Investment and MBO help forge growth at manufacturer

Rotherham-based Castings Technology International (Cti) is expanding following a management buy-out of the business from the University of Sheffield in January.

The business also secured a £2m fundraising round led by Nucleus Commercial Finance and NPIF – Mercia Debt Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund (NPIF).

The company is a provider of manufacturing, technology, expertise and services to the cast metals sector and global supply chain.

Since completing the deal, funding raised has allowed the company to grow rapidly.

It has invested further in product development; added to its sales and marketing infrastructure and resource; and expanded its manufacturing facility, which is based at the University of Sheffield Advanced Manufacturing Research Centre (AMRC).

Earlier this year, as a direct result of investments made, Cti produced the largest single component it has cast in its 98-year history.

Made from commercially pure titanium, it is believed to be the largest ever titanium part poured into a ceramic mould.

Tipping the scales at 320kg (705lbs), the casting formed part of an order from a Japanese customer and will be used as a high-pressure pump in a corrosive industrial application.

Experienced engineer Richard Cook (managing director) and local entrepreneur Kevin Parkin (chairman) lead Cti’s management team.

They are supported by a non-executive director team that includes foundry innovator Professor John Campbell, Graham Honeyman – former chief executive at Sheffield Forgemasters – as well as Brian Robb and Steve Irwin, two castings experts who have worked for many years with Rolls-Royce.

Parkin said: “It has been an exciting year for us, as the management buy-out marked one of the most important moments in our 98-year history.

“In tandem, thanks to the support of the Northern Powerhouse Investment Fund, Mercia and Nucleus Commercial Finance, we have been able to push forward with our growth plans.

“We are innovators by nature, and this has allowed us to fulfil world-first orders and deliver on contracts for some of the world’s biggest brands.”

Sean Hutchinson at the British Business Bank added: “The Northern Powerhouse Investment Fund is proud to have supported Cti in taking this important step, through NPIF – Mercia Debt Finance.

“The deal demonstrates the impact investment can have here in the North, helping to facilitate growth and create new opportunities, and we look forward to following Cti’s progress.”

The Northern Powerhouse Investment Fund has provided a significant loan to Cti to support the growth business plan, with Andy Tyas and Pete Sorsby from the team at Mercia Asset Management leading on the transaction on behalf of the fund.

Working capital facilities were provided by Financial Institution, Nucleus Commercial Finance.