Engineering firm sets sights on global expansion after securing investment
A Hull-based specialist engineering firm has secured a £250,000 investment package which will support its growth in overseas markets
AFOS develops, supplies, installs and commissions stainless steel equipment for the food and medical sectors, and has a range of customers in both global markets which have helped it reach an annual turnover of around £3m.
The firm, which employs 22 people and is celebrating its 70th anniversary, was subject to a management buy-out towards the end of 2017, with chairman Mike Sutton selling a majority stake in the business to four members of the management team, who became co-directors.
As part of plans to continue to grow its global market share in both the food and medical sectors, and to widen the range of services it can offer, AFOS has worked with fund management firm FW Capital to secure a £250,000 Nothern Powerhouse Investment Fund investment.
AFOS began as a manufacturer of traditional fish smoking kilns, and still provides a range of such equipment today, although they are now equipped with state-of-the-art Siemens microprocessor controls.
Its products are used across mainland Europe and as far afield as New Zealand, where discussions are currently ongoing with a major food sector firm on opportunities to enter the Chinese market together.
AFOS also has 35 years’ experience of supplying hospitals, medical & veterinary schools and laboratories too. Its equipment can be found across the Middle East, Far East and North America, as well as closer to home, and it also operates a service arm for this side of the business to further enhance the revenues that can be generated from it.
Mike Sutton, chairman at AFOS, said: “AFOS has an excellent reputation in a range of niche markets, and a long-standing track record which demonstrates how we live up to it for customers around the world.
“Our focus is on continuing to grow our profitability through maximising the use of our state of the art process technologies and taking advantage of opportunities to build new partnerships and product offerings both at home and overseas.”
Keith Charlton, investment executive at FW Capital, added: “AFOS has an impressive track record within its target markets and every opportunity to make further progress on many fronts in the future.
Phil Glover, Growth Hub Programme Manager for the Humber LEP, said: “I am delighted to see yet another company benefit from capital made available through the Northern Powerhouse Investment Fund. It is particularly satisfying to see the Fund Managers help a long standing local firm such as AFOS extend their markets across the globe.
“Their robust business plan and excellent management team offered us an excellent investment proposition and we believe the working capital we’re providing will see AFOS securing even greater commercial success.”
