Energy firm secures £3m funding as it sets sights on major growth
ENERGY solutions manufacturer Energy Management Systems (EMSc) has secured a £3m funding deal which will support its aim to become a £60m company in the next five years.
EMSc, has a turnover of £12.8m and says the funding package from The Royal Bank of Scotland (RBS) will help to strengthen its position as a market leader in energy saving technologies.
Sheffield’s EMSc (UK), which makes energy saving devices for Premier hotels, the Whitbread Group and Asda, as well as international companies such as the Investec Bank in South Africa, employs over 100 people and has manufactured more than 4,000 VO systems installed in 15 countries. It moved into its new facility at Smithywood Business Park in Sheffield last year, increasing manufacturing capacity by 500%, and with the new funding in place the company is now capitalising on significant demand from both domestic and international markets.
Stuart Watson, Simon Bellamy and Darren Marshall from RBS structured the funding deal. Jason Whitworth and Mike Clarke from the corporate finance team at accountancy and business advisory firm BDO provided advice to EMSc on the deal. Mark Pownall at Baker Tilly provided due diligence.
Squire Sanders advised EMSc. The team was led by partner Richard Hunt alongside Jessica Kolhorn (corporate), Jitesh Lad (corporate), Peter Morley (tax) and Matthew Ingram (banking).
Alex Mardapittas, CEO at EMSc, which was recently named as the UKTI Exporter of the Year 2013, said: “The global community has ambitious strategies to reduce reliance on fossil fuels and, being the only company in the world with a patent on a voltage optimisation (VO) product, our technology can significantly help in achieving these goals. These funds will enable us to grow in our existing UK and overseas markets and target other markets such as the USA and China.”
Stuart Watson, director at RBS, added: “The RBS team was delighted to support this business. It is always good to see a local manufacturer with a product that is both innovative and energy saving competing successfully abroad.
“Our loan structure reflected the forecast cash generation of the expansion plans rather than rely on a more traditional security based approach.”
Dean Gormley, head of Banking & Finance at law firm Irwin Mitchell, advised RBS on the deal.
Jason Whitworth, M&A partner at BDO in Yorkshire, said: “The funding gives EMSc a fantastic opportunity to build on its growth ambitions and we expect to see the business go from strength to strength.
“The UK remains its heartland, but EMSc is rapidly building an impressive international network and, with a new office in Australia, is receiving enquiries on a daily basis from around the world.
“This is another example of an innovative Yorkshire manufacturing business, which has set its sights on ambitious growth in a dynamic market.
“EMSc demonstrates that the “Made in Sheffield” stamp is still synonymous with quality and cutting edge design. We look forward to working with the management team as part of its ongoing growth strategy.”
