Here we feature the latest equity investment and acquisition deals in Welsh business.
Explorage
An Anglesey-based entrepreneur has received financial backing for the launch of an online marketplace for self-storage.
Anna Roberts, founder and chief executive of Explorage, has secured six-figure investment from a syndicate of nine business angels along with the Development Bank of Wales.
Business investor Huw Bishop of Camau Nesaf is leading the syndicate, while Angel Invest Wales has provided match funding from the Wales Angel Co-Investment Fund. Bangor University's M-SParc (Menai Science Park) Accelerator Programme has also committed funding to Explorage.
Explorage is an online solution for global storage providers and users, which has an e-commerce facility so that customers can buy packaging. Customer reviews of storage sites will also be available.
The global storage market is worth an estimated £48bn with approximately 27,000 new storage bookings each month in the UK yet finding, comparing and reserving the right self-storage is inconsistent and long-winded as many storage facilities don’t have instant booking functionality.
Ms Roberts came up with the idea for an online marketplace for self-storage and facilities, developing a user-led software model in the process to make it easier for customers to source and use self-storage.
The investment will now be used to make key hires and begin regional rollouts throughout the UK before scaling up internationally to take advantage of opportunities with overseas partners.
Ms Roberts said: "It sounds simple, and it is. Explorage will offer a frictionless online facility for customers to review, compare and book self-storage. Our revenue model means Explorage is risk free for storage operators; they can gain greater customer exposure to a wider demographic, diversify the source of their bookings, expand with more confidence, and fill up new and vacant space quicker.
“For me, the customer is everything and I really enjoy trying to make life a little easier wherever I can for people. Self-storage isn’t the most obvious technology start-up but there’s an obvious gap in the market and I’m determined that Explorage will be the solution that both users and providers come to love."
“The backing of the Development Bank, Huw as the lead investor and the wider syndicate means that we are now well-placed to realise our vision with the comfort of knowing that they understand the challenge of starting up and scaling a fast growth tech business. It’s a really exciting time and I’m proud of what we’ve achieved so far.”
Mr Bishop said: “Being in the position to offer financial backing to local entrepreneurs and business start-ups is hugely rewarding and can be a very tax efficient form of investment. There is definitely a growing network of angel investors in North Wales who are keen to get involved with early-stage investment opportunities.
“Having recently moved house, I had first-hand experience of the difficulties involved with finding storage so it was front of mind when I was first introduced to Anna. Her drive, passion and energy coupled with the opportunity in the market meant that it was actually very easy to get co-investors excited about the offering. The match funding from the Development Bank means that we have effectively doubled our impact so we’ll work together to maximise our firepower and drive the growth of Explorage.”
Tom Preene of Angels Invest Wales said: “It is often the simple ideas that become the very best businesses. Anna’s determination and entrepreneurial mindset means that she is definitely one to watch so we’re delighted to be supporting Huw and the syndicate of business angels with this investment.”
The £8 million Wales Angel Co-Investment Fund provides Welsh businesses with a key source of alternative finance through the encouragement of more active Angel investment.
The five year fund supports the creation of angel syndicates and networks across Wales by providing loans and equity up to £250,000 to investors looking for co-investment.
Bisley
Newport-based office furniture manufacturer Bisley has gifted its employees over half of shares in the company as part of succession plans.
Company owner and chairman Anthony Brown has established an Employee Ownership Trust (EOT) allowing 51% of company shares to be indirectly owned by Bisley's 500 employees based in its global offices in Newport, Dubai, New York, Paris, Germany, the Netherlands, and Ireland.
The remaining 49% of shares will be owned by Mr Brown and a few small minority shareholders. The firm said the immediate focus for the group is to manage its way through the various economic challenges in delivering profitable growth that allows the beneficiaries to benefit from being within the EOT.
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The EOT will be managed by a group of trustees including Bisley chief executive Richard Costin, who joined the company in February 2020 and has been working closely with Mr Brown on the business' succession plan. Mr Brown will continue as Non-Executive Chairman.
Mr Brown is the son of Bisley founder Freddy Brown. He joined the business in 1960 and took ownership in 1970 after his father's retirement.
This year marks his 52nd year as the owner of the heritage office furniture manufacturer. Today, the company produces over 15,000 items per week, exporting to over 75 countries around the world, with international sales accounting for around 55% of total turnover.
In recent years, the company has diversified by designing products for both the home and office, significantly expanding its e-commerce offering and establishing a new partnership with John Lewis. It is now working on developing products to suit the evolving hybrid workplace as well as expand its e-commerce offering in other countries.
Mr Brown said: “For some time now, along with the board of directors, I have been seeking ways in which to ensure the long-term success of Bisley, and at the heart of this for me has always been the most important element of Bisley, our people”.
Mr Costin said: "It has been an honour working with Mr Brown, bringing this exciting change to galvanise and unite all of us at Bisley.
“Our staff across the world mean so much to us and it has been a pleasure to complete the EOT at such a challenging economic time. This important announcement provides reassurance to our staff, customers and suppliers and it allows our ethos, values and independence to continue to thrive, while allowing us all to share in the success, and to continue the incredible legacy that Mr Brown has set."
Voltric
Electric vehicle firm Voltric is looking to scale up following financial backing from Development Bank of Wales and angel investors. The EV subscription business secured 'significant' pre-seed investment from a syndicate of eight business angels.
While the value of the funding was not disclosed, this was matched with investment from the Wales Angel Co-Investment Fund, alongside further investment from other private investors. Capital Law represented Angels Invest Wales and the angel syndicate, while Melissa Sikwila acted for Voltric in the deal.
