Case Studies
Smith Craven assists with second SYIF loan to support
continued expansion at an innovative field marketing business.
Doncaster-based Intelligent Marketing Solutions
seeking larger premises. South Yorkshire Investment Fund has provided a second
loan to help the innovative and award-winning Doncaster-based field marketing
business fulfil its growth plans.
Intelligent Marketing Solutions Ltd (IMS) is using the £45,000 loan
to support the cost of relocating to larger offices in the Doncaster area.
Following the move, IMS, which provides a range of field marketing services
to leading retailers and consumer companies, is planning to recruit five more
staff for its sales and support teams as a result of increased business.
Founded in 2000, IMS provide traditional field marketing activities including
mystery shopping, merchandising, stock auditing, and point of sale placement.
Clients include blue chip companies such as Woolworth's, Orange, Nationwide
Building Society, Johnson and Johnson, Northern Foods, T Mobile, Kraft Foods,
Porsche and The Guardian.
IMS was the first field marketing company to build its operation around an
e-business solution and in 2003 won the national innovation award. This technology
enables IMS to provide clients with a more efficient service, including live
round the clock reporting of their campaign results.
Laura Holden, Sales and Marketing Director, who is one of the company’s
founders, said: "We have pioneered an e-based approach to our business
that has enabled us to develop our reputation for innovation and reliability
which has in turn enabled us to grow.
"SYIF helped us in the early stages with a £25,000 loan which we
used for marketing purposes. We have also had the services of a SYIF business
mentor, Kelvin Fitton from accountancy firm Smith Craven who provides invaluable
advice that helps us make key business decisions. SYIF has now supported us
again with a second loan that we will put towards the cost of moving to larger
premises as we gear up for future growth."
Allan Wood, Investment Manager, said "It has been gratifying to see the
continued progress made by IMS through its innovative approach to its business
sector. Their experience has shown the value, not only of the funding available
from SYIF, but also of the mentoring service which is designed to support
companies with advice and guidance as they develop and grow."
An intermediaries view
South Yorkshire Investment Fund (SYIF) works closely with
a wide range of accountants and business advisers, one of them is Smith Craven
Chartered Accountants.
Smith Craven is a well established firm within South Yorkshire. Its base is
in Doncaster with offices also in Sheffield and Chesterfield. The firm
and its partners have worked closely with SYIF since its inception, which
has resulted in a number of the firms clients receiving investment by the
Fund. Smith Craven’s Sheffield office has recently been strengthened
by the appointment of Howard Mee FCA, who has been brought on board to develop
the city client base as well as to bring Corporate Finance expertise to the
firm.
Howard has also been involved with SYIF on a regular basis. He said: “There
are many instances where businesses need to consider their funding requirements,
such cases may include looking at an acquisition or restructuring the company
ownership with an MBO or MBI.
“It may be to provide finance for a capital project or simply enabling
the business to develop its growth with additional working capital. In all
cases I would recommend that the business would consider the products that
are being offered by SYIF with a view to them being part of a larger package
of funding.
“When working with our clients on such projects it is essential to involve
SYIF at an early stage so that we can ensure the eligibility of the company
to receive SYIF funding. Once the Investments Managers have confirmed the
Fund’s interest in the project it will then be necessary to build the
complete business case. As a result of this early introduction, SYIF may be
able to contribute towards the fees that are to be incurred in the business
planning stage.”
SYIF can offer a wide range of investment packages, from business loans to
equity linked deals and Seedcorn finance. Business Loans are typically
unsecured ranging from £15,000 to £150,000, with loans over £50k
only being applicable to profitable established businesses. Joint equity linked
investment packages are available as either straight equity investments or
mezzanine loans which means that SYIF can invest up to £2.5 million.
There are also several other products that the Fund can offer, for example,
as part of the Money with Management Scheme the Fund can assist the company
by reducing the cost of lending with an interest rebate or it can help with
the cost of certain key external services from which the company will benefit.
Smith Craven has completed several deals where funds have been introduced
by SYIF ranging from £15,000 to £75,000. The companies have received
an interest rebate through the Money with Management scheme which have reduced
the cost of lending considerably to an effective annual interest rate of 3.6%.
The level of interest rebate does vary according to the level of debt taken
by the company.
Howard added: “Clearly SYIF are well placed to help both emerging and
established businesses and they have always shown support to Smith Craven
with our intent to help businesses grow in the region. It is certainly refreshing
to know that when considering the investment needs of a client, SYIF is both
willing and capable of making the difference.”
If you would like to find out more about how Smith Craven can help you with
your business, then please call or e-mail Howard Mee on 0114 2723838 or at
howard.mee@smithcraven.co.uk.
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