News

Award-winning ARC Marine has secured a £1m equity investment from the Cornwall & Isles of Scilly Investment Fund (CIOSIF), as part of a larger £2m-plus funding round.

The deal was led by the FSE Group, the appointed fund manager for CIOSIF, with the investment enabling ARC (Accelerating Reef Creation) Marine to create at least six new positions over the next three years as the business continues to expand its operations.

Human activity is exacerbating the effects of climate change globally, with major impacts on ocean health. ARC Marine provide sustainable solutions to combat these subsea impacts.

Since 2015, ARC Marine have been developing and creating nature-inclusive products using recycled materials. The company’s first product – Reef Cubes – are the only carbon-neutral, plastic-free solution for marine habitat restoration in the world, and a sought-after solution for various global marine projects.

Regionally made using their propriety non-toxic concrete, their products are used in a variety of marine applications across aquaculture, coastal defence, reef conservation, eco-engineering and sub-sea protection. They can help reduce the carbon footprint of deployments by 90%, naturally merging into ecosystems and negating costly, often damaging decommissioning activity.

In this way, ARC Marine aims to have an environmental, economic and societal impact across the South West and beyond.

Tom Birbeck, Co-Founder & CEO of ARC Marine commented: “This funding is critical to ARC Marine being able to expand production in Cornwall, enabling us to accelerate growth to meet increasing demand from the marine renewables sector globally, as well as provide opportunities across our region. Having supportive investors such as CIOSIF will be key to underpinning our aspirations of leading the world in protecting and enhancing marine habitats from necessary man-made intervention.”

Meg Salt, Investment Manager at The FSE Group, added “With the growing global focus on carbon net zero and ocean health, ARC Marine is well placed to disrupt and exploit the emerging market for nature-inclusive design habitat enhancement and to replace traditional unsustainable subsea technologies. Their products can enhance and rebuild marine habitats, restoring biodiversity, while minimising the carbon footprint to bring their products to market. We look forward to working with Tom and helping the company achieve their expansion plan.”

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).

Ken Cooper, Managing Director from the British Business Bank, said: “We’re delighted that we are actively supporting sustainability and innovation through the British Business Bank’s regional funds. With the environment high on the global and regional agenda, tackling biodiversity loss is a priority on land and sea. ARC Marine are showing how it is possible to leave a sustainable marine habitat benefit as a positive legacy for future generations.”

John Acornley, LEP non-executive director and chair of the CIOSIF Advisory Board, said: “It is great to see ARC Marine at the forefront of eco-engineering, supported initially by Cornwall’s Marine-i technology innovation project and Plymouth University to develop their unique product for global markets, and now accelerated by CIOSIF’s investment. This is an impressive solution to a global problem and it is fantastic to see Cornwall leading the charge.”

Craig Dudenhoeffer, Chief Innovation Officer, Sustainable Ocean Alliance and Co-Founder of the Ocean Solutions Accelerator: “Sustainable Ocean Alliance (SOA) is dedicated to restoring the health of the ocean in our lifetime. We are delighted to see ARC Marine, one of our 45 alumni start-ups, complete this successful funding round. We are thrilled to continue supporting ARC Marine as they develop solutions for improving the well-being of our ocean.”

Advisers on the transaction were: Field Seymour Parkes (FSE legals) and Stephens Scown (ARC Marine legals).

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

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

Read more about ARC Marine at https://www.arcmarine.co.uk/

Case study

Nottinghamshire-based halal baby food manufacturer, For Aisha Baby Foods (For Aisha), has received a £400,000 investment to develop new product ranges and meet overseas demand.

For Aisha received the funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS). This follows on from an initial equity investment from the MEIF East & South East Midlands Equity Fund, managed by Foresight Group.

The company, which operates out of Edwalton, will use the funding to accelerate For Aisha’s expansion plans, initially recruiting a Commercial Director to develop its UK business as an immediate priority as well as to take the brand into new overseas markets, whilst the further additional two positions will strengthen the business as it grows. The finance will also allow it to focus on increasing stock levels to meet current UK and overseas demand, whilst developing new products to add to their range.

For Aisha is currently the only major commercial certified brand of Halal and Tayyib baby food in the UK. Its main aim is to help infants to broaden their tastes when solids are introduced, with blended ingredients incorporating gentle spices. The business has won 20 national food awards, including the “Made for Mums” and “World Food Innovation” awards.

Joy Parkinson, Executive Chair of the business said: “Thanks to The FSE Group for guiding us through the funding process. We are really looking forward to strengthening the team, building stock which will allow us to meet both our supermarket and online shop orders.