Following the investment, the firm has now opened a new office at Tramshed Tech in Newport and will now be looking to invest in its technology and employ more staff as it looks to scale up.
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Chief executive Julian Mensah, who co-founded the business with Brent Oldfield in Bristol in 2019, said: "Our customer first solutions are designed to address the high cost and complexity of purchasing an EV, the abundance of harmful CO2 and NO2 in our air, and the growing demand for mobility to be practical, sustainable and efficient.
"We provide a subscription service for electric vehicles; users pay one monthly fee that covers an electric car hire, insurance, road tax, breakdown cover, maintenance and repair. They get an electric car that fits their lifestyle from one month up to 12 months commitment with minimal hassle compared to standard leasing agreements."
He added: "As a business we’ve been blessed with a vast network of supportive stakeholders but the experience of taking part in Fintech Wales’ Foundry has opened up so many opportunities for us allowing us to have regular conversations with potential partners such as insurance firm Admiral.
"Now, with the backing of the Development Bank of Wales and our angel investors, we are ready to scale up from our new base in Newport. We’ll be investing in our technology and our team so that more people can drive EVs and live the journey with us."
Voltric has been working with manufacturers including MG UK, Kia UK, Fiat, Tesla, and Mercedes. Additional dealer partners include KIA Fish Brothers, Richmond Motor Group and Sytner Mercedes .
There are more manufacturers and dealer partners expected shortly as the company expands its mobility offering, creating a MaaS (mobility-as-a-service) platform, offering users access to transport solutions.
Lead investor Eamon Tuhami said: “Electric car subscriptions are an important and innovative way of addressing the problems facing mobility in the UK today. Getting into EV for the first time is scary. There’s a lot of information, and misinformation, to sort through. Julian, Brent and the team want to make it as easy as possible to get people behind the wheel of an EV by matching great technology with excellent customer service. It’s a win-win for drivers and the environment which makes Voltric a very attractive investment proposition.”
Tom Preene of Angels Invest Wales said: “Voltric is a MaaS that is helping drivers to reduce costs and emissions so is great fit for us as an impact investor with a social purpose. By using our Wales Angel Co-investment Fund to back early stage investors like Eamon and this syndicate of eight business angels, we’re able to provide the initial support needed for the company to attract subsequent investment and achieve long-term sustainable success.”
The £8m Wales Angel Co-investment Fund provides Welsh businesses with a key source of alternative finance through the encouragement of more active angel investment. The five year fund supports the creation of angel syndicates and networks across Wales by providing loans and equity up to £250,000 to investors looking for co-investment.
Flotek Group
Cardiff-based technology firm Flotek Group has further expanded with its second acquisition in just two months.
The acquisition of MazingTree, a trusted technology and IT support service provider, sees Flotek further expand into the south west of England.
A longstanding business and partner of Microsoft Cloud, Dell and Veeam, , MazingTree clients will benefit from increased expertise in cyber security and a broader range of Microsoft Cloud services.
Jay Ball, chief executive and co-founder of Flotek Group, said: “We know how important having a dedicated IT provider with a local presence is to SMEs, and the high-quality services MazingTree offers are a natural fit with Flotek. We’re excited to be able to serve our existing clients in this region even more efficiently, with the support of MazingTree’s excellent team of IT experts.
“This is the perfect base for us and unlocks a hugely exciting potential for growth; it’s an area where we have seen our competitors consolidate and customers seeking a new strategic local partner. We will continue to drive SMEs with the right IT & Comms support they need to scale up and reach the next level of operation.”
The joining of the businesses will also encourage sharing of knowledge and expertise across the Flotek Group, which is set to triple in size in the next six months.
MazingTree’s technical team will integrate within the larger group of resource at Flotek and John Allan, MazingTree technical director, will remain in the group.
Hugh James
Cardiff headquartered law firm Hugh James has expanded with the acquisition of Manchester practice Potter Rees Dolan.
Potter Rees Dolan, which has an annual turnover of £7m, is a catastrophic personal injury and clinical negligence niche practice. In the past year it has secured settlements worth more than £125m for its clients. The firm employs more than 65 staff, including nine partners.
The value of the acquisition has not been disclosed, but is a significant move for Hugh James, which identified expansion in the north-west of England as part of its growth strategy five years ago.
Since then it has expanded its London presence as well as opening offices in Southampton and Plymouth. As part of the deal Hugh Potter and Helen Dolan will continue as Hugh James partners managing the Manchester office.
Alun Jones, managing partner at Hugh James, which has a turnover of £47.5m and employs more than 550 staff including 67 partners, said “This is an exciting development for us. Potter Rees Dolan is a well-established and very well-run Manchester firm, employing a great team of people. Our work aligns closely with theirs and together we’ll be able to provide an even better service to clients across England and Wales. It’s an honour that Hugh and Helen have chosen to pass the mantle onto us. They’ve built a very successful business over the years and I look forward to working with them as we enter this new chapter.”
On the acquisition Mr Potter and Ms Dolan said, “Hugh James has an excellent reputation. We share the same commitment to placing client care front and centre and we are confident we have also secured a really bright future for our staff. What stood out for us was that, while Hugh James is an ambitious business, it remains firmly rooted in community. We’ve been impressed by the approach the partnership has taken in carefully building its London presence and we are confident that the same will be applied to develop the business in Manchester.”
Potter Rees Dolan will continue to operate under its brand, but will at a future date be rebranded Hugh James.
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