2015 Finance in the South West Segment 3 - Case Study, Business Support and Closing remarks
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2015 Finance in the South West Segment 3 - Case Study, Business Support and Closing remarks
- 1. Finance in the South West 2015 An SME perspective, Business support and closing address… Sharon Austen Partner
- 2. www.francisclark.co.uk Structure of morning • Background, Debt and Investment ready (8.30am to 9.50am) • Key note speaker • LEP and SME • Debt and Investment ready (part 1) • Equity, Grants and Investment ready (part 2) (10.10am to 11.25am) • An SME perspective, business support and closing address (11.45am to 1pm) • Q&A one to one / Networking (1pm to 2pm)
- 3. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Finance in the South West Case Study – JMC Group Hollie Crook – Head of HR & Payroll
- 4. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER
- 5. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Who do we support? 95% of our clients are supported on a sole supplier basis, including the following organisations;
- 6. JMC – A Global Presence Europe - Austria, Bulgaria, Denmark , Estonia, Germany, Greece, Holland, Hungary, Italy, Lithuania, Malta, Republic of Ireland Africa – Botswana, Kenya Asia – Australia, China, Indonesia, Philippines, Taiwan South America – Peru, Bolivia North America - Canada UK Offices Liverpool Cambridge BasingstokeExeter & HQ Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Non-UK Offices; Malta Budapest Puerto Rico (Opening 2015)
- 7. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER The Journey so Far • Turnover • Contractor Numbers – Av 50 per wk in 2008, Av 1000 per wk in 2015 • Total Employees – 4 in 2008, 45 in 2015 • ISO 9001 – Supported growth in Europe 0 10 20 30 40 50 60 70 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 (exp)
- 8. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Funding & Business Support • Invoice Discounting – Main source of funding • Francis Clark – Advice on funding, guidance and support with expansion and advice on business with non UK companies • Skills Shortage - Tier 2 Sponsorship • Apprenticeships/Transition Course • Paint Hangar – Support only in Enterprise Zones, facilities not readily available elsewhere in UK
- 9. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Reflection • Sufficient insurance for customer debts, to ensure limited disruption to cash flow if payment terms are not met • Funding Limits – Growth quicker than expected • Permanent Recruitment – Expanding range of services to reduce risk
- 10. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER The Future • Expansion – Asia, Middle East, US & Caribbean
- 11. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER The Future • Local Community – Apprenticeship & Exeter City FC • Continue 100% customer retention • Achieve CAA accreditation • Opening of Paint Hangar
- 12. Building partnerships through creative solutions EUROPE’S LEADING AVIATION SERVICE PROVIDER Thank you
- 13. Introduction to Growth Accelerator, Access to Finance & the Business Growth Service For: Francis Clark – Finance in The South West Date: February 25th 2015 Region: South West
- 14. Growth Accelerator, Manufacturing Advisory Service (MAS), Intellectual Property Audits and Design Mentoring have integrated to become the Business Growth Service. The service provides tailored business support to small and medium sized firms with ambition and potential to grow. Throughout their journey, participants will have a single point of contact with the Business Growth Service with export support being provided by UKTI and UKEF. The service is closely linked to InnovateUK and the British Business Bank. What is the Business Growth Service? Business Growth Service
- 15. The Business Growth Service Mission Our vision We are the trusted growth partner for businesses with growth potential. We work with them to identify and overcome barriers and act in their best interests, bringing identifiable and quantifiable value to each stage of their growth journey. We are the place to go to grow. Our mission To deliver the right support at the right time and help small and medium sized firms to reach their growth potential.
- 16. Growth Accelerator – Access to Finance • Growth Accelerator has 3 main parts – Business Development & Coaching – Growth Through Innovation – Access to Finance • Coaching • Masterclasses • Government backed and makes a financial contribution
- 17. Growth Accelerator - Access to Finance • How to improve your company’s readiness for investment or funding • Gain an understanding of who to contact about sources of potential finance • Build a strong management team with match funding for Leadership and Management training How your business will benefit
- 18. Growth Accelerator - Access to Finance • Learn from top specialists about raising finance • Access to investors and legal specialists • Through peer-to-peer learning benefit from sharing ideas and experiences with other delegates • Build knowledge & expertise and get more from your one-to-one coaching sessions How the Masterclasses will help you
- 19. Growth Accelerator – Access to Finance • Understanding Finance – Gain a better understanding of the advantages and disadvantages of different types of external finance • Preparing for Finance – Prepare your business plan and craft a strong ‘pitch’ to increase chances of success in accessing finance • Closing the Deal: Legals & Valuation – Help and guidance on how to proceed when you get an offer for finance What Masterclasses are available?