The funding will also enable us to conduct research to develop exciting new recipes aimed at older toddlers. We are really looking forward to the range extension and getting more toddlers experiencing lots of different tastes from our selection of varied meals.”

Ann Marie McFadyen, Investment Manager at The FSE Group, which manages the MEIF Debt Finance Fund, added: “For Aisha is an established brand with a strong existing client base. The range is readily available in leading supermarket chains as well as directly from their website. The business has the capacity to ramp up the production of their products to meet the growing demand for their brand. We look forward to seeing the brand go from strength-to-strength.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “The Midlands Engine Investment Fund is committed to supporting growth in Midlands’ businesses, with The FSE Group providing further follow-on funding to help For Aisha expand its food product offering and secure additional market opportunities. We’re delighted to see that MEIF has already backed a number of innovative businesses in the region’s thriving food and drink sector.”

Will Morlidge, Interim Chief Executive at D2N2 LEP said: “For Aisha is an amazing success story and a great example of an innovative firm investing in new product lines to support their growth ambitions. I’m delighted the Midland Engine Investment Fund is continuing to improve productivity and support job creation across the region.”

The Coronavirus Business Interruption Loan Scheme (CBILS) was managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy (BEIS). The scheme ended on 31 March and has been replaced by the Recovery Loan Scheme.

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

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

A Wellingborough-based paper honeycomb board manufacturer has secured £750,000 to expand its product range, create jobs and enter new markets.

The Alternative Pallet Company Ltd who trade as PALLITE® received funding from the Midlands Engine Investment Fund (MEIF) provided by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS). The MEIF funding will help to create 15 new jobs in the next year, with the ability to offer apprenticeships to the under-25s.

The investment will also allow the business to expand its product offering with the creation of a new furniture range - following on from its pop-up desk success. The business is also looking at entering new markets in the high-value fashion and fragile goods sectors, as well as expanding into Europe and North America.

PALLITE ® is an award-winning international designer and manufacturer of paper honeycomb board products made from over 80% recycled materials. The 100% recyclable products aim to empower customers to make sustainable choices while still achieving efficiency, productivity, and bottom-line cost improvements.

Iain Hulmes, CEO of The Alternative Pallet Company, said: “All of our products are designed in-house and are both nail and splinter free and exempt from heat treatment legislation for exported products. Although we started out as a pallet business, we listened to our customers and further developed the PALLITE® range to include collapsible pallet boxes, insulated pallet boxes, layer boards and pallet feet. The FSE Group guided us through the funding process and we appreciate their help to achieve our growth ambitions.”

Ann Marie McFadyen, Investment Manager at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “PALLITE® has an established product range demonstrating commercial traction with a large customer base. The UK transport sector produces over 25% of greenhouse gas emissions so it is great that Iain and his team are creating environmentally friendly products that will help reduce these emissions. It is encouraging to see the business enter new markets and we look forward to this next exciting stage of their journey.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “The MEIF is committed to supporting businesses who are driving the Midlands’ net-zero agenda through innovation. This latest round of funding will help PALLITE® expand its 100% recyclable product offering, create jobs and break into new markets. We encourage other businesses, across the region, seeking to expand and grow to consider MEIF funding.”

Vicky Hlomuka, SEMLEP’s Growth Hub Manager, commented: “PALLITE® is a perfect example of how a business can innovate to develop more sustainable products that not only benefit the environment, but increase customer satisfaction. It’s fantastic to see the Midlands Engine Investment Fund investing in yet another Northamptonshire based businesses to create more jobs and enabling PALLITE® to continue to develop unique product solutions in the packaging and logistics industries.”

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

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

Award-winning spirits manufacturer, Curio Spirits, has received a funding boost through the Cornwall and Isles of Scilly Investment Fund (CIOSIF).

The Porthleven-based business has received a £102,413 loan made up of £89,376 from CIOSIF and £12,767 from SWIG Finance, who work with The FSE Group, the appointed CIOSIF Fund Manager, on delivering smaller business loans.

The funding will be used to develop their premises which will enable them to offer gin tasting, tours and allow customers to distil their own gin, creating three new jobs.

The independent artisan distillery was established by husband-and-wife team William and Rubina Tyler-Street back in 2014. William, who is a qualified master distiller, saw an opportunity to create a Cornish gin that mixed Asian flavours with top quality Cornish ingredients. To add to their product portfolio, they now produce vodka and rum, and have recently launched a popular new Hard Seltzer range of canned drinks.

