MEASUREMENT & MONITORING
OPERATIONAL EXPANSION
LABFACILITY
Labfacility turns up heat on international growth after
securing backing from Finance For Enterprise and the
Northern Powerhouse Investment Fund
The UK’s leading manufacturer of
temperature sensors is set to expand its
operations in South Yorkshire after securing
a six figure lending package from NPIF – BEF
& FFE Microfinance, which is managed by
Business Enterprise Fund (BEF) and Finance
for Enterprise (FFE) and part of the Northern
Powerhouse Investment Fund.
The funds provided by Finance for Enterprise
will be used to help Dinnington-based
Labfacility acquire the adjacent 6,000 sq ft
premises to its existing manufacturing and
stores facility as it targets future growth
within the export sector. The property has
been secured on a 10 year lease and will
increase the size of the company’s site to
18,000 sq. ft.
Responsible for producing a range of
more than 5,000 temperature instruments,
sensors, and couplings, Labfacility
manufactures more than a million
products each year which are sold in 120
countries across the globe and used in the
engineering, pharmaceutical, aerospace, oil
& gas and food production industries.
In recent years the company became mindful
of the potential uncertainties caused by
delays in Brexit. Working closely with growth
accelerator manager Jim Scott, the company
began exploring international growth options
in markets which would be largely unaffected
by the current political uncertainties and
began exploring non-EU markets. Export
orders now account for over 25% of the
company’s sales, resulting in regular orders
being placed by businesses based in
the US, China and Australia.However, in
order to meet demand, Labfacility knew it
needed additional working space. When
a neighbouring unit became available the
company turned to Finance For Enterprise
for help, recognising that a quick deal was
needed in order to help it achieve its future
growth plans.
The six figure loan has enabled Labfacility
to not only secure the new property, but
invest in upgrading the building as well
as purchasing new equipment, enabling
it to boost production, as well as creating
additional new roles including a planned six
apprenticeships within the business as the
company sets its sights on future growth.
Labfacility was launched in 1971 by Norman
Riddett, from his family home and has now
grown to employ some 80 people across
sites in Dinnington and West Sussex.
Under the leadership of Norman’s son,
Martin, Labfacility pioneered its temperature
sensor manufacturing operations in
Dinnington in 1991 after acquiring a local
competitor. Since that time, the number of
staff employed in South Yorkshire has risen
from just three employees to over 40 with
further recruitment anticipated.
Martin Riddett, Managing Director, Labfacility
said:
“The growth and success we have achieved
in recent years is very much the legacy of
our work with Jim Scott, who helped us to
understand the possibilities and opportunities
available within the export market. Sadly,
Jim passed away before our latest phase of
growth had been fully realised. The success
we are achieving today is a testament to his
hard work and dedication.
Alan Scott, Senior Investment Manager,
Finance For Enterprise said:
“Businesses often find their growth plans
stifled because they are unable to access
lending from traditional high street lenders.
Entering the export market can be lucrative
but it isn’t without risk.
“At a time when the manufacturing sector
has been particularly hard-hit as a result
of the uncertainties surrounding Brexit
and possible future trade deals with the
EU, Labfacility was quick to seize the
opportunities offered by entering into new
export markets, but crucially targeted areas
outside Europe, ensuring that the impact of
Brexit could be mitigated. We have worked
with Labfacility for a number of years and the
approach they have pioneered has resulted
in the company achieving significant growth
in overseas markets, enabling the company
to invest in new premises and jobs within
South Yorkshire.
The Northern Powerhouse 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.
For further information, please visit www.labfacility.com
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PECM Issue 43