has created numerous jobs. I’m sure the company will continue to prosper and all at AFM and MSIF wish them every success for the future.”

Vitaflo Director of R&D and Product Development, Maura O’Donnell, commented: “This partnership with Nestlé is fantastic for Vitaflo. It represents a great vote of confidence in Vitaflo’s existing product portfolio as well as the R&D and product development capabilities based in Liverpool. The future is bright for the Vitaflo business, its staff and Liverpool as a centre of excellence for the development of products for inborn errors of metabolism and disease related malnutrition.”

Mrs. O’Donnell added on behalf of the founding Directors: “We would like to take this opportunity to thank AFM and MSIF for their commitment to and support of Vitaflo since 1997.”

Evercore Partners acted as financial adviser and DWF acted as legal adviser to Vitaflo. MSIF is managed by Alliance Fund Managers and DLA Piper acted as legal advisor to MSIF.

For more information about Vitaflo, please visit www.vitaflo.co.uk

£225k in loans issued to two growing companies

£10m Interim VCLF deals under review with several close to contract.

The Northwest Regional Development Agency (NWDA) and the European Regional Development Fund (ERDF) is delighted to announce the first Interim Loan awards just days after the first Interim equity investment was announced.

Just last week the NWDA and ERDF announced the first equity investment of £300k alongside the new structure for the long term Northwest Venture Capital & Loan Fund (VLCF). This week the first Interim Loans have been issued through fund managers AFM, and the NWDA is urging businesses not to wait for the long term Northwest VLCF but to apply now for VCLF funding.

The first Interim Loan of £100k has been awarded to Sovex Ltd. Sovex is one of the UK’s leading conveyor manufacturers. The company based in Prenton on the Wirral boasts blue-chip clients including Parcelforce Worldwide, DHL, andToys R Us. The company also has an operation in Gainsborough and in total employs almost 100 people. The company manufactures some of the most significant conveyor technical developments in the UK.

The second Interim Loan of £125k has been made to SHOKK Ltd. SHOKK Ltd is a global company that specialises in physical activity, health and fitness for the youth sector. The company has firmly established itself as the number one youth fitness brand. With over 200 facilities worldwide, more than 175, 000 young people are now involved with the concept.

SHOKK is extremely passionate about increasing the activity levels of young people across the world. Supplying a full range of specialist equipment, training and services the company has a complete offering to suit the needs of young people aged between five and eighteen.

The company, with a Northwest base in Trafford, is growing and are now taking larger enquiries and orders as their reputation increases in the UK and internationally. Plans are also in place to roll out more facilities under the successful SHOKK ‘Youth Gym’ brand and franchise model. The company requires funding to meet the growing demand and the associated working capital for stock requirements. The Interim Loan will help SHOKK to continue their high growth strategy and long term development plan, with an additional £125k loan under offer with the company.

Robert Hough, Chairman of Northwest Regional Development Agency (NWDA), said: “I am delighted to be announcing the first loans from the Interim VCLF. These loans will make a huge difference to these companies and will help them to ease cash flow and help them to grow here in the Northwest. We have venture capital, equity and loan funding in place now to help and I would welcome more businesses getting in touch and applying for this support.”

The Interim VCLF, managed by YFM and AFM, has received a high level of enquiries. Businesses interested in VCLF funding should contact Business Link Northwest.