The Launceston-based Natural Fibre Company has secured a six-figure investment package involving Finance Cornwall, the South West Angel and Investor Network (SWAIN), and private shareholders.
Further investment comes from the South West Investment Group (SWIG) and a South West Regional Development Agency (SWRDA) grant.
Natural Fibre Company (NFC) spins and finishes a range of own-label and commissioned knitting and weaving yarns and offers a range of woven and knitted fabrics and garments.
Since it started trading in Cornwall two years ago the company has largely been involved with commission spinning, that is taking fleece from farmers, sheep breeders and the owners of small, specialist flocks and adding value to it by turning it into high quality wool. It also spins worsted yarn and works with mohair and alpaca fibres which are usually blended and used in the manufacture of natural-coloured knitwear.
NFC is managed by Sue Blacker, a sheep breeder and former investment analyst who has worked on economic development in Cornwall for 20 years. She purchased the NFC from the previous owners in 2005 and re-located from Lampeter, in Wales, to Cornwall with help from Objective 1, banking group HBOS and SWIG.
The investment package allows the company to install a specialist dyeing plant, upgrade some of its machinery and become a net buyer of wool. Additional capital has been provided by Sue and her husband Douglas Bence, a financial journalist.
“Most farmers get very little for their wool, most of which is used for carpet manufacture, and in fact shearing a sheep costs more than the fleece is worth,” said Ms Blacker.
“While they have been able to add value to their fleeces, many farmers have limited outlets for the finished yarn. This financial investment will allow us to add a specialist dyeing plant, further upgrade our machinery and become a net buyer of wool so that we can develop our own markets.”
Business Link’s Yvette Coles spotted NFC’s growth potential and need for additional investment and, after a financial review, referred the opportunity to Robert Seymour at Finance Cornwall. Des Smith from Business Link also provided a grant and mentoring service through the Evoke programme which supports young, high-growth businesses with potential to become market leaders.
Robert Seymour, Managing Director of Finance Cornwall Fund Managers, led the deal for Finance Cornwall and says: “We are pleased to invest in a specialist business that can only bring benefits to the Cornish economy. We look forward to playing a significant role in the company’s current and future success.”
Both NFC and Bruce Colley of SWAIN brought in a consortium of private investors which includes Mike Eccleshall, Martin Murphy and Jim Marshall, who joins the NFC board as non-executive finance director.
Bruce Colley, SWAIN investment director, said: “This deal represents the best of both worlds with a good mix of structured investment from Finance Cornwall alongside business ‘angels’ who bring both investment and experience. Sue’s tenacity and determination in securing investment convinced the ‘angels’ that she would make the Natural Fibre Company a success.”
ENDS
Dated 18/04/08
Notes to Editors
Finance Cornwall is a £20m venture investment fund targeting small and medium sized enterprises in this region with a range of equity, mezzanine and debt capital. Finance Cornwall can lend or invest from £20,000 to £1 million per business and, to date, has invested £8.5 million in over 100 businesses. It is part funded by the EU through the Objective One Programme for Cornwall and the Isles of Scilly.
Finance Cornwall’s funds are administered by Finance Cornwall Fund Managers Limited; an investment company authorised and regulated by the Financial Services Authority registered in England and Wales, number 05010380, registered address 14 High Cross, Truro, Cornwall, TR1 2AJ.
For further information visit: www.financecornwall.co.uk
Contact - PR for Finance Cornwall:
Samantha McKay, PR Manager, Formedia. Telephone: 01752 762120 / Email: samantha@formedia.co.uk.
SWAIN - For further information about SWAIN visit: www.swain.org.uk.
Business Link Service
Business Link is a Government funded service to help people start, run and grow businesses. The service provides free information, advice and support through a combination of a local enquiry service and an extensive regional website www.businesslinksw.co.uk. It links businesses to local and national specialists, and business-support services. Over the last three years the service has supported nearly 20,000 people thinking of starting a business and 90,000 people running businesses. In Cornwall and the Isles of Scilly, Devon and Somerset the Business Link service is delivered by Peninsula Enterprise. In Cornwall the service has received Objective One investment (European Regional Development Fund and EAGGF) to help companies improve performance and grow.
Peninsula Enterprise
Peninsula Enterprise is the organisation appointed by the South West of England Regional Development Agency to provide a range of support services for businesses in Cornwall and the Isles of Scilly, Devon and Somerset. These services include: Business Link, Train to Gain, South West Rural Enterprise Gateway and UK Trade and Investment (UKTI). Peninsula Enterprise is a business unit within Serco Regional Services Ltd. Serco Regional Services is a limited company within Serco Group Plc responsible for handling public sector and grant funded programmes.
For more information visit www.peninsula-enterprise.co.uk |
