Many growing companies say they want a different kind of investor. Someone to help them scale, without taking control. To challenge them, without driving them too hard, too fast. To treat them with the honesty, respect and empathy they deserve.

That’s why we exist. READY FOR BUSINESS - A YEAR IN REVIEW READY FOR BUSINESS - A YEAR IN REVIEW

04 Our year in Contents review

20 Our approach

28 Our people and partners

40 Our portfolio

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Our year in review

6 7 READY FOR BUSINESS - A YEAR IN REVIEW READY FOR BUSINESS - A YEAR IN REVIEW Forging Sir Nigel Rudd ahead Chair, BGF

These are interesting times to be running with two caveats. The first is that you have in uncertain a business. We’ve experienced widespread to have shareholders who are supportive and uncertainty since the EU referendum, but understand that this is a short-term issue despite the swiftly changing landscape, many and the business is great. And secondly, companies are still going for growth. We’ve you have to have a balance sheet that is not continued to invest in brilliant entrepreneurs this overloaded with debt. year – all with the ambition to forge ahead. times This is where BGF comes in – a supportive Whatever the challenge faced by our shareholder that backs companies it believes portfolio of companies and others like them, in over the long term, and is prepared to put our promise to them remains the same as we more money where and when it is needed. look to the year ahead. We’re ready for business. BGF is not a leveraged fund, so it can take a If there are innovative businesses with strong very long-term view on investment. leadership teams and lots of potential, then we will continue to invest. It is important that Our confidence comes from many things. we do so. We have the capital, the capabilities, network and infrastructure to power growth across When I was running my business it was the country. We have an unwavering belief always key to have access to funds or the in business and a mission to help ambitious ability to borrow when the market was companies to reach their potential. Companies down. Great fortunes are made in downturns, like Click Travel, Fluidic Analytics and Evoke, not when the market is riding high. We want which you’ll read about in this report. to make sure that companies have the reserves they need to make the most of the Our strength also comes from our team. opportunities in front of them. We have a dedicated, experienced and talented group of people pushing BGF and its portfolio I started my first business in 1982, when interest of businesses forward and I’d like to take this rates were sky high, as was inflation, and the opportunity to say thank you to each and exchange rate was terrible. But I managed to every one of them. I’d also like to thank our take on some strategically important assets at shareholders, whose confidence in us has that time. It was the basis for Williams, which enabled us to get to where we are today. went on to become one of the largest industrial holding companies in the UK. We look forward to yet another year, backing Britain and Ireland’s entrepreneurs. They are the In my experience, if you have a decent lifeblood of the economy and we’re proud to business you can get through a downturn support them on their growth journey.

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We’re ready for business, International outlook If there is a positive theme from Brexit, it’s not We have also had a good year in terms of anti-EU but rather pro rest of the world. We’ve realising some of the value in our investments. ready for growth, got to continue to work with and grow with For example, we exited from our minority the EU. But we also want to do more in the rest investment in Good Care Group in April 2019, of the world. We’ve helped to take the BGF when it was acquired by Sodexo following a idea outside of the UK. We started with Ireland significant period of growth. You can read about ready for the future in 2017, where we see the same long-term its impressive growth journey in these pages. prospects as the UK. Further afield, a parallel Canadian Business Growth Fund was set up in But we can’t become complacent and not Stephen Welton, founder and CEO, BGF 2018. We have worked closely with the team every investment will be a success. That’s the there and cemented our relationship with the nature of entrepreneurship. One big question first joint investment in August, £9.3m backing on my mind now is how the UK can provide for full service digital consultancy Appnovation, even more capital to support innovation and Running a business is often about answering happening in the world, but you can focus which has offices in Reading, UK and Vancouver, the growth economy? What we have achieved, a series of important questions. Here at BGF, on what you’re doing in your own business Canada. Looking ahead, we’re actively hoping along with our shareholders, is impressive. we have spent the past twelve months and plan accordingly. to replicate this success in Australia. With But we haven’t finished yet. If we are to truly answering a number of our own. The first globalisation in question, we need to limit the transform the prospects of the UK we need to question was whether there is demand for an As we’ve seen over the past twelve months, impact on growing companies. be even more ambitious and give the innovation investor in growing businesses. We asked this there are many entrepreneurs and business economy what it needs to flourish. back in 2011 when we set up BGF as the world leaders who embrace this attitude. For example, was emerging from a severe financial crash. we had our most active day in June 2019, In 2019, we reached a significant milestone committing £48m in 24 hours. that we believe answers that question once and for all – reaching the £2bn invested mark. Turning uncertainty into opportunity Does that mean the job is done? Not at all. Instead, it gives us a lot of confidence about Now, more than ever, businesses need a the future. We’ve proven demand by creating helping hand and an investment firm like BGF investment capacity across our regional is ideally placed to help companies navigate offices, delivered in a way that is proportionate, through much more uncertain times. It resonates patient and attractive to a wide range of with our own DNA. We were set up to deal ambitious entrepreneurs. We know there is with a similarly unsettled environment and we no substitute for being close to companies delivered. Now we’re getting into uncertain and part of the local community. We’re no times again. longer experimenting. BGF’s approach is working, with over 70% of our investment As we look ahead, there are real storm clouds going to companies outside of London and – trade wars between the US and China, Brexit the South East. and slowing economies across the major industrialised countries. The rapid change We’re ready for business towards a new technological and knowledge- led economy creates a requirement for different Another big question we have answered – skills and a different approach. From a BGF are we ready for business? Our £2bn milestone standpoint, rather than just navel-gazing, we would very much suggest that we are and this are working with individual companies and has been an important message from us to entrepreneurs in growth sectors to help them the market and to entrepreneurs who may be answer some of those questions. We’re also grappling with the same question. How do you doing this by embracing new industries – life get ready for business at a time like this, with sciences and advanced technology are just shifting political sands and economic flux? two areas we’re increasing our footprint in as we How do you bring clarity when there is so look for the next economic growth areas. much uncertainty? The answer is by forging And that’s before we fully explore the whole ahead and continuing to go for growth. green agenda. You can’t always make sense of what’s

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Investment summary Overall activity since 2011

£428m invested between 1st Oct 2018 - 30th Sept 2019 (follow-on and initial) £46m £69m £313m £2.1bn 296 570 Early-stage and Quoted Growth Invested Companies backed Number of investment ventures rounds including initial and follow-on

50 new companies backed between 1st Oct 2018 - 30th Sept 2019 £555m 66 Returns generated Exits 5 16 29 on exits Early-stage Quoted Growth and ventures

Further highlights

We generated an operating profit of £23m as of Dec 2018 We were named the most active investor in the world for growth and expansion, for the third year in a row* First investment company to win the Queen’s Award for Enterprise – Innovation We experienced our most active day ever for capital investment in June 2019, committing £48m in 24 hours

12 Source: Pitchbook 2019 Global League Tables 13 READY FOR BUSINESS - A YEAR IN REVIEW

Backing ambition wherever we find it

Portfolio companies

BGF regional offices BGF Birmingham team in their new office, the iconic Lewis Building

A local approach

BGF is a local investor. With 14 offices across the UK and Ireland, we’re close to Gavin Petken the companies and teams we support. Head of Investments - South of England, We’ve worked to create contemporary spaces Wales & Quoted for networking, dinners, meetings and more. Today, investee companies use our office network to host everything from customer events to training days and media launches.

Andy Gregory In the past 12 months: Head of Investments - North of England, The Birmingham team now occupies the Ireland & Scotland top floor of the city’s iconic Lewis Building The Bristol team has a new harbourside location in Queen Square The Edinburgh team moved into its new home on Melville Street More than 70% of BGF-backed growth businesses are headquartered outside the capital The Queen unveiled a plaque at our London headquarters to mark the birthplace of GCHQ.

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Supporting industry- defining companies AIM-listed Tekmar provides protection equipment to the global of the future offshore energy markets. BGF invested in the business in July 2019

Simon Calver Head of Investments - Ventures

The vibrant early-stage sector is filled with Gousto was a great example of this - we were Accelerating growth inspiring companies, many of which are at the part of the most recent £28.5m raise in 2018, cutting-edge of technology and shaping the which followed our original investment of future with their drive and innovation. BGF £3m in 2015 and follow-on funding worth £13m began life with a focus on growth companies since then. for the brightest but over the years it became apparent that our long-term, patient approach could be used to The venture capital space is notoriously London- support some of these high-growth, exciting centric, and so over the past 12 months, we’ve listed companies younger companies. And why wouldn’t we? focused on broadening our reach to support early-stage companies across the whole of the Patient capital is a great option for companies UK. We’ve established early-stage champions Tom Jenkins that are establishing themselves, and our ability in each of BGF’s regional offices who act as a Quoted team to provide follow-on funding works very well for lightning rod for opportunities outside London. those still working towards profitability. Looking ahead, we want to continue increasing The AIM market is home to significant growth We also believe our approach to investing From data science to quantum computing and our reach from technology companies into and opportunity, but also volatility. With rising differentiates us. Beyond finance, we aim to even space, our investments are powering other high-growth industries. Life sciences has concerns over liquidity and other structural act as a helpful connector and advisor to our emerging industries with the capital and advice been an important area for us recently, and developments leading to outflows from smaller companies, principally through access to the they need to grow. We’ve now invested more we’re also looking at advanced manufacturing, companies, the quoted small cap market BGF Talent Network of business leaders, sector than £250m in over 50 early-stage companies. sustainability and space. The UK is flush with is in need of investors that can help redress experts and board-level non-executives. There’s been a marked increase in the appetite entrepreneurial talent and we want to leverage the balance. BGF has helped a number of our investments for follow-on funding too, as our earlier the BGF platform to support the brightest to find new board members, suppliers and investments start to mature and seek early-stage companies in the country. As a specialist investor in this space, BGF commercial opportunities. additional growth capital. has created an investment model to specifically support the needs of micro-cap companies – We invest in the AIM market’s most promising helping to smooth out the inevitable bumps and ambitious companies. We look for in the road to rapid growth. By corner-stoning companies with the potential to grow rapidly, fundraisings and being prepared to invest led by high quality management teams. for the long-term, we provide a degree of While firm believers in quality, potential certainty for businesses who must navigate and ambition, we are sector and geography an inherently choppy market. agnostic. Experience suggests that the most promising listed companies can be found not Unlike many of our peers – often subject to just in familiar cities and clusters, but right tax driven constraints or without permanent across the UK. capital funding structures– we are not restricted in our ability to provide follow-on funding and The UK micro-cap sector is one we believe capital for acquisitions. In addition, given BGF’s in as an engine of future growth, potential and evergreen balance sheet, we do not face the innovation. BGF aims to be its most effective, issue of redemptions that could require us to exit helpful and useful investor. investments before the time is right, and we can provide flexible solutions where appropriate.

