A Leeds based distributor of detergents and fabric softener has secured a £400,000 Equity Linked Investment from Finance Yorkshire.
SNG Commercial Limited, which began trading last year, will use the investment to scale up and develop customer awareness and confidence in its Muvo brand and product range, which includes a bio and non-bio liquid detergent, fabric softener and dishwasher gel.
The business was established in 2010 by Simon Gunter, who identified a gap in the mid-tier laundry detergent market for a product which offered the quality of the big-name brands at a lower, more affordable cost to the end-user.
Following a thorough period of research, development and testing, SNG Commercial has now joined forces with a national transport partner to deliver stock nationwide to customers including Home Bargains and Fultons Foods.
Commenting on the funding package from Finance Yorkshire, Simon Gunter said: “This investment comes at an absolutely vital time for us, now that we are in a position to scale up and realise opportunities in the market. While it is early days for the business, I am confident that the high quality, low cost nature of our products will be highly attractive for retailers.”
He added: “Looking beyond the UK, the laundry detergent sector in Europe is worth £28bn each year, so the potential there is obvious. We are confident we will be in a position to explore opportunities on the Continent by 2015.”
Finance Yorkshire Investment Manager Katharine Braim said: “Simon has sought to develop a high quality product and establish an efficient manufacturing process over a considerable period of time before actually branching out into the sector. This, along with a product range which fills an identified gap in the market, and a highly experienced and enthused management team, gives us the confidence that SNG Commercial will go from strength to strength in the future.”
Red Sky Corporate Finance and Gordons Solicitors advised SNG Commercial on the deal, while Walker Morris supported Finance Yorkshire.
Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from UK Government and £45million match funding from the European Investment Bank.
