First Northumberland company gets Northern Powerhouse Investment Fund backing

Finance

Low Carbon Materials lands £3m investment from venture capitalists

Construction decarbonisation innovator Low Carbon Materials (LCM) has secured a £3m investment it says will fuel rapid expansion. The Seaham-based creator of carbon negative aggregates used in building has closed its latest funding round led by Ada Ventures, and featuring Green Angel Ventures, Northstar Ventures, an Innovate UK grant and sponsorship and skills support from Deloitte. The former Earthshot Prize finalist, which employs about 18 people, said the funding was a crucial step for its growth. LCM's flagship OSTO product is a lightweight aggregate - the essential crushed stone, sand, and gravel components that give concrete and asphalt their strength and stability. It replaces traditional materials and reduces the carbon footprint of construction. Read more: Newcastle tech firm Opencast sees revenues close in on £50m mark Go here for more climate agenda news The firm was created by a team of three scientists behind – Dr Natasha Boulding, Dr Phil Buckley and Scott Bush – who came together to form the company in 2019 after meeting at Durham University while studying for PhDs in material science. In 2022 LCM became a finalist for the prestigious Earthshot Prize, orchestrated by Prince William, in a move that underlined its work towards tackling climate change through lower carbon emissions. Ms Boulding, CEO of Low Carbon Materials, said: "As essential building blocks for our cities and transportation networks, concrete and asphalt require a greener approach to production to minimise their environmental impact. We're seeing tremendous interest and opportunity, both in the UK and abroad. This funding is a crucial step to support our rapid growth and in preparing us for future funding to enable us to meet the ever-growing global demand for our decarbonisation solutions. Our technologies offer a simple and scalable way to transform the concrete and asphalt industry, and we're excited to be backed by these incredible organisations." Matt Penneycard, co-founding partner at Ada Ventures, said: "At Ada, we invest in people and ideas that have the potential to change the world. LCM is on track to do exactly this. "Concrete in the built environment accounts for 8% of global carbon emissions and 25 million tons of asphalt are laid in the UK every year - there is a huge opportunity to develop and introduce greener alternatives to market, and yet it's a space few are innovating in. LCM offers large construction businesses a simple and scalable way to reduce their CO2 output, delivering these solutions in a scalable market-leading way. It's a privilege to partner with them as they continue their upward trajectory."

Finance

£300m investment vehicle for science and tech spinouts launches

A £300m investment vehicle to help university spinout companies in the South of England and Wales has been launched. SETsquared - a partnership between the universities of Bath, Bristol, Cardiff, Exeter, Southampton, and Surrey - and regional investment firm QantX are behind the initiative. The aim is to catalyse the creation and growth of science and technology firms addressing global challenges. Sir Richard Olver, chair of QantX, announced the details of the investment vehicle at Bristol City Hall on Friday (October 11) at the Regional Investment and Health & Life Sciences Summit. Science minister Lord Patrick Vallance, who was in attendance, said: “The UK is home to brilliant innovators, and this investment vehicle that brings together six universities with a private sector investment firm QantX will help turn great ideas into thriving companies that create high skilled jobs and exciting new products." SETsquared is widely recognised as one of the UK’s most successful innovation partnerships. Since 2002, its members have secured more than £5bn in investment and created over 15,000 jobs. Marty Reid, executive director of SETsquared, said: “Creating this new investment vehicle could be a vital step forward in addressing funding gaps we see today, and through a deep connection with our support ecosystem, could inspire a new generation of talent who will get technologies out of the lab and shape the industries of tomorrow." Richard Haycock, co-founder and chief executive of QantX, added: “We're witnessing a surge in university spin-outs led by brilliant founder entrepreneurs. By connecting these visionaries with risk capital and expertise in transformative fields like life sciences, sustainability, and deep tech, we're cultivating a thriving innovation ecosystem." The announcement comes just days before senior execs from some of the world's biggest firms prepare to gather in London for the government's Investment Summit. Ex-Google boss Eric Schmidt and Goldman Sachs chief executive David Solomon are among business leaders slated to attend. West of England's Labour metro mayor, who attended Sir Keir Starmer's first council of regions and nations in Scotland on Friday, will also be in attendance.