Curio Spirits craft their products using locally sourced ingredients and they grow their own herbs for the botanicals and forage for samphire when in season. Since launching, the business has received multiple awards, including two gold awards at the International Wine & Spirit Competition (IWSC) & four silver awards; was named Best Flavoured Gin 2019 and was nominated for Gin Producer of the year in 2017.

William Tyler-Street, Co-Founder of Curio Spirits comments: “Rubina and I are really excited to be scaling-up the business and sharing our passion through the carefully crafted range of spirits which we have created. We are looking forward to the next stage of Curio Spirits journey which includes new products and an interactive visitor experience at Porthleven with tours, masterclasses and taster events. We’re extremely excited for the future and cannot wait to get stuck in.”

The deal was led by The FSE Group, with support from SWIG Finance. Rachel Thomson, CIOSIF Business Manager at SWIG Finance, added: “We are delighted to provide this funding, which will enable William and Rubina to move into larger premises allowing them to increase production levels meeting demand. They have great products, all with a Cornish twist. The build up to Christmas should see their multi-award-winning products on shelves ready to make great festive presents.”

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).

Lloyd Brina, Senior Manager at the British Business Bank, said: “Curio Spirits have successfully carved out a niche in a highly competitive market and their multiple awards are testament to the quality of their products. We’re delighted to be backing their continued growth as they move the business to the next level.”

LEP non-executive director John Acornley, who chairs the CIOSIF Advisory Board, said: “William and Rubina have grown what was a kitchen table hobby into a significant artisan distillery. Their passion for local ingredients, focus on sustainability, and flair for innovation means they are always looking to the future and we wish them well.”

CIOSIF is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020. Further investment has come from the Cornwall and Isles of Scilly LEP and HM Government.

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

Coalville-based children’s clothing business, Tiny Explorer Apparel, trading as the Töastie Kids brand, has secured a £300,000 investment to develop a new product range and support a comprehensive marketing campaign.

Töastie Kids received the funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

The funding will allow the business to retain its current workforce, while creating 10 new positions within the next 3 years, enabling the firm to fulfil new contracts. Töastie Kids also plans to increase the size of its current premises to accommodate future orders.

Töastie Kids manufactures a range of outdoor clothing for children from birth to 14 years. Its main aim is to encourage children to explore the outdoors for better physical and mental health. By the end of 2021, the business plans to have 100% of its apparel range made using at least 40% recycled material. The innovative range includes puffer jackets, gilets, onesies and accessories.

Töastie Kids has launched its range in Next, Harrods and was selected by Selfridges for its ‘Project Earth’ and ‘Bright New Things’ initiatives. The brand has recently been recognised within the fashion industry as platinum winner of “Best Children’s Fashion Brand” in the Junior Design Awards category.

Lucinda Waite, Co-Founder and Director of Tiny Explorer, said: “We believe that every child should have the freedom to explore nature to their hearts content without restriction, and creating products to allow them to do this should not cost the environment a heavy toll, which is why we set about launching Töastie Kids. The range is made in small quantities and for every order placed, we send along with it a seed-bearing lollipop which the children can plant in their gardens or window boxes and watch it grow.”

Andy Moss, Head of Fund at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “The world of fashion is an incredibly fast paced industry and founders, Lucinda and Kirstie, are both very experienced individuals operating in this sector, which is forecast to continue growing. The team has a clear mission and purpose for their sustainable brand which has seen the range perform well in high-end retailers including Harrods, Trotters and Childrensalon. We look forward to the next stage of its journey.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “MEIF is actively supporting businesses that are pushing forward the region’s low-carbon and sustainability agenda. We’re delighted to see another manufacturing business, in the textiles sector in Leicestershire, being supported and launching its new product range as it gears up for growth.”

Kevin Harris, Chair of the Leicester and Leicestershire Enterprise Partnership (LLEP), said: “I am very pleased to see another Leicestershire innovative clothing manufacturer get the funding package they need from the Midlands Engine Investment Fund to support their growth plans. This is exactly why the LLEP supports this funding initiative.

“It’s thanks to businesses like this that Leicester and Leicestershire are at the forefront of UK garment manufacturing. This award-winning business is showcasing that locally produced products tick all the boxes when it comes to sustainability, ethical practices and quality.”

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

The Coronavirus Business Interruption Loan Scheme (CBILS) was managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy (BEIS). The scheme ended on 31 March and has been replaced by the Recovery Loan Scheme. 

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.