FINANCE
UKSE area manager Sarah Thorpe and business development manager Peter Taylor .
A
A HELPING
Tees businesses look to equity finance for recovery and growth
s businesses continue to grapple with the challenges of the pandemic , many are increasingly turning to equity finance for the vital additional funding they need to move forward .
UKSE , the Tata Steel subsidiary that has supported businesses in steel areas since 1975 , is growing its investment team to meet the demand for equity finance , which plays an important part in the range of financial packages they provide to help business growth . “ Many businesses are facing high levels of debt right now ,” says investment manager Matt Stewart . “ Many have needed to take out loans and , as an accredited Coronavirus Business Interruption Loan Scheme lender , we were busier than ever , so we are aware of the level of support that has been needed .
“ As businesses plan for recovery and the future , they see equity finance – raising capital by selling shares in the company – as a positive alternative to further debt and rising monthly debt repayments .
“ There are many benefits to gaining investment from an equity provider . You get finance locked into your company from a partner who shares your business goals . At UKSE , we provide patient investments , giving time for businesses to grow and being flexible about the exit .
HAND
Investment manager Matt Stewart .
We leave business owners in control – after all , they are the experts – but we do provide ongoing advice and can help open doors to other sources of support .
“ We ’ re focused on the regeneration of steel areas , so we can often provide a more sympathetic approach to businesses creating jobs and we tailor our packages to each individual business .
“ Any profits we make from successful investments are ploughed straight back into steel areas such as Tees Valley to support further growth .”
UKSE ’ s portfolio of supported businesses has been resilient through the pandemic , with a number making successful exits from loan and equity packages .
They include Martyn Edwards and Frank Ford ( ME-FF ), the Redcar-based supplier of frying ranges to the fish and chip sector .
The company ’ s long-term relationship with UKSE has seen it benefit from patient capital and two investments , enabling ME-FF to develop its topselling range and expand in Europe , then to purchase and expand its Redcar premises to increase production and its workforce .
“ We look for businesses with strong management teams and sound business plans ,” says area manager Sarah Thorpe .
“ And our UKSE-supported companies have shown real resilience and innovation through a very difficult time .
“ We stepped up to support our portfolio and businesses across the region in a myriad of ways . As well as the capital we provide , our management input and industry connections help us to forge meaningful relationships with the teams we back .”
The UKSE team has been boosted by the recent arrival of investment executive Michael Hydari , who joins from Luxon Payments , where he was risk analyst for three years .
“ I ’ ll be working to help small businesses with loan and equity finance ,” he said . “ I can ’ t wait to meet some of the great business owners and their teams in Tees Valley .”
UKSE investments in the region now total £ 22.5m , with a further £ 12m providing purpose-built Innovation Centres in Hartlepool and Redcar housing more than 100 businesses .
For details of UKSE ’ s support with finance and premises call 01642 777 777 , email north @ ukse . co . uk or visit ukse . co . uk .
The voice of business in the Tees region | 85