Finance

Alliance Pharma reports 'strong' performance after turbulent few months

Wiltshire healthcare firm Alliance Pharma has posted a rise in profits two months after making its chief operating officer redundant. The Chippenham-headquartered business reported underlying revenue of £84m for the six months ending June 30, 2024 - up from £81.4m over the same period in 2023. Profit before tax rose from £10.3m to £12.7m from the year before. The firm, which sells prescription and over-the-counter medicines, said demand for its scar treatment brand Kelo-Cote drove group revenues over the period. The company’s performance was assessed using so-called ‘alternative performance measures’ which are not defined under International Financial Reporting Standards (IFRS). The method is used by management to monitor ongoing business performance against shorter-term budgets and forecasts, and longer-term plans. Nick Sedgwick, chief executive of Alliance, said: "I am pleased by the performance we delivered in H1 24 as we continue to see the benefits of our investment in both marketing and innovation. Our free cash flow is expected to build strongly throughout the remainder of 2024, which we anticipate will enable us to reduce further our net debt and leverage by the end of the year.” Mr Sedgwick added: “I have also implemented a number of senior management changes to accelerate decision making and to bring the consumer closer to the heart of the business, and I see further opportunity to deliver efficiency gains and capability improvements over time.” News of the results follow tough few months for the company, which replaced its chief executive in May and delayed its results several times after problems with its audit. The business first delayed its results on April 5, on April 22 and then again on May 8. It said at the time its chief executive's departure was not linked to the issues with the audit.

Finance

Finance lender Atelier launches new Birmingham base

Specialist development finance lender Atelier has opened a new regional office in Birmingham's business district. Following the deployment of £150 million capital to the region, Atelier has launched the new space in 102 Colmore Row which is led by lending director Rav Kudhail. The London-based company said the new base would enable it to expand its provision of custom finance products to developers across the West and East Midlands and further afield towards Leeds and Manchester. It has already worked on several projects in the region including providing finance for the conversion of a grade-II listed building in Birmingham's Jewellery Quarter to create 32 apartments and a 196-studio student development near University of Warwick. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Mr Kudhail said: "I've been based in Birmingham for the last three years and I am proud of the relationships we have built up with developers, intermediaries and professional partners. "The fact we've delivered £150 million of lending in the region so far is evidence of our commitment to being the lender of choice to finance a range of asset classes across central England and the North." Chief executive Chris Gardner added: "The opening of our Birmingham office underscores our commitment to funding property development in the region.

Finance

Stanlow refinery owner EET Fuels seals $650m funding deals – as reports suggest Hynet cluster could get billions of pounds in Government backing

Energy giant and Stanlow refinery owner EET Fuels has agreed $650m in funding to support its decarbonisation strategy – as reports suggest the Government could today pledge billions to a green industry plan of which Stanlow is a key link. Essar Energy Transition (EET) Fuels, whose Cheshire refinery supplies 16% of all road transport fuels in the UK, says the three receivable financing and trade credit financing facilities it has agreed show the market is confident in its plans to slash emissions from Stanlow as it continues its push towards hydrogen. Meanwhile the Financial Times is reporting that on Friday the Government will pledge £22bn to support two carbon capture and storage schemes, including the HyNet project that links a cluster of industrial sites in the North West and North Wales. EET Fuels has secured a new receivable facility with ABN AMRO Bank for $150m, has extended and upsized its facility with banks HCOB and UMTB to $200m, and has secured a trade credit financing for $300m with “an international oil company”. The group says its Stanlow decarbonisation plan “is central to these new relationships”. The group is aiming to reduce emissions at Stanlow by 95% by the end of the decade by combining carbon capture technology with the use of “blue hydrogen” from natural gas. Stanlow is also at the heart of the HyNet low-carbon cluster, which aims to grow the low-carbon economy in the North West and North Wales. Satish Vasooja, chief financial officer at EET Fuels, said: “This is an excellent outcome for EET Fuels. Knowing our decarbonisation strategy has the backing of major financing partners, we can continue to develop and invest in our business with confidence.” Tarun Naruka, head of corporate and structured finance at EET Fuels, said: “These new facilities strengthen our balance sheet, adding flexibility to our financing arrangements and demonstrate that major financing partners are aligned to our core strategy, including cost optimisation and continued performance improvement.” The FT says the Government is planning to commit to carbon capture tech in the UK by supporting the HyNet cluster and the East Coast Cluster. Both projects will see emissions from industrial sites captured and stored under the seabed. Under Hynet, emissions from Stanlow and other industrial sites would be storied in depleted gas reservoirs below the Irish Sea. Other partners include Italian energy group ENI, which would operate the CO2 transportation and storage system.

