Hybrid car company races ahead with £2m investment

HYBRID electric vehicle firm Magnomatics is on its way to becoming a major player following a funding boost of £2m.

Finance Yorkshire has provided a second Equity Linked investment of £933,000 alongside £1.1m from Magnomatics’ co-investor IP Group plc.

Combined, Finance Yorkshire and IP Group provided funding in excess of £2m in 2012.

A spin-out company from the University of Sheffield, Magnomatics’ range of patented products includes high efficiency, ultra compact motors and generators, as well as magnetic transmission systems.

The business is supplying its products to the renewable energy, aerospace and marine sectors and is preparing to hit the hybrid electric vehicle market with its ‘MAGSPLIT’ transmission – a combination of a permanent magnet motor and magnet gear which is more efficient, smaller and lighter than competitor products.

David Latimer, chief executive of Magnomatics, said: “This second investment will enable us to further develop our MAGSPLIT product so that it is closer to be ready for sale to the hybrid electric vehicle sector.

“We have built and tested several of the MAGSPLIT in the last two years and have completed Innovate UK projects with Ford and Volvo and we now are at the point where we are attracting global interest.”

Magnomatics employs a team of experienced and highly qualified engineers at its base in Sheffield. It was advised on the funding deal by Andrea Cropley of Irwin Mitchell Solicitors.

Finance Yorkshire investment director Andrew Burton said: “Magnomatics is a highly innovative, world-leading technology company which has reached a critical stage in the development and testing of its MAGSPLIT product.

“Our second substantial co-investment will enable David and his team to take advantage of the global opportunities available in the hybrid electric vehicle market while at the same time continuing to build growth in its core renewable energy, aerospace and marine sectors.”

Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.

IP Group plc is a leading UK intellectual property commercialisation company, its portfolio comprises holdings in around 90 early stage to mature businesses across Healthcare, Biotech, Cleantech and Technology.