A Co Londonderry engineering firm says it will secure over 100 jobs in 2013 and create additional jobs in the next four years to respond to growing demand for its services, thanks to a £500,000 loan from the £50m Growth Loan Fund. Maydown Precision Engineering Ltd is among the first of 18 companies to have already secured approval for finance from the Fund, which launched only in June last year and commenced its investment period from September.
Finance for the £50M Growth Loan Fund – which provides mezzanine finance to established Northern Ireland SMEs seeking to access growth finance – has been provided by Invest Northern Ireland and private investor, Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC).
Established in 1985, Maydown Precision Engineering is now one of the largest subcontract engineering companies in Northern Ireland, manufacturing machine components and small sub-assemblies predominantly for the aerospace industry throughout the UK, Europe, US and Asia.
The company is supplying key components to Bombardier, Airbus and Boeing aircraft programmes.
The firm currently employs around 100 people at its site in Maydown and says that the loan from the Fund will help underpin these jobs as it responds to recent business wins and a steady growth in demand for its services.
“Alongside new business wins such as the recent securing of a significant contract on the Bombardier C-Series, we are seeing a general steady increase in demand for our services – not just within the UK, but throughout Europe and US,” said Sean Phelan, managing director of Maydown Precision Engineering.
“While this is very encouraging for the firm, it does take our working capital requirements to a new level and this is where the Growth Loan Fund comes in. The £500,000 loan will not only help fund these increased working capital requirements, but will enable us to help secure all jobs at the firm and further increase our workforce over the next four years. The investment will also assist with ongoing training of new and existing employees.”
Invest Northern Ireland Chief Executive Alastair Hamilton visited the company recently to hear of their plans on securing the loan. He said: “Helping businesses to grow and develop during these challenging times is a key focus of Invest NI’s support. It is encouraging to see a business like Maydown benefit from our Access to Finance scheme which has been specifically developed to bridge a gap in funding available to businesses. To hear firsthand the difference this funding will make to Maydown, enabling it to grow its business and employ more people, is positive news, not just for the company but also for the local community. I look forward to hearing of its continued growth and success in the months and years to come.”
A Belfast-based team of specialist advisors, WhiteRock Capital Partners LLP, has been established to respond to enquiries to the Fund by the consortium of three partners – Braveheart Ventures Limited; NEL Fund Managers and Clarendon Fund Managers, all of which are authorised and regulated by the FSA.
Paul Millar, Chief Investment Officer of WhiteRock Capital Partners LLP said: “2013 is a big year for the Derry region with the UK City of Culture 2013 and this good news on the jobs front – supported by the £50m Growth Loan Fund – from Maydown Precision Engineering will be a further boost to the region. “This loan of £500,000 is the largest we have approved to date and Maydown is an excellent example of the type of firm the Growth Loan Fund is keen to support – demonstrating very strong growth potential and a thriving export strategy, underpinned by a commitment to R&D and innovation.”
Maydown Precision Engineering was advised by Corporate Finance Advisors, Horwood Neill Holmes. Partner Wayne Horwood stated: “The aerospace and defence sector in NI continues to be a key area for sustainable growth in NI. It is encouraging to see long established local companies with well-established management teams benefit from global export opportunities. Funding packages such as those offered in this case from WhiteRock Capital Partners and First Trust are of paramount importance to enable growth-orientated companies achieve their medium to long-term goals.”
Companies seeking funding from the Growth Loan Fund must be based in Northern Ireland, demonstrating growth potential and generally be in the manufacturing, engineering or tradable services sectors. Loans will be typically unsecured and personal guarantees will not be sought. The loans provided are expected to be complementary to existing sources of finance, including banks, trade finance sources and equity investors. Loans are provided on a fully commercial basis, with monthly loan repayments required over typically a five- year term.