News

The global pandemic COVID-19, has been described as the worst economic crisis for 90 years, hitting UK SMEs particularly hard. Many were forced to furlough their employees or cease trading altogether.

No doubt the months ahead will be challenging, in ways that could not previously have been predicted. In these uncertain times, whilst the road to recovery is a long one, it is important to remember that UK SMEs are both resilient and creative.

Despite the pandemic and difficulties faced by Cornish SMEs, The Cornwall and Isles of Scilly Investment Fund (CIOSIF) has continued to support eligible businesses in the region, from a wide range of sectors.

SMEs have been able to secure either debt or equity funding to help their business grow and succeed. Over the past few months during lockdown, CIOSIF has completed four new deals:

Penryn based Red Planet Publishing Ltd an independent publishing house, producing books, e-books and music (£80,000 debt)

Bude based Service Robotics Ltd created the UK’s first companion robot, designed to support vulnerable and elderly people (£300k CIOSIF equity)

Penryn based Glas Data Ltd developed a data management and decision support tool for agriculture (£140k CIOSIF equity)

Codices Interactive Ltd designed an interactive video platform for live streaming (£250k equity)

Three follow-on investments also completed during the pandemic with more deals expected to complete in the next quarter.

Redruth based Wildanet Ltd, received further investment which will enable them to continue with the roll out of high-speed broadband across the county

Truro based Clinical Designs Technologies Ltd received follow-on funding to assist them with the rollout of their Urine Testing System both in the UK and abroad

Truro based software company, Colateral (formerly known as Swoop Applications Ltd) received follow-on funding to support their continued Growth

As well as deal completions, the CIOSIF team are poised, ready and available to enable SMEs in the region to get back on track, achieve accelerated growth post COVID-19 whilst adapting their business to the current “new normal.”  Their regular informative webinars, advice and support groups have permitted them to provide this level of care to existing clients, whilst also reaching out to the wider region

Ralph Singleton, Head of Fund at The FSE Group, adds: “Over the past two years,The Cornwall & Isles of Scilly Fund has supported 23 local businesses with £5.4m of investment and enabled a further £4.2m of external investment, bringing total investment into the region via CIOSIF of £9.6m. This investment has led to the creation of 82 new jobs within the region. The fund has invested in a wide range of sectors including digital technology, healthcare, artisan baking, online retail, support services, recreational activities and manufacturing.    

The fund has also spent considerable effort helping companies become “investment ready” which can take time but will provide better long-term opportunities for the Company, the Fund and Cornwall.”

The £40m Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25,000 to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) and is operated by appointed fund managers The FSE Group.

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

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

Hampshire based company Zennergy International Ltd., has received £125,000 from the Enterprise M3 Short Term Trade Finance Loan Scheme. The funding will be used as working capital against a specific contract based in the Middle East.

Zennergy was established in 2010 by Phil Holland, who decided to start his own company after gaining 40+ years’ experience in the industry and international recognition as a supplier of Infrastructure Solutions to the Gas Power Market.

The mission at Zennergy is clear: “To deliver first class, gas industry solutions and services to customers worldwide.” Working alongside their associates, Zennergy offer worldwide solutions. Delivering complete turnkey gas infrastructure solutions through innovative engineering design, consultancy, project management, installation and ongoing operation and maintenance, handling million-pound projects and turning them round within 16-20 weeks.

One of the company’s strengths is the speed at which they are able to respond to their client’s specific requirements by using their capability, knowledge and agility.

Phil Holland, Managing Director of Zennergy Ltd commented: “Energy need is becoming much more decentralised with smaller power systems needed for meeting peak period requirements, and this fits well with our expertise. Working with our associated companies, we can provide quality, fully certified and tested products on all projects undertaken as well as ISO 9001 and Gas Safety Certification. Our thanks to Derek for giving us sound financial advice about how best to fund an overseas contract which we have recently been awarded.”