16 Founded in 2015 by Rafael Jorda Siquier, space satellite startup 17 Open Cosmos raised $7m in funding in 2018, led by BGF READY FOR BUSINESS - A YEAR IN REVIEW READY FOR BUSINESS - A YEAR IN REVIEW

BGF seeks to work with portfolio companies We’ve completed over 60 exits, so we’re on hand to achieve their goals. Our approach begins with to help founders with anything from succession listening to management teams, rather than planning and bolstering the management team, making assumptions. We ask them about their to organising financial accounts so they can Realising business goals, about the type of support they demonstrate value and confidently answer any want and would find most valuable. They might questions that come their way. plan to grow the business over the long-term, with no plans to sell the company, or to exit in One of the biggest lessons for entrepreneurs in a shorter time horizon. Whatever the goal, the exit process is around balance. One can really we do what we can to help CEOs and get absorbed in a transaction process – but it’s value for our management teams achieve the ideal outcome important to make sure the business continues for their business. to flourish. Another thing that surprises people is the role of luck in the process. An exit depends The decision as to when, how and whether on two parties being ready at the same time, to exit remains with the portfolio company but ready to sell and ready to buy. That’s the part if selling the company is the goal, there are a leaders can’t control. We’re here to help prepare ambitious number of ways we can help them prepare. for the things they can. portfolio Recent successful exits Jumpstart R&D tax credit specialists

companies Invested since: Feb 2014 Amount invested: £3.4m Acquired by Visiativ Group in Jan 2019

The Good Care Group Care service provider

Invested since: July 2016 Amount invested: £2.5m Acquired by Sodexo UK in April 2019

TCL Group Landscaping and grounds maintenance company

Invested since: May 2014 Amount invested: £16m Acquired by idverde in October 2019

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Launching Ready for Business

In our first 18 months, BGF completed an average of one investment a month. In the last 18 months, that number has tripled to one investment a week on average.

BGF was set up in 2011 during the aftermath of And yet, during periods of instability, capital the global financial crisis. Every year since then, investment is often the catalyst for longer-term more and more entrepreneurs have chosen to success. This belief has been the driving force access our long-term capital to support their behind our own activity. growth plans. Ready for Business is our commitment to A unique moment in British politics has unfolded support small business growth and gather over the past 18 months. Uncertainty in this our network to share knowledge and ideas. Brexit era has been at an all-time high, and many We’re proud that it now reflects a record CEOs have shifted their focus from expansion year of BGF investment. to day-to-day management. Indeed, there has been little escape from the complexities of the past year. The roadshow

Ready for Business is now on tour. We’ve held events in London, Edinburgh and Birmingham and more dates are being added for 2020. With special thanks to the following panellists for their contributions:

London: Edinburgh: Birmingham:

Rosaleen Blair CBE Will Whitehorn Alan Barratt CEO of Alexander Chair of SEC and Deputy CEO of Grenade Mann Solutions Chairman of Stagecoach Jason Wouhra OBE Sir Rod Aldridge OBE Andy Lothian Director of East End Foods Founder of Capita CEO of the Insights Group Steve Stopps Edwina Dunn Audrey Baxter Development director Founder of Dunnhumby Executive chair of of Excalibur Games and CEO of Starcount Baxters Food Group Pam Waddell OBE Jimmy McLoughlin Founding director of Special adviser to the former Innovation Alliance for prime minister Theresa May West Midlands Our panel chairs Broadcasters Fiona Bruce, Louise Minchin and Kirsty Wark

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Our approach

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We’re a minority investor Investment as so you’re in control BGF provides equity investments in exchange for it should be a minority stake. Wirral-based Evoke was set up by Neil Clark and Dean Ward who took BGF on board as a minority partner in 2018. BGF makes its investments from an evergreen balance sheet, meaning we recycle the capital we receive after successful exits. Our funding comes We fund new opportunities as your long-term partner from our shareholders - Barclays, HSBC, Lloyds Our initial investments are typically between £1m Banking Group, RBS and Standard Chartered. and £10m and our follow-on funding supports further Since we’re not a traditional investment fund, we growth opportunities. don’t have arbitrary deadlines for generating returns BGF has supported Gymbox’s new site rollout or exits. We can be a long-term investor where the with three rounds of funding since 2014. pace of growth in your business is set by you, and where we share in the proceeds of growth together. We offer flexible funding for your ambitions

We know that every business is different, so we offer flexible funding to suit your needs. That could be through a mix of equity and loan notes into your business or out to existing shareholders.

Family business PPS is using BGF’s growth capital investment to support acquisitive growth.

We support all stages of growth through dedicated investors

We invest from earlier-stage and ventures to more established SMEs and quoted companies. And because we provide follow-on funding we can continue to invest in the same company through all these stages.

Recipe box company Gousto has built significant scale since BGF’s initial investment in 2015.

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Unrivalled access to a wealth of experience

Cate Poulson Head of Talent Network

We’ve enjoyed another momentous year This focus on quality matchmaking means for the Talent Network. Not only strengthening we aren’t afraid to challenge assumptions our reach yet again, surpassing 5,500 around what kind of person will work best in connections (ranging from board-level a role, taking a more creative approach when executives and strategic partners to interim it is appropriate. directors and investors) but also celebrating our 200th non-executive appointment. This was certainly the case when we were We’re proud to say that in eight years, able to assist listed company Macfarlane we’ve introduced hundreds of companies to Group in finding a new non-exec for its board. potentially transformative board-level support It can sometimes be challenging for companies The BGF Talent Network team in London and enabled the development of powerful to find high-quality, non-exec directors and leadership teams for our portfolio. we were pleased to be able to help introduce Andrea Dunstan skillset and experience, The Talent Network is an integral part of bringing a different perspective to the board BGF’s approach. By building such a strong role. It’s great to see Andrea on the board base of experienced connections, we’re able now, bringing her wealth of experience from to support companies on everything from Premier Farnell and AstraZeneca. Each year, the range of businesses we work With a diverse range of skillsets on board, ad hoc advice and commercial insight, to with grows. It’s another reason for us to we’re also concentrating on bringing greater flexible, interim leadership, to a seat on the Another recent example is TickX, an early-stage, keep investing in our network, building on a gender diversity to the mix, as well as regional board. Each introduction is carefully thought fast-growth company we backed and helped solid base of contacts to ensure we have spread. We’re delighted to say around 60 per through – ensuring that we always find the to find a chair for. We introduced the team to a suite of skills and real-life experience. cent of our network is based outside of the best person for the job. serial entrepreneur Laurence Marlor, not your This past year, we have put a focus on building capital (40 per cent in Greater London) and can average corporate chair but someone who had our pool of interim support – from financial serve companies in every corner of the country. Our tailored approach in helping companies a range of experience in digital consumer and operational directors to sales support find talent is much like our investment, services that we thought would bring huge and even troubleshooters. We’re aware that Looking ahead, we are excited about yet patient. We spend many years developing value to the company. businesses may want to speak to those who another year of making valuable connections relationships with experienced chairs and non have experience navigating challenging and powering progress for our portfolio. executive directors, only introducing companies markets – those who bear the battle scars of to them when we know it’s the right fit. downturns and can help the next generation of leaders in whatever they face.

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Creating network opportunities across the portfolio

The BGF portfolio is one of the largest groups of actively growing businesses in the UK. Throughout the year, we host Portfolio Day, Finance Directors Day, COO Day and, new for 2020, a Marketing Day. These events provide opportunity for like-minded businesses to share ideas and exchange contacts. Our regional teams also regularly host portfolio dinners and more informal get-togethers.

