Specialist procurement and inventory systems supplier, Propeller Holdings has received a £200,000 of follow-on equity investment from FW Capital to support continued expansion.
This is the second time FW Capital has invested in Propeller which first received £750,000 of equity in 2011. This was used to launch its new Pro-Vyda inventory system as well as to move to its new Gateshead premises in June 2012.
Since then, Propeller has increased turnover by more than 20% and seen strong sales for Pro-Vyda, an MRO system which allows manufacturers to control the use of consumables and spares during the production process.
New customers attracted by the system are in a wide range of sectors including food and beverage and automotive. Clients such as TRW, Intersnack, Unipres all report cost savings of up to 40% through using Pro-Vyda.
Propeller managing director, Carl Brookes said that the refreshed investment from FW Capital was very welcome. “We’ll use this latest investment to continue developing Pro-Vyda so it stays ahead of the competition and also to expand into Europe,” he explained.
FW Capital Investment Executive Michael Vassallo said: “Propeller’s management team are clearly focused on further expansion and continuing to develop innovative products and services that deliver real benefits for their clients. FW Capital is pleased to back this successful management team and our latest investment will help Propeller build on what they’ve already achieved.”
FW Capital drew on the North East Growth Plus Fund to make its investments in Propeller.
The Fund is part of the £125 million Finance for Business North East Fund targeted at established businesses in the region. It can provide single-round investments of between £350,000 and £1.25 million.
Advisers on the Propeller Holdings-FW Capital deal were Dickinson Dees LLP and DWF LLP.