Derek Ellis, Fund Manager at The FSE Group, which manages the Enterprise M3 Short Term Trade Finance Loan Scheme on behalf of Enterprise M3 Local Enterprise Partnership (LEP), comments: “It was a pleasure to be introduced to Phil and to be able to support his new contract. The company has a successful track record of working on projects for gas utilities, gas to power projects and industrial applications. I wish Phil and his highly skilled workforce all the best for the forthcoming contract.”

Kathy Slack, Director, Enterprise M3 LEP, comments: “Gaining inroads in overseas trade is critically important at this current time and we know that exporting goods and services can lead to productivity improvements that are so vital for our economy. I’m pleased to see our Short Term Trade Finance Loan Scheme helping Zennergy to fund their overseas contract. In difficult economic times it is encouraging to see companies in our area continuing to expand their work.”

The Enterprise M3 Short Term Trade Finance Loan Scheme is part of the Enterprise M3 Funding Escalator, £10million initiative funded by Enterprise M3 LEP. The escalator, which also includes an expansion loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.

For more information about Zennergy Ltd, visit: http://www.zennergy-int.co.uk/

Since establishment in 2002, The FSE Group has been operating at the heart of the SME community helping them to realise their growth ambitions.

This challenge has never fallen into greater focus than in these current exceptional times.

It may be that your business has had to pause temporarily due to COVID-19 and you may now be thinking about gradually returning to work, re-introducing employees back to the workplace, re-establishing supplier relationships and re-commencing contracts whilst adjusting to business as (un)usual.

In the “here and now” cashflow and financial concerns could seem more prevalent than before and it might be that your business could benefit from a short-term cash injection, but you may not be sure of all the options available to you.

One of the products within The FSE Group’s portfolio, offered in the South East for which your SME could be eligible is the Trade Finance Loan Scheme.

South East – Short Term Trade Finance Loan Scheme

The term trade finance loan is available to eligible SMEs who are established as a limited company and have a material part of its operations located within the Enterprise M3 or Thames Valley Berkshire area. 

Loan amounts range from £50,000 - £300,000 and are repayable over 3 – 12 months.

You could be eligible for this scheme if you have a short-term trade funding requirement that may include the following criteria:

• Working capital for specific new contracts or orders, which would enable your business to fulfil orders or contracts
• Short term irregular invoicing patterns from specific contracts/projects
• Up-front tooling requirements for identifiable medium-term contracts or export activity
• Cash-backing for performance bonds/guarantees: temporary credit enhancement to enable banks to support SMEs in the tendering and delivery of significant/strategic contracts

Surrey business Symvolli, has secured £200,000 from the Enterprise M3 (EM3) Expansion Loan Scheme, to fund various activities including business expansion, product development and the creation of new positions within the rapidly growing business.

Symvolli, established in 2004 by George Petri, who has over 35 years’ experience in software development, spotted a problem in the market.  Many professional and technical services sector SMEs Symvolli was working with also experienced this problem, namely the inability to access an affordable, multi-functional operations cloud-based system incorporating Customer Relationship Management (CRM) and Enterprise Resource Management (ERP) systems in one place.

Historically, the varied and sometimes manual processes involved in running a business, were both dis-jointed and reliant on unconnected systems combined with process driven tasks, such as complex spreadsheets which could result in the duplication of data entry distorting the SMEs reporting.  As businesses look to scale-up to reach their next growth level, it is paramount that they feel confident that the source data used for reporting purposes is accurate and can be accessed easily and efficiently.

The company’s innovative, leading edge and cost-effective web-based solution focusses on providing SMEs with the processes and tools needed to manage their businesses better. Symvolli is different in three key respects: it offers total business support, product and services life-cycle management and business intelligence. It amalgamates all the core data in the cloud, negating the need for SMEs to use multiple applications within a business.