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Our people and partners

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BGF’s collaborative culture

Relationships lie at the heart of BGF. They Working closely with ambitious entrepreneurs support every decision, underpin every deal from a range of sectors keeps the investment and build every business that we invest in. team motivated. “The most interesting thing “From day one, we must believe in the is hearing their stories,” says Gemma. BGF’s Leeds team tackled the Yorkshire Dales’ Three Peaks management team we are looking to back and “The good times, the bad, the sacrifices Challenge in July. The 40km hike, which includes 1,600km of have a good rapport with them – otherwise they’ve made to get to where they are and the climbing, took around 12 hours to complete and raised money it’s not a deal for us,” says Gemma Hamilton, determination they have when they see real for Variety, the Children’s Charity in Yorkshire – helping to fund much-needed equipment for seriously ill or disabled children investor for BGF in Central Scotland and opportunities in the market.” Northern Ireland. A culture of collaboration, knowledge-sharing These powerful relationships are also and healthy ambition ensures that there is good fostered internally across all 14 regional offices. communication between the regional offices. “We recognise that no matter how big we “It’s all about sharing our sector knowledge become, our business is always about people with each other and considering all our other and evolving relationships,” explains Paddy companies in the portfolio for the benefit of Graham, who leads the investment team in all the companies we support,” says Gemma. Getting active Edinburgh and Belfast. Monthly team meetings and seasonal away A shared belief in BGF’s mission unites and days keep everyone in the loop and help build for charity inspires everyone in the business. “We all want friendships too. “We make sure that we all to be part of something that we feel is making get together as often as is practical to share a tangible positive difference, not just to people’s stories, thoughts and do a bit of business – but lives but to the UK and Irish economies,” it’s also about having fun along the way,” says Claire Lamb says Paddy. “Everybody in the organisation is Paddy. “That’s the best way to build lasting Director of HR, BGF focused on this.” relationships, and I think we’ve done that extremely well.”

Corporate social responsibility is about so Around seven young people aged between much more than making a donation. It’s also 13 and 24 are diagnosed with cancer every about empowering people within the business day in the UK and the Teenage Cancer Trust to act for the causes that matter to them. is currently the only UK charity providing This year we partnered with the fundraising app specialised nursing care and support for young AtlasGO to become ‘sweaty changemakers’ people with cancer. By raising £10,000 we and, by committing to as much physical activity could help fund 330 hours of nursing support in as possible in one month, aim to raise £10,000 specialist cancer units and local communities for the Teenage Cancer Trust – a charity nationally. Every £30 raised powers an hour chosen by BGF staff. of nursing support.

32 Paddy Graham (centre) and Gemma Hamilton (right) are investors in BGF’s Edinburgh office 33 READY FOR BUSINESS - A YEAR IN REVIEW

Collaborating across the Atlantic BGF and the Canadian Business Growth Fund

George Rossolatos Chief executive, CBGF

The Canadian Business Growth Fund continents and significant operations in both (CBGF) was established in 2018, supported Vancouver, Canada and Reading, UK, the by 13 Canadian banks and insurance companies, business presented a great opportunity to to address the growth capital gap in the collaborate with BGF. Following eight weeks Canadian market. of diligence and collaboration by our respective investment teams, CBGF and BGF jointly Through our discussions, BGF and CBGF have invested £9.3m to support Appnovation’s built a great relationship and Stephen Welton growth plans. and I have spoken many times about finding a company that we could co-support. We were The companies we both seek to support are thrilled to find Appnovation, an interesting, looking to scale by definition, often beyond ambitious company with interests in both the Canada in our case, and beyond the UK in UK and Canada with plans to expand in Europe BGF’s, so finding companies that we can both from a base in Reading. help certainly amplifies our collective impact. Stephen and I are thrilled that we could both Appnovation is a full-service digital consultancy further our respective mandates in a joint that works with companies to drive innovation investment and we look forward to the prospect and growth focusing on data, user experience of further collaboration in the future. and design. With offices across several

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Supporting Irene Graham CEO, The ScaleUp Institute the scale-up

BGF turns nine in 2020, yet it seems only gap and scale-up challenges, and to address yesterday that the banking sector came the issues in ways that brought attention together to launch the company. As a managing and practical solutions at a national, regional, ecosystem director of Standard Chartered, working with and international level. the British Banking Association at that time, I remember this vividly; there existed a chronic BGF has supported our mission from the very gap in the market between growth finance and start. While access to finance is clearly part scaling businesses, which BGF was created to of the answer to the issues occurring, BGF also address, backed by our largest UK banks. addresses many of the talent and leadership challenges. It works hard to address issues Fast-forward to today and BGF has grown to regarding institutional investors and what’s become the single most prolific investor in UK needed in the patient capital marketplace, while scale-ups – an incredible feat. Really delivering its talent pool of leaders provides support to on the mission it was set up for. But despite growth companies looking for guidance. this, there is still much work to be done. As fundamental as growth finance is, too many Our own organisations are scaling too. BGF other barriers prevent growth companies from and SUI and are seen as real exemplars of what thriving. For example, scaling businesses face can be done. Other countries, such as Canada, critical challenges with accessing the right talent have a keen interest in how we have approached and leadership options, as well as an uphill these issues and are seeking to work with us on struggle in getting access to UK and international the international scaling agenda. Back home in markets, particularly in wading through the the UK, we’ve been successful in changing the bureaucracy of corporate and government government’s strong narrative on ‘SMEs and collaborations which are so vital to them. start-ups’ to ‘SMEs, start-ups, scale-ups’ and high-potential growth companies. We founded the ScaleUp Institute (SUI) at the end of 2015 to address barriers like these. As a result, we have seen scale-ups embedded At the time, the UK was celebrated as one of into the remit of Innovate UK and the British the very best places in the world to be a start- Business Bank, as well as local strategic up. Our mission was to extend this accolade to economic plans, including local industrial scale-ups, the backbone of our UK economy. strategies. We have also been encouraged by the enhanced use of government held data We knew there was some support out there to better pinpoint scaling businesses, for growing businesses – but simply not connecting them with solutions relevant to enough and not with sufficient focus at either them. It is also good to see that the wider a national or, in particular, a local level. So public, education and private sectors are more our goal was to work with the ecosystem by and more embracing of scale-ups as a core part catalysing collaboration; educating on the issues of their activities. So while there’s still plenty and on what was already in place and working; of work to be done as our scale-up leaders and encouraging development of additional consistently reflect, but as long as we maintain support where urgently required. We wanted to this impetus and focus, the future looks bright provide a focal point for addressing the growth for the scale-up sector.

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Nurturing the next generation

As well as supporting businesses today, BGF is dedicated to inspiring and enabling the next generation of entrepreneurs too. We do this in a number of ways, including the ongoing support of the New Entrepreneur’s Foundation (NEF) – a brilliant organisation that gives talented and ambitious young people direct access to early-stage businesses, offering them a taste of what it’s like to run a business and setting them on their own course to becoming an entrepreneur. Here we meet two of NEF’s impressive alumni: Kike Oniwinde, founder, BYP Network

Eliot Brooks Class of 2014

Eliot Brooks was part of the New Entrepreneurs They launched Thriva in 2016 with the aim Kike Oniwinde Class of 2018 Foundation (NEF) when he had an idea for a of putting better health into the hands of product that is now transforming the everyone. Thriva develops home blood test kits healthcare system. and since it launched, the company has helped Kike Oniwinde runs the Black Young After launching a business venture aged 18, Kike over 100,000 people keep track of their health. Professionals Network (BYP) which helps knew there was a lot to learn – so she turned to In 2014, while on his NEF work placement, Thriva too is in good health, with the company black professionals to connect and find job the New Entrepreneurs Foundation (NEF). “We Eliot met his future co-founder Hamish on track to double its turnover this year and opportunities. Kike was inspired to launch very quickly realised that we didn’t have a clue Grierson. “We were in a cafe talking about £6m secured in new funds. the network after she noticed a lack of what to do and so I stopped doing that business. how antiquated healthcare is,” Eliot explains. diversity in the corporate world. Then I had the idea for the BYP Network, but I “At a time when we are surrounded by As well as introducing co-founder Hamish, knew I needed help. A friend told me about NEF, companies like Monzo who are putting NEF also played an indirect part in Thriva finding Growing up in London, Kike was a naturally so I joined.” consumers in charge, we felt like there was some of its first investors. And more recently, academic and athletic student. She flourished a really exciting opportunity to help people Eliot has added two NEF alumni to Thriva’s at school and was a Team GB javelin thrower Since taking part in NEF in 2017, Kike has manage their health.” growing team. “The biggest thing I learned from at university. After graduation, Kike secured seen her network and her business grow. NEF was the power of good connections. a graduate position in the City. “I realised that “It was really, really good for me. I made great I learnt that forming strong, powerful bonds in the world of work there wasn’t much connections. I had a great coach and a great with people makes for a much better network, diversity,” Kike explains. “It sounded like there mentor. And even now, I still get so many rather than just trying to get to know as many was but when you actually get into it, you great opportunities through NEF.” From the people as possible.” find that you’re the only black person there. connections she made at NEF, Kike even raised And I just thought that needed change through £150,000 of pre-seed funding to grow the Eliot’s time at NEF also taught him the a real solution.” BYP Network. importance of resilience in business. “The sessions on resilience have been super Inspired to make that change, Kike decided Being surrounded by fellow entrepreneurs has powerful and helpful over the last two years. to launch the BYP Network, a global community helped Kike grow in confidence and business When you’re fundraising, it can be really that helps black professionals find each acumen. “Being around like-minded individuals tough getting those rejections but it’s true other and find work. The network also helps is so important because you’re on a journey what they say – resilience is a key trait you corporations tap into a rich resource of talent. and people around you don’t always understand need as an entrepreneur.” “A lot of corporations say the talent doesn’t it,” Kike explains. “But if you have others with exist and they can’t find it. But actually, the knowledge around you, it’s really powerful so Eliot’s advice to anyone considering a career talent does exist – so we find the talent for I’m always a big advocate for NEF.” as an entrepreneur is to seriously consider them and they can tap into it,” Kike explains. taking part in NEF. “I would say think long and hard about whether entrepreneurship is for you – and if it is, apply.”

