“NEL supported us at a time when other sources of funding weren’t readily available, and the capital we received enabled us to secure new contracts that would previously have been out of our reach.
Growth Fund Support Helps Wheels of Commerce Turn for Rotational Engineering
A specialist North East engineering firm has recognised the positive impact that outside investment has had on its recent performance and future prospects.
Rotational Engineering designs and manufactures a range of rotational steel moulds that are predominantly used in the plastics market, and works with clients in the UK, Europe and North America on developing a range of bespoke items.
In 2010, the Wallsend-based firm worked with regional fund management firm NEL Fund Managers to secure a £75,000 investment from the Finance For Business North East Growth Fund that NEL runs to help it take advantage of a range of new commercial opportunities and invest in new team training resources.
And having completed the investment period, Rotational Engineering is now looking to build on the progress it has made.
As well as providing the working capital required to fulfil a number of new contracts, the investment also enabled an existing apprentice to complete their training with the firm before taking on a full-time, permanent role.
A further apprentice has now been taken on, along with two other new recruits, and another member of the team has begun work on a Masters degree in Business Administration.
Set up in 1994 by husband and wife team Neil and Pat Davidson, Rotational Engineering initially manufactured the steel moulds used to make traffic cones, but quickly added many other bespoke items to its range and operates to ISO 9002 quality management standards.
Company secretary Pat Davidson explains “NEL’s involvement not only provided the financial investment we were looking for, but also gave us the impetus to review our business processes and identify how we could plan and operate our work even more effectively.
“We have a highly skilled and experienced workforce, and we’re now in a strong position to build on the progress we’ve made over the last five years, both in domestic and overseas markets.”
Lindsey Grieves, portfolio executive at NEL Fund Managers, adds: “We invest in quality management teams and the team at Rotational Engineering fit this bill perfectly.
“Their success is a clear example of the positive impact that investment capital can have on ambitious companies’ prospects, capacity and commercial performance, and it’s great for us to have been able to contribute to another North East success story.”
Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.
Managed by North East Finance, it will see £142m of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund 2007-13.
NEL is looking to make around 130 investments from the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.
For more information about NEL’s investment criteria, visit www.nel.co.uk or contact the investment team on 0845 111 1850.
The ERDF 2007-13 programme is bringing over £300m into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.
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For further information, please contact Julian Christopher at Footprint Public Relations on 07891 005034 or via julianchristopher@btinternet.