George Petri, Director of Symvolli Ltd commented: “Refining every process in a business will make it far more efficient for SMEs to identify possible obstacles to their progress and re-focus their strategy. Symvolli’s reports will provide the ability to convert data accurately and instantly into knowledge. Having the processes and tools which they need, from one source, will help SMEs make informed decisions to grow their business. I would like to thank James for his help in securing this investment and for enabling us to further develop the solution to include Environment and Health and Safety, Governance, Risk and Compliance, as well as industry specific applications. The investment will also permit us to bring on new team members to help us develop the product, in turn, Symvolli can then support other SMEs with their own growth and expansion plans”

James Edwards, Senior Fund Manager at The FSE Group, which manages the EM3 Expansion Loan Scheme on behalf of Enterprise M3 Local Enterprise Partnership (LEP), comments: “It was a pleasure to work with George and his Surrey based team to help them secure the investment needed to help Symvolli reach the next level of their own growth. Recently the business has been working on a mobile friendly app so that SMEs can have access whilst on the go which is an excellent addition to the company’s current offering. I wish the team every success with the next stage and look forward to seeing their progress.”

Kathy Slack, Director, Enterprise M3 LEP, comments: “I am really pleased that our Expansion Loan Scheme is helping Symvolli. Many SMEs are trying to adapt to this new post-Covid environment and innovative, cloud-based solutions which provide a tangible benefit to their workforce are vital to that. I look forward to seeing their continued success.”

The EM3 Expansion Loan Scheme is part of the Enterprise M3 Funding Escalator, £10million initiative funded by Enterprise M3 LEP. The escalator, which also includes a short-term trade loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.

For more information about Symvolli Ltd, visit: www.symvolli.com

Truro based software company Colateral has successfully completed its latest funding round including further investment of £200,000 from both the Cornwall and Isles of Scilly Investment Fund (CIOSIF) and existing corporate investor, SMP Group PLC. The Future Fund, which supports innovative UK companies with growth potential, has also committed £400,000.

Previously known as Swoop Applications, the company has recently rebranded as Colateral in order to improve market relevance. Their market leading Software-as-a-Service (SaaS) platform seamlessly manages instore marketing campaigns for retailers, cutting waste, improving communication with stores and helping to drive increased sales with better display compliance. They work with some of the UK’s leading retailers including Paddy Power, The Works and WH Smith.

During the coronavirus pandemic retailers have used Colateral to optimise and streamline instore marketing processes and minimise the production of unused print materials. Latest product developments include the ability to send personalised visual instructions to store teams and to track and analyse display compliance with new campaigns.

Robert Salvoni, Colateral Chairman, said: “When we first set out to develop our platform, it quickly became clear that instore marketing was one of the most common retail challenges without a good solution. Colateral is an end-to-end solution, capturing the needs of individual stores and tailoring campaigns to match. As the business continues to grow and expand, even in these unprecedented market conditions, we are delighted to have received additional funding from CIOSIF and our private investors, allowing us to continue with our recruitment drive, further developing our already strong and robust team. Recently our product development has focused on the implementation speed of the platform and we look to forward to strengthening this with this recent round of investment.”

Ralph Singleton, Head of Fund at The FSE Group, said: “We are pleased to be continuing to support an innovative Cornish company that is starting to gain traction with some of the largest retailers in the UK. Against the backdrop of the weak high street, Colateral offers its customers the ability to save costs, become more efficient, reduce waste and meet exacting governance requirements.  Further product development and new customer wins will be key to future success. We were delighted to be able to provide a second funding round to further support Colateral on their journey.”

The £40m Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25,000 to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) and is operated by appointed fund managers The FSE Group.

Sarah Newbould, Senior Manager at the British Business Bank, said: “Investment from both CIOSIF and the Future Fund illustrates the support available to businesses in the region looking for equity investment, with this latest funding round helping Colateral with its ambitions to build and scale the business, as they continue to deliver value to customers in a sector that has been hard-hit by the pandemic.”

LEP non-executive director John Acornley, who chairs the CIOSIF Advisory Board, said: “Cornwall has a growing reputation for nurturing tech companies and Colateral is a great example of that. The fund’s latest investment follows a £600,000 equity stake last year and it’s vital that we continue to invest in growing businesses that create quality jobs and showcase UK innovation in global markets.”

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

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