Finance

Sir James Dyson says Labour 'killing off family businesses' with inheritance tax

Billionaire inventor Sir James Dyson has taken a swipe at the Government for “eviscerating” UK family businesses with the inheritance tax measures announced in last week’s Budget. The businessman, whose company employs thousands of people at its base in Malmesbury in Wiltshire, warned that small firms and start-ups will “suffer”, while private equity and public companies escape the taxation. Chancellor Rachel Reeves used her first Budget to make changes to inheritance tax, including reducing reliefs for agricultural and business property from April 2026 in a bid to raise more funds for the public sector. For assets over £1m, inheritance tax will apply with an effective rate of 20% – half the standard 40% rate. But the measure has faced a backlash from those across the agriculture sector who say the levy will affect farms being passed down from one generation to the next. Sir James, who, as well as founding technology firm Dyson, owns a commercial farming business, expressed his frustrations with the new Chancellor’s tax changes. He wrote in The Times: “Make no mistake, the very fabric of our economy is being ripped apart. No business can survive Reeves’s 20% tax grab. It will be the death of entrepreneurship.” He added: “Every business expects to pay tax, but for Labour to kill off homegrown family businesses is a tragedy. In particular, I have huge empathy for the small businesses and start-ups that will suffer.” Meanwhile, companies owned by overseas families, and private equity-owned and publicly-listed firms that are “about maximising short-term profit” will not pay the same taxes, he said. Sir James is a major landowner and his business, Dyson Farming, produces crops on 36,000 acres across the UK. The entrepreneur and his family have a fortune of about £20.8bn, according to the latest Sunday Times Rich List. Ms Reeves has defended the proposed reforms to inheritance tax by claiming it is not “affordable” to keep the current system.

Finance

Reusable mask maker that supplies NHS secures £1.6m

A Cornwall company that makes reusable surgical masks and gowns has secured £1.6m of funding. Revolution-Zero, which was founded during the Covid pandemic, received £1m from the South West Investment Fund via appointed fund manager FSE Group as well as investment from private angels. The injection of equity will help create 20 jobs at the Truro-based medical textiles firm, while supporting the growth of the business. Founder and chief executive Tom Dawson said: "We are thrilled to receive this South West Investment Fund investment via FSE, which will not only accelerate our growth but also further our mission to provide sustainable and effective medical textile solutions. "Our end-to-end service model has already shown significant potential in reducing single-use item dependency in healthcare settings and this funding will help us scale these solutions more rapidly." Founded in 2020, Revolution-Zero has a strong emphasis on environmental, social, and economic sustainability. Initially focused on reusable masks, the company has since expanded to include surgical textile solutions and decontamination/sterilisation units. The BCorp certified company secured accreditations required to supply the NHS in 2021 and has since experienced rapid growth, expanding to 23 staff and more than tripling turnover. With ambitious plans to achieve six operational medical textile processing units by 2026 - rising to 24 by 2028 - Revolution-Zero is aiming to become a £25m turnover business within the next three years. Anna Staevska, FSE investment manager, said: "Revolution-Zero's innovative approach to medical textiles is a game-changer for the healthcare industry. By addressing critical issues related to supply chain vulnerabilities and environmental impact, they are setting new standards for sustainability in the sector."

Finance

Channel 4 invites black British entrepreneurs to apply for TV ad scheme worth £150k

Channel 4 is offering four black-owned British companies the chance to secure television advertising worth £150,000. The initiative - Black in Business - gives firms the chance to create their own commercial for the channel, plus six months of marketing and business mentorship. The scheme, which is being run in partnership with Lloyds, first launched last year. It is open to companies that generated a turnover of at least £250,000 in their last financial year and have not invested in TV advertising before. At least 50% of the founding team must also identify as black. Black in Business was inspired by research led by Channel 4 Sales, which revealed that 56% of black-owned businesses only receive funding once they are successful, compared to just 35% of white counterparts who were given the same requirement by lenders. Last year, the initiative attracted more than 1,000 applications, with the TV adverts for the five beneficiaries seen by 21.5 million people, according to Channel 4. Among the winners of the inaugural scheme was The Turmeric Co - a nutrition brand set up by former footballer Thomas Hal Robson-Kanu. The health drinks company launched in 2018 to help athletes recover from injuries. The drinks are all made in the UK and are stocked in Wholefoods, Planet Organic, Harvey Nichols, and at David Lloyd gyms. “Inclusivity and diversity are such an important aspect of the world today,” said Mr Robson-Kanu. “Less than 1% of supermarket brands have black or multi-ethnic founders. Initiatives like this allow brands and individuals a platform to raise awareness and create opportunities. I think it’s brilliant.” Last year's other beneficiaries of Black in Business include tea manufacturer Dalgety Herbal Teas; ethical fashion brand LØCI; clean eating firm The Gym Kitchen; and hair care brand TreasureTress. Jamelia Donaldson, founder and chief executive of TreasureTress, said: “With the community we serve, it’s so important our voice is amplified, and people will certainly see us on TV. It will also help mainstream haircare brands understand the massive opportunity they’re missing out on.” Channel 4 said that across two years of the initiative, more than £1m of TV advertising would have been made available to black-owned businesses in the UK. “We are excited to connect four black-owned businesses to the transformative power of TV advertising, and, in doing so to help support their growth journeys," said Ewan Douglas of Channel 4 Sales. Elyn Corfield, chief executive of business and commercial banking at Lloyds, added: “Black in Business has proven to be a game changer in the journey towards building a more equitable business landscape. These entrepreneurs are not just growing their businesses - they are inspiring the next generation.” Applications for Black in Business will close on October 28. More information is available at www.channel4.com/blackinbusiness We're celebrating the success of the UK's black-owned businesses - and we want to tell you all about them in our #IAMBOB newsletter! Once a month, we share news, features and comment from companies led by black business leaders - from start-ups and SMEs to blue-chip corporations and household names.

