Sheffield-based energy solutions manufacturer Energy Management Systems (“EMSc”) has secured £3m of additional funding as it eyes up further expansion and aims to become a £60m company in the next five years.
Following advice from the corporate finance team at accountancy and business advisory firm BDO LLP in Yorkshire, the funding further strengthens EMSc’s position as a market leader in energy saving technologies and comes following the company being named UKTI Exporter of the Year 2013.
EMSc, which currently has a turnover of £12.8m, designs and manufactures energy saving solutions for a wide range of sectors including retail, wholesale and leisure, as well as government departments and local authorities. Its flagship Powerstar voltage optimisation (VO) system has been recognised as one of the top two1 energy saving technologies, enabling organisations to save up to a fifth of energy costs.
EMSc employs over 100 people and has manufactured more than 4,000 VO systems installed in 15 countries. It moved into its new facility at Smithywood Business Park in Sheffield last year, increasing manufacturing capacity by 500%, and with the new funding in place the company is now capitalising on significant demand from both domestic and international markets.
BDO, which has offices in Leeds and Sheffield, acted on behalf of the shareholders of EMSc providing fundraising support, detailed business planning and financial modelling. M&A partner Jason Whitworth led the team, with support from senior manager Mike Clarke. RBS provided funding for the deal, with Stuart Watson of the bank’s Corporate Transactions Team & Darren Marshall, Director in Sheffield, heading the bank’s team. Mark Pownall at Baker Tilly provided due diligence.
Jason Whitworth, M&A partner at BDO LLP in Yorkshire, commented: “The funding gives EMSc a fantastic opportunity to build on its growth ambitions and we expect to see the business go from strength to strength. The UK remains its heartland, but EMSc is rapidly building an impressive international network and, with a new office in Australia, is receiving enquiries on a daily basis from around the world.
“This is another example of an innovative Yorkshire manufacturing business, which has set its sights on ambitious growth in a dynamic market. EMSc demonstrates that the “Made in Sheffield” stamp is still synonymous with quality and cutting edge design. We look forward to working with the management team as part of its ongoing growth strategy.”
Alex Mardapittas, CEO at EMSc, said: “The global community has ambitious strategies to reduce reliance on fossil fuels and, being the only company in the world with a patent on a voltage optimisation (VO) product, our technology can significantly help in achieving these goals. These funds will enable us to grow in our existing UK and overseas markets and target other markets such as the USA and China.”
Stuart Watson, Director at RBS, adds: “The RBS Divested team was delighted to support this business. It is always good to see a local manufacturer with a product that is both innovative & energy saving competing successfully abroad. Our loan structure reflected the forecast cash generation of the expansion plans rather than rely on a more traditional security based approach.”