- 20. Growth Accelerator - Access to Finance • Bank won't support with any funding requirements • Want an investor who will bring in expertise and contacts • Haven't had to raise finance before - what are the options? • Bank wants to factor – is it the best option?” Many reasons for seeking funding
- 21. Access to Finance – Product & Service Eligibility • SMEs only - fewer than 250 employees and less than £40m turnover • Ambition to double in turnover, profits or employees in 3 years • Registered in England • Independently owned • Any sector
- 22. Access to Finance – Designed for you 1. This is a Selective Service - for the suitable and eligible 2. It is specific, designed to address your business challenges 3. It is the UK Government Investing in High Growth Businesses, delivered by a consortium of private sector partners 4. It uses commercial, experienced coaches (800 across the country – 200 specialist Access to Finance) 5. The service is focused on Results
- 23. Access to Finance – So far 1. Growth Accelerator worked with over 11,000 high growth businesses across England 2. Raised finance for a wide range of companies in the South-West – ranging from: traditional debt, invoice finance, asset backed RDF, matched funded TSB, angel (traditional and crowd), funding circle and VC
- 25. For more information: Rob Edwards Growth Manager/Access to Finance South West r.edwards@oxin.co.uk 07841 920902
- 26. Access all Areas: Tools to help your business innovate and grow The Growth Acceleration & Investment Network 25th February 2015
- 27. SME engagement - the University challenge “Universities have an extraordinary potential to enhance economic growth…from local SME support and supply chain creation to primary technology leadership and breakthrough invention” “Universities should assume an explicit responsibility for facilitating economic Growth”
- 28. Plymouth University - Our mission – - build and sustain connections with local, national and international partners to enrich our academic experience. – - raise aspiration amongst groups under- represented in higher education – - provide opportunities for our students, staff and the communities we serve through economic development, social inclusion, community outreach and strategic partnerships.
- 30. Creating innovation environments GAIN Innovation Science Park Innovation Centres Formation Zones
- 31. Driving Innovation through talent GAIN Talent Employability gateway KTPs Internships
- 33. Funding Innovation Grant Programmes Innovation vouchers GAIN Finance Grant programmes Crowdfunding Investor readiness
- 34. Phantom Sports Boats – A Collaborative Case Study Pre-incorporation Plymouth • IP guidance • Organisational Needs Analysis Brokerage Falmouth & Bristol • Falmouth Marine School •Bristol Composite Gateway (ERDF) • Demonstrator produced Incorporation Plymouth • New enterprise created • IP agreement with FMS • New product
- 35. Finding solutions Business Engagement Service A free phone / e-mail based light touch diagnostic, signposting and referral service for any business 0800 073 2020 www.gaininbusiness.com
- 37. www.british-business-bank.co.uk @britishbbank British Business Bank Finance in the South West Programme 25 February Andrew van der Lem
- 40. www.british-business-bank.co.uk @britishbbank Focused funding in the market Start-up Scale-up Stay StrongSegment Need Mentoring and funds to “be your own boss” Funds for high growth potential More funding options and choice of provider Start-up loans Angel Co-Fund Investment Programme • Focus on • Outcomes not volume • Economic and social return • New funding structure • Multiple delivery partners to be close to the market • Startuploans.co.uk • £100m funding • Supports syndicates of angel investors • Angelco.co.uk Venture Capital • 17 funds in the market • British-business- bank.co.uk Growth Loans • Clear market gap shown • RfP for pilot to be announced around budget • £250m of awards to new platforms, debt funds and asset based lenders Enable • Capital focused guarantees to grow small bank lending • Capital markets funding for smaller asset based lenders Enterprise Finance Guarantee • Guarantees to extend banks’ risk appetite where security is weak
- 41. www.british-business-bank.co.uk @britishbbank The business finance guide The Business Finance Guide shows the journey from start-up to growth. Devised for businesses and advisers by the British Business Bank and the ICAEW Corporate Finance Faculty Supported by a further 17 major professional, membership and representative organisations.