Finance

Investor Maven signals confidence in North East deals market over coming years

A prominent investor in the North East has talked of its confidence that the region will see a healthy flow of deals in the next two years. Maven Capital Partners, which manages a range of funds in the region including the equity component of the Northern Powerhouse Investment Fund II (NPIF II), has signalled its optimism thanks to its current pipeline of deals and the range of businesses that have approached it. Speaking to BusinessLive, Rebecca MacDermid, an investment manager in the firm’s Newcastle office, said Maven had detected that some of the headwinds preventing businesses from growing in the recent past - including inflationary pressures and interest rates - were starting to abate, and there was renewed appetite for growth capital. Read more: First 14 gaming startups chosen for Sunderland esports accelerator Read more: Hundreds of North East jobs saved as metalwork firm bought out of administration She said: “We have been in the region for quite a few years now, and we’re feeling very optimistic about what the next year/two years looks like. Not just because of NPIF II but because of the deal flow that we’ve got and the range of businesses that we’ve seen come to us for a chat.” Since the launch of the £660m NPIF II in March from the British Business Bank, Maven has fielded more than 150 applications from North East companies and entrepreneurs, across a wide breadth of type and stage of business. That indicator of interest is welcome given last year’s figures on equity funding in the North East from the British Business Bank, which showed the region was behind its peers in terms of volume and value of deals, accounting for just 2.7% of overall UK deal activity between 2021 and 2023 and the total value of investment declining 40% to £91m. The North East is disadvantaged in league tables by being a smaller region with lower business density, but Ms MacDermid also says there are fewer angel investors available to kick-start a firm’s investment journey before equity deals come into play. As well as Maven’s “back to basics” approach to educating entrepreneurs about equity funding and allaying fears that investors are out to snatch control of companies, other groups have sought to address the angels gap. Ms MacDermid said: “I work with some fantastic organisations such as Innovation SuperNetwork and Lifted Ventures, who really are trying to dig into how we can change this because we know it’s a problem, we know getting angel investment is really difficult but let’s stop talking about it and start thinking about how we can change this.” Creating more identifiable success stories is also a priority. Maven has invested in several non-North East businesses that have set up bases in the region, including ecommerce specialist Revlifter and fintech Pockit, which have offices in Newcastle, and innovative Cambridge chip manufacturer Pragmatic Semiconductor, which has established a multimillion-pound Durham factory.

Finance

Nationwide takeover of Virgin Money to complete next week after judge approval

Nationwide Building Society’s £2.9bn takeover of Virgin Money is expected to go through next week after the deal was approved by a judge. Lawyers for the lenders secured the sanctioning of the deal at a specialist companies court in London on Friday. It comes after the Swindon-headquartered building society agreed to the takeover of its London-listed rival in March. Nationwide struck the takeover deal with a 220p-a-share offer for Newcastle-based Virgin Money, including a 2p-per-share dividend payout. At the end of a short hearing, Judge Sir Anthony Mann said he was “satisfied” that legal requirements had been complied with. The court heard that 90% of shareholders who voted at a meeting in May had backed the scheme. “It’s obviously a sensible scheme with financial benefits,” Sir Anthony said, adding: “There is no apparent blot on this scheme.” He continued: “I can see no reason not to sanction the scheme and in my discretion I will do so.” Earlier this month, the lenders told the stock market that the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority had both approved the takeover. The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5m customers, more than 25,000 staff and nearly 700 branches. But the move is set to ultimately spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.