Envirodoor launches into new markets after investment
A £600,000 equity linked investment has helped manufacturer Envirodoor boost its turnover and launch an export division.
Managing director Mark de-Villamar Roberts bought the Hull-based family manufacturer and supplier of specialist industrial and hygienic doors business in October last year, with the assistance of Finance Yorkshire.
Envirodoor in Hull operates throughout the UK and Europe, and with its Scandinavian sister company Interdoor AB, has built-up more than 40 years of continuous trading experience in the specialist door market. It was the first business in East Yorkshire to receive an equity linked investment from Finance Yorkshire.
Envirodoor’s turnover is forecasted to grow from £2.6m in 2012 to £4m by the end of 2013 with growth also being forecasted in its Swedish sister company. It is also about to launch the world’s fastest industrial door into the UK market.
2013 has seen Envirodoor launch its export division and has received its first orders from the Far East and the Middle East. This year has also seen Envirodoor launch its own hangar door division for supplying specialist aircraft hangar doors throughout the world and is currently working on projects in the UK and Middle East.
Speaking at a Round Table discussion held at the Finance Yorkshire headquarters in Barnsley, hosted by TheBusinessDesk.com founder David Parkin, Roberts said he believes there is a lot of misunderstanding in the market place about equity backed deals.
“If I am going to grow the business, I require a degree of funding to assist me. I therefore have to look at all the funding options available, which includes equity funders,” Roberts said.
“In my opinion, it remains extremely difficult to obtain the required level of funding from the traditional clearing banks on terms that are generally acceptable and so, provided your business plan is acceptable to them, funders like Finance Yorkshire are in the market to lend to SMEs, like mine, money in order to assist them to grow.
“In the last year I have grown the business by 55% and I would not have been able to have done that without the financial support of Finance Yorkshire.”
Roberts said that while many people understand the benefits of equity backed deals, the common belief is that equity funders will impose harsh restrictions and obligations upon a management team and interfere in the day-to-day running of the business. He said in his experience, this is not the case.
“An equity funder’s primary aim is to ensure that its investment is protected,” Roberts said.
“Accordingly, it will require a degree of regular reporting. However, most funders under-stand and appreciate that they will only receive a return on their investment if the man-agement team is allowed to manage the business in their way and in accordance with their business plan.
“While our market remains extremely competitive, we are excited about our future. In the UK and Ireland the growth of our industrial door team and our service and repair team is a real focus for us over the coming years, whilst the expansion of the exporting of our enviro-plast GRP hygienic door, particularly into the Far East, South America and the Middle East is a high priority.”
Also speaking at the event was Jonathan Edgeley, who heads up fast growing IT lead generation business, Fluent Communication, in Sheffield.
After receiving a £210,000 investment from Finance Yorkshire’s Equity Linked Fund which will help to triple its workforce in the coming year, it is set to move into new premises.
The business combines telemarketing, social media and digital marketing to generate new business opportunities for its clients in the IT/technology sector.
Edgeley said: “At the start of 2012 the business moved into offices in St James House in Sheffield city centre. We planned to be there for two years, but we have already outgrown it and so to assist with our rapid growth we turned to Finance Yorkshire.
“We’ve currently got about 35 staff but expect to have 60 to 80 people next year. The investment from Finance Yorkshire enabled us to do what we needed to do to grow the business.”