38 Eliot Brooks (left), with co-founder Hamish Grierson 39 READY FOR BUSINESS - A YEAR IN REVIEW READY FOR BUSINESS - A YEAR IN REVIEW

Sir Mark Walport Innovation CEO, UK Research and will play an Innovation (UKRI) The UK is an extraordinarily innovative country. Our R&D investment as a percentage of GDP is 1.7 per cent, yet we perform well above that Specialised facilities such as the Alan Turing in terms of the impact of our research and Institute in Kings Cross, which focuses on data innovation. For over a decade, the UK has been science and artificial intelligence, also make a important first among G7 countries in the extent of the huge contribution, providing visible leadership citations of our research and more than 70 to drive forward their extensive communities. unicorns have grown out of this, building on our strengths in research and innovation and strong The creation of UK Research & Innovation, the business environment, more than any other national funding agency investing in science, country in Europe. research, and innovation in the UK, brings role in together the seven research councils, Innovate Success stories are coming in across sectors, UK, and Research England to look across the ranging from life sciences to creative industries entire breadth of the knowledge economy from and manufacturing. Every sector has the potential discovery research to innovative companies. to be transformed by innovation, and that’s what Our mission is to generate knowledge to create makes it such an exciting time. impact. The UK is already a testbed for new the future technology trials, for example 5G generators in Artificial intelligence, cybersecurity, and data Surrey, and driverless-car testing in Bedfordshire. science are transformative fields and we have outstanding businesses in these areas. With Looking around the world, innovation and the an increasingly global technology network, we desire to drive progress are globally competitive economy need to support people to take advantage of activities. There are plenty of countries, large and opportunities while making sure we are innovating small, innovating and there’s no question that responsibly and increasing our awareness of R&D has to be an important part of the future of potential vulnerabilities that may arise. the UK if we’re to continue as one of the world’s leading economies. We’ve also seen advances in financial technology, our satellite industry is blossoming, and there’s The UK is going through a huge moment of enormous innovation in the creative industry – change, which is provoking a lot more discussion everything from virtual reality through to lighting about what our future economy will look like. The and sound technology. importance of research and innovation is a highly salient political issue. We welcome the ongoing All this progress is underpinned by world-class government commitment to increasing R&D universities and institutions and the bright, spend to 2.4 per cent by 2027. Achieving this will ambitious, and creative people that we support. require many partnerships, not least between UK We supported more than 24,000 researchers Research and Innovation, private capital and the and over 27,000 graduate students last year. business sector. We have been increasing our support for the brightest minds with funding for new Centres for We urgently need innovation to tackle global, Doctoral Training, including £50m specifically social and environmental challenges and for AI PhDs, and the newly launched Future opportunities. This requires stable policies Leaders Fellowships which will support at least and long-term commitment. UK Research and 550 fellowships over the next three years. Innovation will rise to this opportunity.

40 BGF’S CEO Stephen Welton sits on the board of Innovate UK, part of UKRI 41 READY FOR BUSINESS - A YEAR IN REVIEW READY FOR BUSINESS - A YEAR IN REVIEW

Our portfolio

42 43 READY FOR BUSINESS - A YEAR IN REVIEW Advanced technology

Automotive and aerospace Your ambitions, Business services your way Infrastructure, construction and property services The future is being shaped by the Since 2011, we’ve backed close leaders, inventors and problem solvers to 300 private and public businesses, who are powering up new industries from those at an earlier stage of their Energy, oil and gas and innovating the old. journey through to companies with decades of trading history. BGF exists to find and support these businesses. We focus exclusively BGF’s in-depth experience covers all on growth, and our ability to help industries – from energy, oil and gas, to Food and drink entrepreneurs achieve it. life sciences, healthcare and education.

We invest in ambitious companies We see potential in every corner of and entrepreneurs in the UK & Ireland. the UK & Ireland, and we’re determined We back businesses that are making to support it. Health, care and education moves, empowering teams and building futures. This chapter includes details of businesses currently putting our funding to work. IT and comms

Leisure, hospitality and travel

Life sciences

Media

Retailers

Specialist engineers

44 Waste management READY FOR BUSINESS - A YEAR IN REVIEW

Advanced technology

Initial Company BGF Company Description investment date location office

Aimbrain Biometric authentication platform June 2017 London London

Celaton Artificial intelligence software company December 2012 Milton Keynes Milton Keynes

Garrison Technology Cyber security technology company March 2017 London London

M Squared Photonics and quantum technology April 2012 Glasgow Edinburgh

Open Cosmos Simple and affordable space missions December 2017 Oxford London

Design and manufacture Scientific Digital Imaging January 2017 Cambridge Milton Keynes scienctific products 46 READY FOR BUSINESS - A YEAR IN REVIEW

M Squared

CEO Dr Graeme Malcolm takes a quantum leap into new markets

“The power of science to overcome some of followed four years later by further investment humanity’s most pressing challenges should to back M Squared’s rapid growth. In fact, the not be underestimated,” says M Squared CEO business has experienced year-on-year growth and co-founder Dr. Graeme Malcolm OBE. since BGF’s initial investment in 2012, roughly “For as long as I can remember, I saw science doubling its revenues every two years. as the future, something that could be used to make things better for everyone.” “The investment in 2016 allowed us to scale our manufacturing capacity, launch our Innovation With M Squared, Graeme is now turning Group and expand in key export markets,” that boyhood dream into reality. Determined he says. “BGF’s continued support makes our to create a business that could transport work possible and we view its investments as theoretical concepts out of the lab and into the endorsements of the impact we are always real world, he launched M Squared in 2006. seeking to make.”

Since then, the photonics and quantum Reflecting the team’s vision, M Squared’s company has harnessed the power of light to inventions and innovations in recent years do some amazing things – including laying the have increasingly focused on improving foundations for quantum computers, creating people’s lives. some of the most detailed images of the brain and making history’s most accurate clocks. “Our lasers are transforming how we detect, diagnose and treat diseases like Alzheimer’s and “We began our work with BGF in 2012,” cancer. Meanwhile, we have demonstrated our he says. “My co-founder and I had previous ability to teleport quantum states – the potential experience building a technology business so uses of which are pretty much limitless.” we appreciated the importance of an equity injection. We did our research and settled on M Squared has fast developed a globally- BGF, who we then approached directly.” recognised reputation for world-class knowledge, products and services. The business That early investment saw M Squared boost continues to go from strength to strength, its capacity to deliver on critical medical and proving that great things can happen when defence-related work. The initial funding was innovation meets investment.

48 READY FOR BUSINESS - A YEAR IN REVIEW

Automotive and aerospace

Initial Company BGF Company Description investment date location office

Risk management and crash CMS July 2018 Milton Keynes Milton Keynes detection software

FleetonDemand Fleet management technology October 2018 Saltaire Leeds

Lightfoot Connected car technology October 2018 Exeter Bristol

Paintbox Hi-tech paint finisher of luxury cars February 2016 Dudley Birmingham

Pennant Technical training solutions April 2018 Cheltenham Bristol

Reflex Van Hire Light commercial vehicle hire June 2015 Loughborough Nottingham

Castle RVL Specialist aviation services November 2014 Nottingham Donnington

Woodhall Nicholson Specialist vehicles manufacturer December 2016 Westhoughton Manchester

Manufacturers and engineers

European Breaking Systems Air brake and vehicle controls December 2017 Manchester Manchester

IFA Group Aerospace and industrial forgers March 2018 Sheffield Leeds

Paintbox High-tech paint finisher February 2016 Birmingham Birmingham

Prodrive Composites Composites manufacturer July 2015 Milton Keynes Milton Keynes

Sertec Group Stampings manufacturer February 2016 Coleshill Birmingham

VTL Group High-precision components September 2013 Huddersfield Leeds

50 Walker Precision Engineering High-precision component manufacturer December 2017 Glasgow Edinburgh READY FOR BUSINESS - A YEAR IN REVIEW

Collision Management Systems

Founder Charles Smith on how he’s using data to transform fleet insurance

Charles Smith was an undergraduate when So in July 2018, BGF came on board and he had an idea that would see him drop out invested £1.25m to enable CMS to continue of university to start a multi-million-pound to grow. Charles chose BGF because of its business. “I was researching car crashes for my “refreshingly different” approach. “They materials engineering course,” Charles explains. let you get on with running your business,” “It became apparent that telematics providers he explains. “They really bought into our journey didn’t have a clue about what data insurers – and we liked the fact that we could have a really needed – and equally insurers weren’t proper conversation with someone who clear on what data was available.” wanted to go on that journey with us. ” BGF also introduced CMS to non-executive Charles launched Milton Keynes-based Collision director Stephen Lake. “You only grow a Management Systems (CMS) in November business on people and Stephen has helped 2012. His idea was to aggregate data from the us understand how to build a really effective growing number of connected vehicles and team,” says Charles. help logistics and insurance companies better manage the risk of covering remote workers and The investment has helped CMS continue to drivers. By bringing together this complex data, grow and make deals. The business now works his customers can identify employees who are with a host of household names around the accidents waiting to happen. world, including Eddie Stobart, Whirlpool, National Interstate Insurance, Zurich With the help of private angel investors, and Pioneer. Following initial success, BGF CMS received its first funding in May 2013 – will add another milestone to CMS’s journey two months before Charles had been due to by providing further investment of £1.5m graduate. Charles used the capital to develop in Q4 2019. the first iteration of his software. “We spent the first three years just building the product,” “We’re the victim of our own success,” Charles he explains. “Usually tech companies just build explains. “Our rate of growth means we need it and flog it right away. We took more of a to bring more people in faster.” The funds will British engineering approach.” enable CMS to quickly make eight new full-time hires to support its international growth. With On Christmas Eve 2016, Charles got an early its sights set on the US, CMS’ rapid growth Christmas present with his first major client, looks set to continue. “In 2020, we’d like to global insurer Swiss Re. Two months later, achieve at least half a million from the US and Tesco followed suit. “We went from real start-up keep trying to double our overall turnover for bootstrapping to delivering our software on a as long as possible.” global scale,” says Charles. But the company’s rapid growth brought its own challenges. “We were swinging between delivery and sales,” Charles explains. “We just didn’t have the bandwidth to do both.”

