Global manufacturer Fox Wire launches into new markets

FOX Wire, the UK’s largest manufacturer of engineering wires in stainless steel, nickel alloys, copper, brass and aluminium, is launching into new markets after receiving an investment from Finance Yorkshire.

To help it push forward with its growth strategy, the Sheffield-based business, which employs over 50 people, secured an investment of £1m from Finance Yorkshire’s Equity Linked Fund, alongside £3.2m debt and working capital facilities from HSBC. It also bought in a new management team in who became shareholders. The firm exports into Europe from its UK base in Sheffield and through its German subsidiary, Fox Wire GmbH.

Director Oliver Baker said to grow a business into a successful, thriving company requires making difficult decisions.

Baker bought the £12m turnover business in 2007 and speaking at TheBusinessDesk.com and Finance Yorkshire’s Round Table event, said he has since been repositioning the business as an independent concern placing it in more specialist markets than it has historically been in.

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“I approached Finance Yorkshire at the end of last year to help me raise some money for the new growth plan based on certain new markets and new products, and at the same time bought in a new management team and they became shareholders as part of the transaction, so it has just been through a very formative part of its development,” Baker said.

“The future holds growth after a number of years of quite difficult trading conditions particularly in Europe and the plan is to capitalise on Fox Wire’s really fantastic brand name recognised globally and enter into new markets such as nuclear and aerospace.”

Baker said he is now on a journey through a very “demanding” market place and refashioning the business into a growth business, had to involve raising some money though the equity fund.

“It is a big decision but you have to work out who you are and what you want from your business,” he said. 

“We need to take more difficult decisions to become competitive. You have to work out what you want from the business – is it to be part of a successful business or have 100% ownership? I don’t regret my decision for a moment. My people know I have done everything I can to create a successful business.”

The businessman also highlighted that he doesn’t think raising money should be made easy.

“It is incumbent of management teams to put together a plan which merits funding and if you do that, you get a perfectly good reception,” he said.

“There seems to be something about finance that people think it is not their job, but I think it is. If you need finance, you have to go and get it.”

Pete Mills, a founder of Calls 9, which specialises in mobile app development, website design and digital consultancy, said he thinks the finance environment is how it should be.

“I think the finance market we operate in now is how it should be. If we can’t afford something we don’t go out and buy it At the moment, we are happy running the company and gaining more customers.”

Calls9 was crowned winner of the Newcomer award at this year’s Yorkshire Business Masters.

Dave Burkill, managing director of Disposables UK, which manufactures and distributes paper disposables and associated cleaning and hygiene products for the ‘away from home market’, said his business is seeing its “best ever” year, helped by its continuous investment.

“The business has had its best ever years. We have seen what the banks have done to some of our customers by changing rules overnight so we are lucky that we are a well-financed business and the family have always invested back into it. The family are committed to the business for the long-term.

“We have targeted 12% to 15% growth for the next year and we have already got that in the bag. We are a big growth business and are now ready to grow rapidly.”

The £16m turnover business based in Meltham near Huddersfield has recently relocated from four different sites into one.

The company, was previously based across four sites totalling 107,000 sq ft. The strategic move to larger premises allows Disposables UK to consolidate its operations and provide a faster turnaround time on producing goods.

The move, which cost in the region of £700,000, is part of Disposables UK’s five year growth plan to almost double its current £16m turnover to £30m by 2018.