News

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.