Specialist manufacturer secures funding to expand overseas

A Harrogate-based manufacturer of orthopaedic braces has secured a £2m eight-year unsecured loan to reach new markets.

Neo G will use the loan to continue its expansion across America and launch in new markets including China and Scandinavia with the loan, secured through alternative SME credit specialist Caple.

As a result, Neo G expects its revenues to almost double this year to reach nearly £30m.  The company has grown almost tenfold in eight years, from revenues of £2-£3m.

Neo G designs, manufactures and distributes premium quality medical devices including orthopaedic braces and supports, compression hosiery, foot care and first aid products.  The products provide relief from a number of conditions such as arthritis, carpal tunnel syndrome​ and​ back pain.

Founded in 2007 by Paul Starkey, it is the UK’s leading brand of orthopaedic supports sold through retailers such as Boots, Superdrug and Lloyds Pharmacy.

Starkey, founder and managing director of Neo G, said: “We are the fourth largest medical device company in the US in our sector.  But we are only just scratching the surface.  We want to be number one.  The loan through Caple enables us to grow our presence in America, expand into new markets and continue our impressive growth trajectory.

“The unsecured nature of the loan Caple has given us access to means we can finance growth without having to give up equity or control of the business.  We know what we need to do, we just needed the funding to do it.”

Dominic Buch, managing partner and co-founder of Caple, said: “Neo G has a strong management team, a clear strategy for growth and an already successful international business.

“To continue its expansion in America and sell into new markets it needed growth funding.  But, like many UK SMEs, Neo G did not have physical assets to access additional secured lending.  The unsecured loan Caple has facilitated will enable Neo G to unlock its potential and grow globally.”

The company has offices and warehouses in the US, Canada, and Amsterdam.  It exports to 18 counties worldwide and has relationships with some of the world’s largest retailers including Walgreens, Target and Rite Aid.

Neo G’s patented products are registered with the US Food and Drug Administration, Health Canada and the Medicines and Healthcare products Regulatory Agency in the UK.

The loans Caple facilitates are part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform, which enables SMEs to access funding from institutional investors.  BNP Paribas Asset Management aims to provide €1bn per year in funding to SMEs across Europe.

Will Arnold, partner at corporate finance advisors Sentio Partners, supported Neo G. Arnold said: “The team at Neo G have made fantastic progress building a brand that leads the UK market in its chosen categories. Neo G’s innovative and quality products are now making substantial inroads into international markets, most recently with some significant new customer wins in the US. We are delighted to have had the opportunity to support the team in securing the funding that they require to support their growth.”