- 46. www.francisclark.co.uk Declan Curry Finance in the South West 2015
- 47. www.francisclark.co.uk Structure of morning • Background, Debt and Investment ready (8.30am to 9.50am) • Key note speaker • LEP and SME • Debt and Investment ready (part 1) • Equity, Grants and Investment ready (part 2) (10.10am to 11.25am) • An SME perspective, business support and closing address (11.45am to 1pm) • Q&A one to one / Networking (1pm to 2pm)
- 48. www.francisclark.co.uk Presenters: thank you …and many more
- 49. Finance in the South West 2015 Thank you and please network Sharon Austen Partner
- 50. www.francisclark.co.uk (c) copyright Francis Clark LLP, 2015 You shall not copy, make available, retransmit, reproduce, sell, disseminate, separate, licence, distribute, store electronically, publish, broadcast or otherwise circulate either within your business or for public or commercial purposes any of (or any part of) these materials and / or any services provided by Francis Clark LLP in any format whatsoever unless you have obtained prior written consent from Francis Clark LLP to do so and entered into a licence. To the maximum extent permitted by applicable law Francis Clark LLP excludes all representations, warranties and conditions (including, without limitation, the conditions implied by law) in respect of these materials and /or any services provided by Francis Clark LLP. These materials and /or any services provided by Francis Clark LLP are designed solely for the benefit of delegates of Francis Clark LLP. The content of these materials and / or any services provided by Francis Clark LLP does not constitute advice and whilst Francis Clark LLP endeavours to ensure that the materials and / or any services provided by Francis Clark LLP are correct, we do not warrant the completeness or accuracy of the materials and /or any services provided by Francis Clark LLP; nor do we commit to ensuring that these materials and / or any services provided by Francis Clark LLP are up-to-date or error or omission-free. Where indicated, these materials are subject to Crown copyright protection. Re-use of any such Crown copyright-protected material is subject to current law and related regulations on the re-use of Crown copyright extracts in England and Wales. These materials and / or any services provided by Francis Clark LLP are subject to our terms and conditions of business as amended from time to time, a copy of which is available on request. Our liability is limited and to the maximum extent permitted under applicable law Francis Clark LLP will not be liable for any direct, indirect or consequential loss or damage arising in connection with these materials and / or any services provided by Francis Clark LLP, whether arising in tort, contract, or otherwise, including, without limitation, any loss of profit, contracts, business, goodwill, data, income or revenue. Please note however, that our liability for fraud, for death or personal injury caused by our negligence, or for any other liability is not excluded or limited. Disclaimer & copyright
Editor's Notes
- Thank you opportunity to speak Introduce – Working for JMC now for 5 years Case study to cover how the business support and funding we have received has supported our growth Why speaking at seminar
- Overview of JMC group and introduction to all the group companies JMC Recruitment – Started in 2008 and JMC Recruitment now largest supplier of labour to Aviation Maintenance and Repair Organisations in Europe Specialises in supply of contract Licensed Engineers, Mechanics and SMW JMC Engineering – Provider in maintenance support for Airlines and Maintenance Organisations as well as working with Somerset College on apprenticeship scheme for aircraft mechanics. September 2014 first intake APS – Recently sourced a facility to set up a paint hangar in Malta. Will touch on choice of location as Malta when I cover funding and support ATS – Supply specialist trained engineers for 24/7 quick response for aircraft fuel tank leaks and repairs
- 95% on sole supplier basis 100% customer retention record Largest clients Non-aviaition
- Global footprint over the last 7 years – range of continents and locations Offices – Head office in Exeter
- Substantial growth 2008 recession year Provided cost saving solutions which airlines and maintenance organisations need – flexible work force (peaks and troughs), fixed price work packages – control budgets
- Started with Invoice Factoring – Discounting allowed us greater control of our facility and ability to manage own credit control. Did find that factoring caused a number of issues as affected customer relationship Currently reviewing facility in light of projected increase in turnover Allowed us to remain operation flexibility while dealing in an industry that can be volatile at times and is easily affected by external factors – fuel costs, consumer confidence in flying and environmental disasters Lufthansa - sole supplier – cash flow - large increase in contractor numbers Francis Clark Areas where funding/support not been so readily available Current skills shortage – 6 years ago gained employer sponsorship from Home Office Apprenticeships – 10 years ago airforce and major airlines stopped apprenticeships Enterprise zones not in operational routes, Maltese government have given us support and funding with the project
- Aviation is volatile market and you get little to no notice on companies going bust 12 months ago one of larger customers did fail to meet payment terms which did cause us some cash flow problems Growth has been quicker than expected, been on the back foot with funding limits which has caused cash flow issues at times Expanding and diversifying into new supply of new products and services to reduce risk to company
- Aviation Industry 6 years – Global fleet increase by around 1000 aircraft per year Asia and Middle East large increases Caribbean- Puerto Rico Office
- Continue work in local community – Apprenticeship scheme another intake in Sep 2015 and continuing sponsorship of Exeter City FC Growth but also maintaining customer retention CAA Accreditation to grow maintenance support services Opening of Paint Hangar in Malta – Allow us to offer customer a full range of services then just recruitment