53 READY FOR BUSINESS - A YEAR IN REVIEW

Walker Precision Engineering

Mark Walker, managing director, explains how these Glasgow engineers have gone intergalactic

Headquartered in Glasgow, Walker Precision With work in a brand new market gaining Engineering is a contract manufacturer, traction, Walker Precision Engineering started producing complex assemblies for the talking to BGF in 2012. They spent the best aerospace and defence sectors. “We’re one of part of six years getting to know each other the only Scottish manufacturing companies before BGF invested in early 2018 – backing the supplying to all of the UK defence industry’s company with £4m. prime contractors,” says managing director Mark Walker. “Building up trust over those initial years was very important,” says Mark. “BGF’s support The company has become the partner of choice enabled us to invest in specialist machinery, when it comes to high-precision machining, increasing our capacity across our production specialist surface treatment and assembly sites in Glasgow, Basildon and Poland. They also capabilities. But Walker Precision Engineering helped to drive the organisational structure with hasn’t always focused on aerospace and a more formal monthly board meeting.” defence – when it was founded in 1979, it was a much simpler affair. Mark says BGF has been fantastic to work with and has given the company a level of “The company was founded by my late father confidence when it comes to calculated risk. who started out with a couple of manual milling “I have a lot of respect for the team – I would and grinding machines,” says Mark. “He soon give any one of them a job and Chris Melrose, moved into supplying fixtures and tooling for our non-exec director that BGF helped to the electronics industry – working for clients place, is a fantastic sounding board. He keeps like IBM.” us focused.”

In the mid-nineties, the company became The company is going from strength to strength. a specialist in radio frequency equipment, Turnover has grown from £14m in 2017 to just supplying all of the test equipment for shy of £20m this year – with a view to hitting Motorola’s analogue mobile phones. But when the £50m mark in the next five years. Mark the mobile phone giant lost its competitive also expects to increase work with another advantage it transferred work from the UK burgeoning sector. to China. “We’re starting to do even more with the “At that time Motorola had been roughly 90% space industry which is great – we’ve recently of our business,” explains Mark. “Through sheer provided all of the metal work for a large perseverance, hard work and good technical constellation of satellites which is aiming to capabilities, we managed to break into the provide better internet connection to people defence market.” in the most remote corners of the earth.”

54 READY FOR BUSINESS - A YEAR IN REVIEW

Business services

Initial Company BGF Company Description investment date location office

Click Travel Corporate travel management company July 2018 Birmingham Birmingham

Elements Talent Solutions Talent acquisition consultancy September 2018 London London

Equilaw Equity release legal adviser February 2019 Gloucester Bristol

HML Property management November 2016 London London

Inspired Energy Energy consultants October 2016 Preston Manchester

Invenio Business Solutions Business-focused technology solutions March 2019 Reading Reading

Design and manufacture of Macfarlanes September 2017 Glasgow Edinburgh packaging products

McMillan Williams Consumer-focused law firm February 2015 London London

Rethink Recruitment specialist April 2015 London London

Global environmental, health, safety RSK December 2016 Cheshire Manchester and engineering services company

SaleCycle Behavioural marketing platform June 2018 Sunderland Newcastle

Setfords Law Ltd Network of lawyers December 2016 Guildford London

56 The Consulting Consortium Regulatory and compliance consultancy March 2014 London London READY FOR BUSINESS - A YEAR IN REVIEW

Click Travel

Creating better business travel for companies big and small with CEO Jill Palmer

Click Travel is on a mission to take the pain out resources and knowhow. For example, we of business travel. What started out as a hotel reached out to them to find out about app booking agency in 1999 has transformed into developers and three different people came an online booking platform looking after every back with suggestions. aspect of business travel, from flights and trains to hotels and meetings. “Along with the addition of our BGF investor, Mark Freer coming onto our board, the team CEO Jill Palmer says the business’s growth has also helped us to find an FD so we could really started to take off when it launched the enhance our finance function – all without the online platform in 2007. “Our philosophy is that need of a recruiter.” customers should be able to use technology to book their business travels themselves, Jill also values the access she has to other supported by 24/7 outstanding customer leaders of portfolio companies. “Networking service. Once the platform was up and running, with other CEOs has been really useful, both in turnover started doubling each year.” terms of knowledge sharing and ideas, as well as an opportunity to introduce more companies The founders of Click Travel, brothers James to what we do (and us to what they do). and Simon McLean, had been speaking to Everybody wins.” BGF for a number of years but it wasn’t until 2018, when the company was focusing on its Going from strength to strength, Jill says Click technology offering, that BGF came onboard Travel is having its best ever year – selling more with backing. new business than ever before and hitting two thirds of its annual target in the first half. “We had crystalised our thinking on investment Looking to the future, she has her sights set on and were interested in someone taking a new markets. “We want to totally explode the minority stake in the business, so BGF ticked SME market, we don’t believe there is a product a lot of boxes,” explains Jill. “We were in the out there that adequately supports small middle of a fundamental rewrite of our tech business travel needs,” she says. architecture and BGF enabled us to complete that and to launch a new software as a service “The other unexplored area for us is selling (SAAS) model, which is a completely new business travel in other markets. We already revenue stream aimed at the SME market.” support our customers wherever they are in the world, so it’s time to take advantage of our Jill says BGF’s support has gone far beyond global footprint.” a cash injection for new technology. “One of the strong things about BGF is the access to

58 READY FOR BUSINESS - A YEAR IN REVIEW

Buildings and property services

Initial Company BGF Company Description Infrastructure, investment date location office Global ATM and branch Cennox June 2012 Camberley London transformation company

Clearway Vacant property services business April 2018 Dartford London construction Extentia Property services business May 2019 Sale Manchester Group of integrated Horbury Group June 2014 Rotherham Manchester construction-based companies

NSS Group Facilities management services company May 2018 Manchester Manchester and property SDL Group Property services group February 2015 Nottingham Nottingham Construction

Aim-listed Accsys Manufacturer of modified wood products March 2017 London London Technologies plc services Apex Airspace Airspace property developer May 2018 London London Braidwater Family-owned housebuilder November 2015 Londonderry Belfast

Campion Homes Housebuilder July 2016 Fife Edinburgh

Northern Escalators Specialist engineering business January 2018 Halifax Leeds

Winterbrook Family-owned housebuilder March 2019 Dublin Dublin

Plant and equipment

Plantforce Heavy equipment rental company July 2018 Bristol Bristol

PPS Equipment Returnable transit equipment services July 2015 Uttoxeter Birmingham

Industrial services

Amazon Filters Filtration equipment manufacturer September 2018 Camberley London

Infrastructure services

Gaist Digital mapping company May 2018 Lancaster Manchester

Flowline Drainage contractor June 2014 Rayleigh London

AIM-listed SigmaRoc plc Construction material firm October 2019 London London

Consultancy

Anstey Horne Chartered surveyors firm March 2016 London London

BB7 Fire safety and security consultancy April 2019 Kent London

Environmental Essentials Asbestos management services December 2015 Stoke-on-Trent Birmingham

Hydrock Engineering design consultancy August 2018 Bristol Bristol

Monodraught Ventilation systems company June 2017 High Wycombe Milton Keynes

60 Visualisation 1 Architectural CGI company July 2018 Chester Manchester READY FOR BUSINESS - A YEAR IN REVIEW

Amazon Filters

MD Neil Pizzey on harnessing outside perspectives to drive growth in a family business

When Mike Pizzey founded fluid filtration the company for over 30 years you can become business Amazon Filters in 1985, it sold quite inward looking. We wanted the discipline industrial filters and associated hardware of committing ourselves to something and made by different suppliers – trading on his felt the best way to do it was to bring in an in-depth knowledge and strong network of external party.” contacts. Thirty-five years later Amazon Filters manufactures all of its own products, from The company met with a whole host of potential the filters themselves to the housings that investors, but Neil says BGF was the obvious they sit in. choice for them. “The concept of patient capital is a powerful one for a business like ours,” he “We have our main manufacturing site in explains. “We wanted the perspective of an Camberley, Surrey and a factory in Poland too,” external partner but we were very wary of an says Mike’s son Neil, now managing director of aggressive third party investor threatening our the family business. “Any industrial user of liquid legacy and values.” or gas is a potential customer, so we work with businesses in anything from food and beverage, Neil says the investment has helped to bring to ink, coatings, paints etc. Anyone that needs discipline to the business, helped by the to clean up a liquid really.” appointment of non-exec chair Paul Barnard. “Our board meetings are different to what they Neil explains that the business has grown were a year ago,” he says. “Because we’re a organically over time, with a healthy export family business it tended to be quite operational business helping to broaden its reach. “We’ve and a bit of a social chat. That’s all changed. And made the most of a large, growing market.” that’s precisely what we wanted.”

