£300,000 NPIF funding provides a lift for manufacturer
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A manufacturing company has secured a £300,000 loan from NPIF – Mercia Debt Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund.
Palamatic has seen a surge in orders for its lifting and handling equipment from the pharmaceutical industry, food producers and medical manufacturers which are part of the vaccine supply chain.
There has also been a rise in sales of equipment for handling timber, Perspex and other building materials, as shops and workplaces are refitted and consumers focus on home improvements.
The funding will provide the Chesterfield-based business with additional working capital to support its growth and create two new senior management roles.
Palamatic, which employs 54 people in the UK, exports machinery to over 25 countries and has a US subsidiary in North Carolina.
The company was established in 1985 by Stewart and Sue Bennison, who have now been joined by their son Matt and daughters Andrea Fincham and Melanie Archbould.
Archbould, who is the company’s CEO, believes the increase in demand is likely to continue as factories seek to adapt working practices in view of the pandemic and step up automation, especially with the introduction of tax incentives to encourage capital investment.
She said: “Our equipment helps companies to ensure social distancing, improve health and safety and increase productivity – all the things that businesses are being encouraged to do right now.
“We have a very strong order book and the future looks bright. Funding from the Northern Powerhouse Investment Fund will not only ensure we have sufficient capital in place to support our ongoing projects but also give us additional headroom to strengthen our team and invest in research and development.”
Pete Sorsby, of Mercia, added: “Palamatic’s lifting and handling equipment is at the cutting edge of design and the company is clearly on a growth curve. Having the right finance is essential for growing businesses, especially those involved in large design and build projects that require large amounts of materials in the early phases.
“While the company has an existing finance facility in place, this additional funding will help support some of its longer-term, more complex projects and allow the team to invest in the future of the business.”
Sean Hutchinson, at British Business Bank, said: “Since its launch in 2017, NPIF’s impact on businesses has been wide-ranging, providing funding to launch new products, employ new staff, enter new markets and acquire new facilities.
“We are pleased that NPIF is continuing to unlock the North’s growth potential by supporting small growing businesses with vital investment.”
Karl Hodson of BTG Advisory provided fundraising advice to Palamatic.