Funding enables bottled gas firm to pursue its ‘airspirations’

BOTTLED gas supplier Innergy LPG has secured a six figure funding package that will enable the firm to resume ambitious expansion plans.

Leeds-based Innergy was forced to abandon its growth strategy when a high street bank unexpectedly withdrew funding at short notice.

The firm, which was set up in 2006, has enjoyed rapid growth to date achieving annual sales of more than £1m in less than three years.

A significant part of the newly negotiated package is from the Government backed Business Enterprise Fund (BEF). The remaining finance has been supplied by HSBC.

Gez Walsh, commercial director of Innergy, which boasts customers such as British Airways, Arla, Coca-Cola, John Smith Brewert, Seabrook Crisps and BritVic, said that the money would be used to further expand into the bulk LPG market.

“The bulk LPG market represents a huge opportunity for us particularly following the conclusions of a recent investigation by the Competition Commission,” he said.

Mr Walsh said that the firm has chosen to look at alternative sources of funding after previously keen main stream lenders withdrew their support as a result of the then unfolding financial crisis.

“BEF not only offered us financial support but we also benefit from its input,” Mr Walsh added.

“Our growth potential is limited only by the capital requirement, but this funding package will enable us to achieve our ambitious growth aspirations.”

As part of the deal BEF business mentor Richard Wharton – a entrepreneur who has worked with other high growth busiensses through Business Link nad Leeds Metropolitan University – has joined Innergy as a non-executive director.

Steve Waud, fund director at BEF, said that the Business Enterprise Fund was still most definitely open for business.

“With options for SME’s being limited in the current climate, we offer a real alternative to high street lenders,” he said.

“We were hugely impressed with the ambitions of Innergy LPG and the success they have shown to date. They have an experienced and motivated management team and we believe they have an excellent business model with huge growth potential.”

Mr Waud added that a package of support was being offered to help create successful businesses across Leeds, Bradford and North Yorkshire.

Since its foundation Innergy LPG has been ambitious. In 2006 September it acquired Leeds Calor Gas Centre and in July 2008 made a further acquisition – I C Greens of Knaresborough.

The firm won the 2007 NatWest Start-Up Awards and is featured in the Start-Ups HOT 100 – the UK’s 100 most exciting start-up businesses.

According to Mr Walsh even during a recession the company is experiencing few problems in uncovering opportunities.

“We can generally offer business customers’ significant savings on the cost of their bottled gas, Bulk LPG and industrial gases,” he said.

“More and more businesses are now taking our calls, even taking the initiative. With the threat of redundancy now very real, businesses are keen to improve their buying, impress the boss, and reduce the overhead. Suddenly every penny counts.”

He claims that one firm has made an annual saving of £25,000 after installing one of Innergy’s refueling units.

Despite its success the firm has its feet firmly planted on the ground.

“It is easy to become blinkered by the current economic doom and gloom. But we believe a good business will always grow, a strong entrepreneur will always create the opportunity, and an exciting business plan will always attract funding,” continued Mr Walsh.