The business looked at bringing in a third-party Looking to the future, the company is investor in 2018, not necessarily to fund growth, aiming to grow the company by at least 50% but rather to generate it through external input. in the next three or four years. “A fresh pair “We wanted to re-inspire and reconfigure of eyes has really injected some growth ourselves in terms of growth and ambition,” ambitions and helped us to focus on the future says Neil. “When you’re working insularly within of the company.”

62 READY FOR BUSINESS - A YEAR IN REVIEW

Gaist

CEO Steve Birdsall on putting innovative digital surveys on the map

Steve Birdsall started down the road that led to Gaist grew organically from there, until it founding digital mapping company Gaist when reached a point when Steve and the team knew he trained to be a surveyor as a young soldier they needed investment to achieve the growth working with the Royal Artillery in the British they wanted. Following an introduction by Gaist Army. “Surveying became a theme in my life chair Craig Slater, BGF backed the company from that moment on,” says the entrepreneur. with £2.7m in 2018, enabling it to meet the rapidly growing demand – bringing in more He left the service after eight years, taking a job people and buying specialist equipment. “We surveying for off-shore oil companies before also moved into a new premises and invested a slump in the oil market pushed him towards into R&D in artificial intelligence which is the railways. He managed a massive survey of starting to bring our costs down significantly all the railway tracks in Britain following the and provide new innovative services.” Hatfield rail disaster. From there, he moved onto employing new technologies onto roads, “One of the things we’ve really appreciated joining highway surveying company DCL as its about BGF is the fact that they let us get on with operations director. running the company how we think it should be done,” says Steve. “They have helped us to think “I found that the way the highway industry clearly about certain things, offered guidance was surveying roads wasn’t very innovative,” and challenged when necessary – but we’re says Steve. “The data wasn’t easy to interpret pleased to see that they trust us to get on and didn’t really give our customers what with it.” they needed in terms of understanding the maintenance need of their roads – essentially The company now works closely with the what to fix and when.” Department for Transport on certain projects – one of which, called BridgeCat, is a mobile Steve founded Gaist in 2008 to fill that gap, bridge inspection system which uses a sonar using the latest technology to give customers system to inspect the foundations of bridges. a clear picture of road conditions around the Gaist is also working on a project to check the country. Realising early on that innovation would condition of road markings across the country. play a large part in their success, the team worked with Innovate UK to set up Knowledge “Driverless cars rely on these road markings Transfer Partnerships with the University of so we’re ensuring the roads are up to a standard York, an agreement which saw the company where this kind of technology can be trialled working closely with the university to develop and rolled out,” says Steve. “We’re looking technology over a six year period. forward to more projects like these in the future – driven by plenty of R&D.” “We developed cutting-edge analytics and computer vision systems,” explains Steve. Gaist is still growing rapidly and is now “It was the foundation of an innovative culture developing business outside the UK in Japan, in the company – the postdoc graduate that Africa and the Middle East. worked with us at that time is now our director of innovation and research.”

65 READY FOR BUSINESS - A YEAR IN REVIEW

Plantforce

Managing director Claire Trott is driving construction forward with pioneering machinery and service

Claire Trott started her plant-hire business With so much growth taking place, Claire in 1999 with just three machines and a lot decided the business needed external backing. of ambition. “Back then I had two excellent “We had been working on the HPC project since job opportunities from successful plant hire 2010, but it really started to ramp up around companies, but I didn’t want to go into a 2016. We could see mid-term projects growing, corporate environment,” explains the managing and we were looking to future projects like director of Plantforce, which now employs HS2 too, so we knew we needed investment 380 people from four depots across the South- and a partner going forward to help us – not West and Midlands. “I wanted to create my just financially, but to provide support and own company and focus on building something knowledge.” from scratch.” After meeting with BGF, Claire was immediately Believing strongly that “a healthy work culture put at ease, “they were approachable and fosters great team work”, Claire’s first move proactive,” and in August 2018 Plantforce was to create a collaborative environment received a £4.7m investment. With the funding where people could learn and feel supported, in place, Plantforce has successfully expanded challenged and rewarded. With the team into the compact machinery market and in place, together they grew the company acquired a major new contract following the organically, focussing on technical innovation collapse of a competitor in January this year. and providing excellent customer service – one of Plantforce’s key USPs. “Because we had the funding in place, we were able to negotiate with the administrators and By 2009, the business had expanded to 500 the client, and take on all the equipment and machines and outgrown its depot in Yatton, operators within a week. We were ready when Somerset, so the team moved to a new depot the opportunity presented itself.” just outside Bristol. From there they continued to focus on providing technical innovation and As well as helping the business expand into new quality service to the construction and energy markets, Claire says the partnership with BGF industries, while opening three new depots in has helped them develop a clearer corporate Exeter, Bridgewater and Birmingham, with the structure. “We have structured board meetings latter two specifically aimed at servicing Hinkley now with a non-executive chair and Paul Point C (HPC) and High Speed 2 (HS2). Oldham, who’s a non-executive director from BGF, who’s been very helpful. We have a new commercial and financial perspective on things, which is great.”

67 READY FOR BUSINESS - A YEAR IN REVIEW

TCL Group

Nurturing growth for landscape services with executive chairman, Simon Cashmore

When Simon Cashmore acquired a small with BGF,” says Simon. “We bought businesses landscape services business in 2007, he had no to extend our geography, access new previous experience of working with gardens, customers and add new services to our offering. parks or public spaces. But the opportunity We branched into children’s playground to grow an interesting, regional business had installation, for example, which has proven to caught his attention. “TCL was partly owned be a lucrative and interesting market.” by the guy who had founded it in the eighties,” explains Simon. “He had grown a good, Beyond the cash injection, Simon was keen small services business, and I thought I could to use BGF’s capabilities in as many ways as replicate what he had done regionally over a possible. “BGF’s extended team specialists gave broader geography.” us access to services we wouldn’t have been able to afford as a small business,” he says. “We In the following years, Simon and his team worked with its IT team to look at transforming grew the business from £5m turnover to around our tech capabilities and we also worked with £25m. But this was not without its challenges: BGF on our brand.” “The recession hit us quite hard. When we bought the business it was 96% aligned to In five years, the business grew from £25m the PLC housebuilding sector which was turnover to more than £70m and moved its significantly impacted by the financial crisis.” EBITDA from £2.5m to over £8m. Towards the end of 2018, French-based green services Despite the less than perfect circumstances, business, idverde, made an offer for TCL and in the business emerged stronger than before and October 2019 the two companies were brought in 2013, Simon met with BGF to discuss how it together, with BGF exiting its investment. could help the business get to the next level. “I was quite taken by the BGF story,” says “We’ve created a UK market leader by bringing Simon. “I met with BGF investor Mark Freer, these two companies together,” says Simon. who I got on well with, and I liked what BGF “There will be an initial shot in the arm in terms was set up to do – help businesses like ours go of cost synergy – improving the profitability from the S to the M of SME.” of the combined entity. Longer-term, we’ll be able to provide an even more broad range of In 2014, BGF invested £10m into TCL. Initially, services to clients and take our UK-only services the job was to pay back a family office investor across the channel to mainland Europe for the and the bank but soon, attention turned first time.” towards growth. “We made seven acquisitions

68 READY FOR BUSINESS - A YEAR IN REVIEW

Energy, oil and gas

Initial Company BGF Company Description investment date location office

3Sun Group Engineering and consultancy February 2014 Great Yarmouth London

Aubin Chemical solutions February 2013 Aberdeen Aberdeen

Cornwall Insight Energy market consultancy November 2017 Norwich London

Ecovision Renewable energy provider August 2014 Cirencester Bristol

Europa Exploration and production November 2018 London London

FrontRow Developer of energy service companies January 2017 Aberdeen Aberdeen

Expertise, knowledge and support Getech May 2018 Leeds Leeds to natural resources sector

Magma Manufacturer of subsea equipment December 2012 Portsmouth Reading

Next-generation meters for the M-Flow December 2012 Abingdon Reading oil and gas sector

Software developer for Petrotechnics May 2013 Aberdeen Aberdeen hazardous industries

Walton-on- Plexus Specialist wellhead products June 2016 London Thames

Supplier of remotely operated ROVOP April 2015 Aberdeen Aberdeen vehicles for the offshore centre

Offshore engineering services SPEX Services February 2014 Aberdeen Aberdeen for the oil and gas industry

STATS Isolation services for oil and gas pipelines March 2012 Aberdeen Aberdeen

Task Geoscience Group Global geoscience consultancy April 2014 Aberdeen Aberdeen

Tekmar Offshore cable protection June 2019 Newton Aycliffe Leeds

70 Wellcentric Well integrity solutions November 2018 Aberdeen Aberdeen READY FOR BUSINESS - A YEAR IN REVIEW

Aubin Group

Driving chemical innovation in the energy industry, with CEO Katy Gifford

Aubin Group was founded in 1986 to design, changing diameters. It also offers products for develop and manufacture chemicals for the decommissioning old or expired offshore and oil and gas industry. In the early days its work onshore structures – making the process low- concentrated predominantly on additives to risk, cost-effective and environmentally safe. improve cementing work in wells but a change in leadership in 2005 meant the company Having recently suffered from what Katy started to look at other industry challenges describes as the ‘longest and most severe it could solve. downturn in the oil and gas industry,’ Aubin Group is once again setting its sights on “The plan was to introduce more innovative growth. “We’re positioning ourselves to go solutions,” explains chief executive Katy Gifford. further, the pipelines portfolio has been very “The business knew it would need some capital successful recently and we’ve also been to create some truly unique products and so getting more industry interest in some of started talking to BGF.” our new technology.”

