A distributor of laundry detergents and fabric softeners has secured a second major investment from Finance Yorkshire, taking the total amount invested by the regional funding body in SNG Commercial Limited to £1.2 million.
The £800,000 Equity Linked investment in the Leeds-based business, which began trading in 2013, follows an initial £400,000 funding package made available last year.
Since the first investment, SNG Commercial has expanded its range of products to include both laundry capsules and dishwasher tablets and gels, and has also developed Senses Pure, a fabric softener designed especially for children’s sensitive skin.
Its ‘Muvo’ and ‘Senses’ brands of detergents and fabric softeners are stocked in a number of discounters and wholesaler chains and the business is currently in discussions with major supermarkets, as well as distributors for the premium detergent brands.
The business has also appointed another Non-Executive Director to its board, who will be instrumental in gauging further market opportunities.
SNG Commercial was established in 2010 by Simon Gunter, who identified a gap in the mid-tier laundry detergent market for a product which offered the credibility of the big-name brands, but at a lower, more affordable cost.
SNG will use its second investment from Finance Yorkshire to secure better credit terms and volume discounts, in addition to providing working capital for stock purchases, recruitment and promotional activities.
Commenting on the funding package from Finance Yorkshire, Simon Gunter said: “This has been an incredible year for SNG, with the first investment being vital in allowing us to scale up and realise opportunities in the market. We have made significant progress since then, both in terms of expanding our family of products and establishing strong relationships with major retailers and distributors.”
He added: “This second round of funding from Finance Yorkshire will enable us to really capitalise on our success so far in the UK market, as well as looking at exporting later in 2015.”
Finance Yorkshire Investment Director Andrew Burton said: “We have now invested well over £1 million in SNG Commercial and that in itself speaks volumes about the confidence we have in Simon and his team. They have taken the time to develop a high quality product and establish an efficient supply chain, and that initial dedication and attention to detail is now paying dividends.
“We are very confident that with a young, motivated management team in place, and particularly one with such strong knowledge of the sector, SNG Commercial will continue to make a major impression on the UK market, and capitalise on overseas opportunities within the next 12 months.”
Gordons Solicitors advised SNG Commercial on the deal, while Walker Morris supported Finance Yorkshire.
To date, Finance Yorkshire has made 694 investments totalling £90 million.
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.
