A manufacturer of temperature sensors has expanded its operations in South Yorkshire after securing funding from NPIF – BEF & FFE Microfinance.
Dinnington-based Labfacility used the funds to acquire the adjacent 6,000 sq ft premises to its existing manufacturing and stores facility as it targets future growth within the export sector.
The property has been secured on a ten-year lease and will increase the size of the company’s site to 18,000 sq ft.
Labfacility produces a range of more than 5,000 temperature instruments, sensors, and couplings. It manufactures more than a million products each year which are sold in 120 countries worldwide and used in the engineering, pharmaceutical, aerospace, oil and gas, and food production industries.
Due to potential uncertainties caused by delays in Brexit, the company began working with growth accelerator manager Jim Scott to explore international growth options in non-EU markets. Export orders now account for more than 25 per cent of the company’s sales, including in regular orders from businesses based in the US, China and Australia.
NPIF – BEF & FFE Microfinance is managed by Business Enterprise Fund (BEF) and Finance for Enterprise (FFE) and part of the Northern Powerhouse Investment Fund.
The six-figure loan has enabled Labfacility to secure the new property to help meet demand. It will also support investment in upgrading the building as well as the purchase of new equipment, enabling it to boost production, as well as the creation of additional new roles including a planned six apprenticeships.
Martin Riddett, managing director at Labfacility, said: “We have worked with Finance for Enterprise for a number of years and during this time, the financial support they have provided has enabled us to innovate, expand and invest within our company for the long term. In recent years, there has been a lot of uncertainty in the export market, but the success we’re achieving is bucking the trend and some much-needed good news for Britain’s manufacturing sector.
“The support we have received will enable us to not only invest in developing and expanding our South Yorkshire site; we are also looking to create new skilled jobs within the local economy through our apprenticeship programme which will help to equip the engineers of tomorrow with the vital skills needed to succeed in the workplace.”
Alan Scott, senior investment manager at Finance For Enterprise, added: “At a time when the manufacturing sector has been particularly hard-hit as a result of the uncertainties surrounding Brexit and possible future trade deals with the EU, Labfacility was quick to seize the opportunities offered by entering into new export markets, but crucially targeted areas outside Europe, ensuring that the impact of Brexit could be mitigated.
“We have worked with Labfacility for a number of years and the approach they have pioneered has resulted in the company achieving significant growth in overseas markets, enabling the company to invest in new premises and jobs within South Yorkshire.”
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