- Hello everybody, my name is Rob Edwards and I am the Business Growth Manager specialising in access to finance for Growth Accelerator which is a part of the Business Growth Service and I cover the South West region; which stretches from Gloucester down to the southern most tip of Cornwall. And my job is to meet with those business owners who feel that access to finance is the single greatest barrier to growth in their business and on behalf of the Business Growth Service and Growth Accelerator I will determine in discussion with an owner whether this is truly the case and as long as key criteria are met, accept that business into the Access to Finance programme. Successful businesses that wish to grow may find their ambitions hampered by a lack of funding and their owners can be unaware of the range of funding and finance options available to them – from commercial loans to private equity and everything in between. Growth accelerator’s access to finance service which is now part of the business growth service can show you ways to source and pitch for investment, helping your business expand or move into new markets or explore new products and services. So if your finding it difficult to get the right funding for your growth or you want to know more about meeting investor requirements, then Access to Finance from Growth Accelerator is for you. For a bit of context let’s just look at how this all fits together:
- On 5 December last year, George Osborne announced the launch of the Business Growth Service. The Service brings together MAS, GrowthAccelerator, Intellectual Audits from the IPO and a Design Mentoring Service from the Design Council into one wider offer to provide tailored business support to small and medium sized firms with ambition and potential to grow. The Government asked for this to happen to make access to business growth support even easier and more customer-centric. UKTI (UK Trade and Investment) and UKEF (UK Export Finance) will work with the Business Growth Service to provide Export support to customers where it is needed and it is closely linked with Innovate UK and the British Business Bank. Vision, mission - slide
- The Business Growth Service brand is not just a new look, but will mean new behaviours as well as new ways of working. The vision and mission set out how we want our client businesses and the wider market to see the Service. The Government want it to be simple and easy for business to get the right support at the right time. By integrating and aligning government-backed business services we can provide a single entry into whatever support suits the business best and improve the customer experience. What is the growth
- The Growth Accelerator has three main components in its delivery of the business growth service and they are Business Development & Coaching, Growth Through Innovation and Access to finance. Access to Finance, like each of these services includes two areas of support being one-to-one coaching sessions and masterclasses designed to enable and support you as you seek external funding. It is worth repeating that this service is Government backed and so the government makes a sizeable contribution to the one-off cost of the service. The cost is scalable according to business size and we can deal with this detail if we meet and you think that Access to Finance is the sort of thing that you might need. So, how will your business benefit? slide
- OK, now its worth asking the question about how your business will benefit from the access to finance service? It will benefit in three key areas: first engaging with this service will help you improve your company’s readiness for the rigours of seeking external investment or funding; second you will gain an understanding of who to contact when your looking for sources of potential finance; and thirdly there is the added opportunity to build a strong management team by taking advantage of match funding for Leadership and Management training. A strong management team can be essential when seeking particular forms of investment or funding and is certainly important when building a business for exit or when planning and exit. How will the masterclasses help? - slide
- There is a lot to be gained by taking advantage of the masterclasses on offer. It is often the case that a business owner will be an expert in regard to their business but understanding the ins and outs of raising finance or investment can seem a bit of a dark art. The masterclasses help inform you about this process; you will learn from specialists about raising finance, you will get access to investors and legal experts, ask the questions you want to ask and get answers you need. By engaging with peers through workshops you will learn from their experiences and ideas and most crucially you will ecome sufficiently informed that you can get the absolute best from your one-to-one sessions with your access to finance coach. So what masterclasses are available? slide
- There are three masterclasses, designed to enable you to become informed and to control the process. The first is Understanding Finance which will provide you with an understanding of the various advantaged and disadvantages that go with different types of available finance. Second, Preparing for Finance will help you be sure that your business plan is robust and that your ‘pitch’ is ready to impress so that you increase your chances of a successful outcome And third Closing the Deal; now you’ve got your offer of finance, you’ll know what to do next. We should ask, why you might need funding? slide
- There are many reasons that a business will want to explore Access to Finance. It might be that a business’ bank has refused to support a funding requirement or that an owner will want to find an investor who can bring not only the needed finance but also expertise or industry contacts. You may want to simply explore options and become informed for the future or an owner may be feeling pressured to commit to something like “factoring” but wants to know if it’s the best option. Whichever or whatever the reason Access to finance from the growth accelerator has the means to help. Now, who is this service for? slide
- Access to Finance like all Growth Accelerator services is available to SMEs only. And an SME is defined as being a company which employs fewer than 250 people and less than £40m in annual turnover. A business engaging with the service must have high growth ambitions and desire to double its turnover, profitability or headcount within three years; it must be registered in England, be independently owned but can operate in any industry sector. How has it been designed? slide
- Access to Finance has been designed for you. It is highly selective and the strict suitability and eligibility criteria apply and it is designed to meet the very specific finance challenges faced by your business. It represents the UK government directly investing in the South West’s high growth businesses and utilises commercial & highly experienced coaches, 200 of which are specialist Access to Finance coaches and many of these have backgrounds as finance directors, accountants, lenders and investors. Finally we at Growth Accelerator are judged as a service on our results by government and that’s OK because our results have been so good that we have just been awarded a new contract by government to continue our good work.