BGF backed Aubin Group with £2.25m in 2013, Aubin Group is now looking to solve enabling the business to invest in R&D and even more challenges. “We are starting to commercialise its new ideas. The money was investigate some other industries, but we are also used to establish an office in the Middle mostly focused on the oil and gas industry East. “That was a customer request,” explains where we have a wealth of experience,” Katy. “The company has long been sending she explains. products to the Middle East and customers there increasingly wanted to see someone Katy says BGF’s support has been on the ground.” instrumental in the growth of the business. “They’ve been very easy to work with. I joined With access to its own lab and team of the business about a year after they started chemists, Aubin Group now offers a full suite working with us and they’ve been light touch of unique solutions for the oil and gas industry. and incredibly supportive.” One such product is a gel which is used to treat pipes that would otherwise be impossible to clean – working around sharp bends or

72 READY FOR BUSINESS - A YEAR IN REVIEW

Food and drink

Initial Company BGF Company Description investment date location office

APS Group Tomato grower December 2017 Cheshire Manchester

St Pierre Group Supplier of bakery goods November 2018 Manchester Manchester

Chase Distillery Single-estate distillery September 2017 Hereford Birmingham

Cooplands Retail bakery December 2017 Scarborough Leeds

DB Foods Meat wholesaler December 2017 Poole Reading

Gousto Recipe box delivery November 2015 London London

Joe's Gourmet Foods Gourmet popcorn brand March 2019 Watford London

Muscle Food Healthy food delivery December 2017 Nottingham Reading

Purity Brewing Craft brewery July 2018 Great Alne Birmingham

74 Waterford Distillary Pioneering whisky project April 2017 Waterford Edinburgh READY FOR BUSINESS - A YEAR IN REVIEW

Purity Brewing

How CEO Paul Halsey and his team have created award-winning brewing with a conscience

When Paul Halsey and James Minkin co- “We were at maximum capacity in the brewery, founded Purity Brewing in 2005, the idea and we knew this was the moment to either of craft beer barely existed. “We wanted to invest in a new brewery or maximise our modernise cask beer,” explains CEO Paul Halsey. margins and enjoy a good lifestyle business – “We wanted to create beer that was a modern we chose to invest.” interpretation of beer.” Reluctant to take on outside investment, for fear By “modern interpretation” the founders of losing equity and control of the business, Paul meant consistent quality and a sustainable financed the build of a new, state-of-the-art approach to brewing – approaches that may brewery through cashflow and a bank grant – be commonplace today – but were trailblazing with the cost coming in at around £2m over the back then. “It was really important that course of two years. we found a location that was farm-based, we needed a farmer who was looking for a A few years later, with the new brewery up and diversification project,” explains Paul. running and business booming, the time came for more funding. This time, Paul did consider After a year of searching, they found the person outside investment. they needed and built the brewery in Great Alne, Warwickshire – now they just needed “I didn’t think that private equity was right for to sell their creations. “The first year turned the business, but after meeting with the team out to be slower than we expected. I thought I at BGF, I saw a different side to it,” explains could rely on my reputation in the industry but, the entrepreneur. “They were offering patient actually, the beer needed to prove itself.” capital and a very light touch – that just floated my boat!” To up their game, they brought in Flo Vialan, a highly experienced brewer who’s still with the Since receiving the £7.5m investment from business today. Flo’s expertise raised both the BGF in August 2018, Paul has “upweighted quality of the beer and its consistency, and by the board” considerably – which has been year three, sales were booming. By year five, great for business. “I’ve now got much better Purity Brewing had released three beers, won support around me, and I’ve had some really several awards, and was producing 16,000 good introductions into other BGF-invested hectolitres of beer annually. businesses too. I’m very entrepreneurial and creative, so I was nervous of them subduing that side of my business, but it’s been the complete opposite.”

76 READY FOR BUSINESS - A YEAR IN REVIEW

Health care and education

Initial Company BGF Company Description investment date location office

Brindley Healthcare Nursing home group December 2018 County Donegal Dublin

Caresourcer Connecting care seekers with providers May 2017 Edinburgh London

CHS Healthcare Specialist services for the NHS January 2018 Sutton Coldfield Birmingham

Doctor Care Anywhere Online GP service August 2017 London London

Dolphin Homes Specialist care provider June 2017 Portsmouth Reading

Evo Dental Full jaw implant solutions October 2017 London London

Firefly Education technology company November 2016 London London

Inspiration Healthcare Medical technology products September 2019 Crawley London

Kids Planet Children's nurseries August 2016 Cheshire Manchester

Medigold Health Occupational health company October 2017 Northampton Milton Keynes

Operam Education Education recruitment specialist February 2019 Barnsley Leeds

Orbital Education Premium international schools September 2019 Manchester Manchester

Parklands Group Independent care home provider November 2018 Buckie Aberdeen

Pharmacy2U Internet pharmacy March 2018 Leeds Leeds

Renal Services Dialysis services provider November 2014 London London

Springfield Operator of care homes and villages June 2012 Leeds Leeds

Design and manufacture of Surgical Innovations May 2018 Leeds Leeds surgical instruments 78 READY FOR BUSINESS - A YEAR IN REVIEW

Kids Planet

Founder Clare Roberts on empowering parents with flexible childcare

When Clare Roberts, founder of nurseries group With success under its belt, Kids Planet Kids Planet, had her first child, she spotted approached BGF to fast-track its development. a gap in the market. “When I was looking for BGF invested £10m of growth capital in August childcare, I noticed all the nurseries opened at 2016 and followed this up with £6.5m of further 8am and closed at 6pm,” explains Clare. “I was funding in June 2019. going to work early and coming home late every evening. I didn’t know how I was going to “When BGF invested we had 17 nurseries,” make it work.” Clare explains. “Now, nearly three years later, we have 42 – and we’ll soon have 44. Our aim Clare and her father decided to go into business is to get to 50 in the next two years.” and launched Kids Planet in 2008 to provide flexible childcare for working parents. Kids The funding has also enabled Kids Planet to Planet’s model centres around early-years launch its own training academy in February care based on creative play, nutritional meals 2018. Beyond growth capital, BGF also and educational support. The group provides introduced Kids Planet to non-executive nursery care to over 5,000 children and directors Pinesh Mehta and Mark McMenemy. currently has ‘Outstanding’ Ofsted ratings in Mark’s experience in site roll-outs has helped over 95% of its sites. accelerate Kids Planet’s rapid expansion plans.

Before starting the business, Clare completed “Having a partner like BGF which understands an NVQ Level 3 in childcare and returned to both the personalities in the business but also university to get her early years professional the strategy has been great,” Clare explains. qualifications. She then began to acquire sites “When you’ve been in a family-run business, across the North West of England. By the end of the last thing you want is to feel like you’re no year one, Kids Planet had four nurseries. longer in control of your company. By year eight, they had 17. “Working with BGF, we’ve never had to The secret to Kids Planet’s rapid growth, Clare compromise on quality, and in childcare that is explains, has been a mixture of acquisition and really important as people are looking to you start-up. “Of our 42 nurseries, about a third to provide a service for their most important, have been converted from existing buildings or precious thing – their child.” built from scratch. Because we’ve had a flexible approach in terms of how we’ve grown, we’ve given ourselves the ability to grow at quite a rapid rate.”

80 READY FOR BUSINESS - A YEAR IN REVIEW

Pharmacy2U

Led by Mark Livingstone, this online pharmacy is transforming access to essential medication

When Mark Livingstone, chief executive of Having raised £10m to fund the merger in Birmingham-based online pharmacy Chemists July 2016, the new entity, called Pharmacy2U, Direct, came across Pharmacy2U in 2015, he went on to raise a further £7m in May 2017, spotted an opportunity. “It became very evident led again by BGF. Mark felt BGF was really that what we were doing in general healthcare, supportive and unlike the investors he’d Pharmacy2U was doing in repeat prescriptions,” worked with before. he explains. “We thought that it was really complementary.” “If I had a penny for every investment company that told me, ‘It’s all about the Mark decided to raise the money needed to management team and we are there for you complete a merger with Pharmacy2U, that’s and we will let you run your ship,’ I would be when he met with BGF who backed the deal a very rich man,” he says. “BGF is one of the with £10m investment. “We brought the two very few companies who really delivers that. companies together and, since then, have They’re human and very pragmatic to deal doubled the size of the business and look with. We’ve got a really good relationship.” forward to tripling the size of the core business in the next 12 months,” he says. Looking to the future, Mark is confident that Pharmacy2U can continue to flourish in With some 15 years’ experience in building partnership with BGF. “It’s an £8bn market in companies with the help of venture capital, England alone and we are growing at over 100 Mark knew that the merger would be complex per cent per annum. We’re still under £100m and was keen to work with a more local investor worth of revenue, which makes our market who would be involved in the management: share around 1.25 per cent. We see no reason “It was the most complicated deal I had ever why we can’t get to 10 per cent in the next transacted and I needed someone who was very five years.” pragmatic, reasonable, helpful and engaged.”

