17/02/2015

Finance Wales’ investment levels up 63% in first 3 quarters of 2014 -15 financial year, creating or safeguarding over 2,000 jobs

2014 – 15 financial year update for Finance Wales

Quarter 3

  • £11.4 million invested in 64 Welsh SMEs.
  • £6 million additional investment leveraged.
  • 798 jobs created or safeguarded.
  • Q Chip acquired by Midatech Pharma which concurrently listed on AIM, raising £32 million.

Quarters 1 - 3

  • £31.2 million invested in Welsh 148 SMEs.
  • £22.2 million additional investment leveraged.
  • 2,067 jobs created or safeguarded – 97% of Finance Wales’ annual target.
  • 3 Welsh SMEs backed by the Wales Technology Seed Fund.
  • 5 Wales Capital Growth Fund investments completed.
  • 9 projects backed by the Wales Property Development Fund.
  • 4 exits achieved, including 2 of Finance Wales’ most profitable exits/investment realisations.
  • MedaPhor listed on AIM and Q Chip was acquired by Midatech Pharma.

Finance Wales’ investment levels rose by 63% to £31.2 million in the first 3 quarters of the 2014-15 financial year compared to £19.1 million in same period in the last financial year.

These investments attracted additional investment totalling £22.2 to provide Welsh small and medium-sized businesses (SMEs) with a £53.4 million growth capital boost in the nine-month period.

Between October and December 2014, the Welsh Government subsidiary invested £11.4 million in Welsh SMEs, attracting an additional £6 million additional investment. 

With the backing of these investments, Welsh SMEs created or safeguarded 798 jobs in the quarter, taking the total number of jobs created or safeguarded by Finance Wales’ investments at the end of December 2014 to 2,067 – 97% of its annual target.

“Welsh SMEs have both the ambition and capability to make an even greater contribution to the Welsh economy and they’re choosing Finance Wales to provide them with the financial backing they need.  Our rising investment levels are a clear signal of their confidence and drive to succeed,” explained Finance Wales’ Chairman, Ian Johnson.

“Micro-businesses, start-ups and young technology ventures as well as more established businesses are all benefitting from Finance Wales’ investments. Our investments have a long-term impact on the Welsh economy and increasingly this can be seen in communities throughout Wales as these businesses expand, safeguard existing jobs and create new job opportunities,” he continued.

Group Investment Director, Mike Owen, is upbeat about Finance Wales’ performance so far in 2014-15.  He added: “Welsh SMEs’ confidence is up and they’re securing investment to fund some exciting business plans from us, their banks and other backers.  The range of funding options we now offer is also having a real impact - our investment levels were ahead of target in the first half of the financial year and they more than doubled in quarter 3. 

“The SMEs we invest in welcome our long-term backing and flexible approach. Q Chip’s success in December is an excellent example of this: Finance Wales was a founder investor in the company in 2007.  Q Chip, MedaPhor, Vista and Wholebake are all home-grown businesses that have made their mark and have exciting plans for the future.”

The Finance Wales Group invested £42 million in the first 3 quarters of the 2014-15 financial year.