- To sum up, at Growth Accelerator we have worked with over 11,000 high growth businesses across England and in the South West have enabled a wide range of businesses to raise their much needed finance, including traditional debt, invoice financing, matched funding, Angel investment and venture capital. End. slide
- I pulled this from the Sunday times recently and is a perfect case in point. John owns a small company that designs and manufactures a wireless Jack for electric guitars, things have gone well and he wants to expand his business. He wants to export, build dealer networks and increase manufacture, headcount and supply. He’s a case study in the paper because he’s confused about what sort of finance he might need to fund his growth ambitions and how he should go about it; this is exactly what the Business Growth Service, Growth Accelerator and the Access to Finance service was created for and we would certainly be able to help John achieve his ambitions. Except that he’s based in Edinburgh!
- Thank you. If you wish to know more then please grab a hold of me today and ask me any questions that you like.
- Plymouth University’s commitment to business growth and the competitiveness of our region is further demonstrated by the innovation and incubation environments we operate and that provide a supportive, collaborative and stimulating space for people with business ideas or innovative enterprises that want to grow. Our three Innovation Centres in Cornwall have had remarkable success, and have been ranked as amongst the best in the world, winning UK Business Incubation (UKBI) status this year, and home to 139 businesses in total, employing around 480 people. These businesses have seen average growth rates of a staggering 40%, well in excess of regional and even national figures. Similarly the University run Formation Zone pre-incubation spaces were recognised with an ‘Achievement in Business Incubation’ award by UKBI for 2013. The award is designed to recognise those environments that have introduced innovative services as well as demonstrating the application of best practice and ultimately impacting on their local and regional economies. The award follows Formation Zone’s accolade in July 2013 of UKBI’s Inspire Accreditation for Best Practice in Business Incubation. NEXT SLIDE…
- Ice cream – distribution of air bubbles, fat globules and ice crystals Hummus Cheese
- First RGF project to be launched 100 businesses creating over 450 jobs RGF success stories locally: Alpha Initiatives – Plymouth-based small company – developed and sell Vocab Express, an online vocabulary learning application used extensively by schools and colleges and designed to motivate students into independent learning. RGF funding (£43,000) enabled Alpha Initiatives to more than double their staff numbers, adding three new full-time permanent positions, and purchase large volumes of volumes of translated materials in a range of languages – the raw material necessary to drive the application. Latest fund closes in a week or so – get your EOI iN!
- First RGF project to be launched 100 businesses creating over 450 jobs RGF success stories locally: Alpha Initiatives – Plymouth-based small company – developed and sell Vocab Express, an online vocabulary learning application used extensively by schools and colleges and designed to motivate students into independent learning. RGF funding (£43,000) enabled Alpha Initiatives to more than double their staff numbers, adding three new full-time permanent positions, and purchase large volumes of volumes of translated materials in a range of languages – the raw material necessary to drive the application. Latest fund closes in a week or so – get your EOI iN!
- Die BBB hat mittlerweile ca. 100 Mitarbeiter; sie benutzt Partner vom Privatsektor fuer (fast) alle Programme – von grossen und kleinen Banken zu VC funds, Business Angels, Fonds, neueren Plattform fuer peer to peer lending oder invoice finance; und auch gemeinnuetzige Organisationen fuer Start Up Finanzierung.
- Als Zielsetzung fuer die ersten Jahr will die BBB Einen Bestand von £10bn an Krediten oder Investitionen durch ihre Programme finanzieren Den Markt diversifizieren – ca. 70% der jetzten Programme geht durch Partner ausserhalb der 4 groessten Bank Sichergehen, dass KMUs sich informieren koennen ueber Finanzoptionen Wir haben unsere Zielgruppen in Start Ups und Wachstumsfirmen unterteilt; und wollen auch anderen KMUs die nicht die richtige Finanzierung bekommen, helfen.