83 READY FOR BUSINESS - A YEAR IN REVIEW

Renal Services

We’re powering dialysis delivery in the NHS, says CEO Stefano Ciampolini

When Renal Services launched in 2007, Like many businesses, Renal Services suffered it offered the NHS an alternative when it a slowdown during the financial crisis, but in came to dialysis. Prior to this, the NHS used 2014, it won two new contracts and started vertically-integrated product companies to looking for a partner to help deliver them. “I deliver the treatment, which acted as both the met with BGF and they decided to invest, which manufacturer and service provider – offering no enabled us to build three new clinics and furnish real choice. As an independent provider, Renal them with the equipment and working capital Services is unbiased in its choice of products – required to operate,” explains Stefano. “It also offering a much wider selection of equipment, helped to buy out a handful of investors that had medical devices and drugs. been with us from the beginning.”

“We’re able to make decisions based on what is As well as investing £3.1m in growth capital, best for the patients and the clinicians delivering BGF also introduced healthcare veteran the treatment,” says founder and CEO Stefano James Buckley who the business appointed Ciampolini. “When we launched, we had to as chairman. “Partnering with BGF marked the work hard to convince the NHS that we were point at which Renal Services became a grown- credible and reliable in delivering this life-saving up company,” explains Stefano. “James was treatment, but we initially got two NHS Trusts instrumental in installing more sophisticated to buy into what we were doing and grew governance, running the board in a more from there.” professional manner and making us more investable.” Stefano believes this independence, along with the real-life experience of his team, gives Renal Following BGF’s investment, Renal Services Services the edge: “Unlike our competitors, has grown its footprint from six clinics to an we’re a company run by nurses,” he explains. expected 23 by the end of 2019. “We’re now “I am the only executive in the business who four or five times the size we were prior to BGF isn’t a senior nurse, so when we speak to new investing in the company and having BGF on prospects in the NHS we’re able to speak board has helped us to get debt finance from their language.” banks, which we could get very little of before.”

84 READY FOR BUSINESS - A YEAR IN REVIEW

The Good Care Group

CEO Fiona Lowry on empowering people with quality care in the home

Watching her grandmother suffer from in 1997 and co-founding Oracle Care in 2005 dementia inspired serial entrepreneur Fiona to provide support to children with complex Lowry to start The Good Care Group in 2009. needs, Fiona had a wealth of experience in “My grandmother declined rapidly when she building a business. She made one acquisition went into a care home,” explains Fiona. “When before meeting with BGF to discuss how it could it came to my father, I realised he had only support her growth plans. ever lived in two houses. I hated the thought of putting him into an institution, however nice it BGF invested £2.5m in The Good Care Group was. I wanted him to be able to stay at home in 2016 to fund investment in marketing and with his dignity and independence.” technology and explore the acquisition pipeline. “We did a major investment in digitalising all our The Good Care Group offers a professional care processes,” Fiona explains. “This enabled live-in care service which enables people to us to monitor care plans and interventions more stay in their homes for as long as they want thoroughly, such as proactive UTI testing and and avoid moving into a residential care home. management. Overall the technology helped us Regulated and approved by the Care Quality to improve our service.” Commission (CQC) with an “outstanding” rating, The Good Care Group provides full-time Fiona says the collegiate relationship with and respite care and employs more than 1,000 BGF makes it a unique one for a growing professional carers who receive market-leading business. “I’ve worked with other private equity training to ensure the highest standards of care. companies, so I know BGF is great to work with. The team is very warm – they are responsive, To help her grow the business, Fiona focused on flexible and supportive.” finding the right people, starting with her team and then looking at investors. Having previously spun-out Merlin Communications from the BBC

87 READY FOR BUSINESS - A YEAR IN REVIEW

IT and comms

Initial Company BGF Company Description investment date location office

1Spatial Geospatial data management June 2019 Cambridge Milton Keynes

AIM-listed Adept Telecom Unified communications provider September 2016 Tunbridge Wells London

AIM-listed Adept4 IT-as-a-service company May 2016 Cheshire Manchester

Appnovation Technologies Full-service digital consultancy July 2019 Reading Reading

BigBlu Broadband Satellite broadband provider April 2016 Bicester Reading

Broadband Satellite Services Satellite communications provider July 2015 North Shields Newcastle

AIM-listed Castleton Technology Software and managed services provider January 2016 Sutton Coldfield Birmingham

DevOpsGroup IT consultancy firm April 2018 Cardiff Cardiff

Getbusy Document management solutions May 2018 Cambridge Milton Keynes

Helecloud AWS cloud-based services provider October 2018 Maindenhead Reading

Inoapps IT consultancy firm August 2013 Aberdeen Aberdeen

Miss Group Web hosting company July 2018 Manchester Manchester

Mono Network support services provider February 2014 Glasgow Edinburgh

Customer engagement Hemel Aim-listed Netcall August 2017 Milton Keynes software company Hempstead

Olive Communication IT infrastructure provider January 2016 High Wycombe Milton Keynes

Planixs FinTech company February 2019 Manchester Manchester

IT consultancy and project PTS Consulting October 2013 London London management firm

Record Sure Recording and analysis solutions March 2014 London London

ROC IT services provider September 2017 Newbury Reading

Semafone Fraud prevention software company September 2014 Surrey London

TIG Cloud managed service provider July 2018 Watford Milton Keynes

UKCloud Cloud infrastructure provider August 2015 Farnborough Reading

Virtual1 Cloud and connectivity service provider December 2016 London London

88 Vysiion Communications and IT service provider March 2015 Chippenham Reading READY FOR BUSINESS - A YEAR IN REVIEW

TIG

Founder Des Lekerman on helping SMEs to harness the power of technology

When entrepreneur Des Lekerman sold “But more than just cash we also wanted to the IT business he had founded and run for bring in some firepower to support across the almost 22 years, it freed him up to look at new next phase of growth.” opportunities. Having spent a couple of decades helping large businesses with their BGF backed TIG with £6m in January 2019 technology strategy, he was keen to do which enabled the company to acquire something similar for the SME market. netConsult – an IT consultancy specialising in financial services. “Its focus on the alternative “I came across a company called The Internet investment market, hedge funds and private Group which I realised could be a platform equity houses gave us access to an exciting to launch a new IT services company,” sector and we really liked the business – five explains Des. “I bought the company in 2013, months after BGF’s investment we finalised restructured it to serve this new market and it the acquisition.” grew steadily from there.” The deal with BGF also brought further support Now known as TIG Data Intelligence, the for TIG’s board, with BGF investor Mark Nunny business works with specialist companies to joining as non-executive director. “He has a lot improve their IT systems, ensuring they use of experience and he is a great sounding board technology as a strategic asset rather than for us,” says Des. “He’s always on the end of background support. “We’re using technology the phone when we need him and often thinks to help clients enhance and accelerate their of things that we wouldn’t have so there’s huge businesses,” says Des. value in that.”

After a number of years of solid growth, TIG Beyond capital and expertise, BGF has also started to consider the prospect of acquisition. enabled TIG with some valuable connections. “The technology services sector is quite “Mark is a real advocate of our work and makes fragmented,” explains Des. “There are a lot of sure that other portfolio companies know the small, privately-owned service providers across services we offer. This has meant a number of the UK and we decided that an acquisition new business deals for us since January. We would help us to build on our offering and bring have even migrated BGF to Microsoft Cloud even more expertise into the business.” and are supporting the business with designing and delivering ongoing digital transformation TIG explored the private equity market to find enhance the growth of data.” an investor to help fund an acquisition. Having met with quite a few, Des and the team felt Looking to the future, Des is ambitious about BGF’s offer was different to the others and best future growth: “There’s a big market out there suited to their needs. “As a privately-owned and for what we do and the opportunities are run business, we wanted to remain in control so endless – I believe every company should be BGF’s minority investment offered the flexibility its own digital disruptor.” that we were looking for,” says Des.

90 READY FOR BUSINESS - A YEAR IN REVIEW

Planixs

Co-founder Neville Roberts on helping financial services to track liquidity in real time

When Neville Roberts co-founded his enterprise Despite the competition, Planixs secured its first software company, Planixs, he had no idea it financial services client, Barclays Bank, in 2014. would go on to help the world’s largest financial Armed with a major client, and with the market institutions operate. As the former CIO of Best finally responding to the regulations, Planixs’ Buy, he recognised the latent potential of real- sales pipeline started growing. time analytics early on and was eager to apply it to new industries. “It was time to invest,” recalls Neville. “If we wanted to maintain our position, we needed to “Retail was moving into real time, so I started raise money to complete the rest of the product looking at these new technologies,” explains suite quickly and grow a global sales and Neville, who started Planixs with Stuart marketing team.” Houghton in 2011 using personal funds. “But our first solution – which is still in use – helped After looking at 20 investment opportunities, companies optimise their resource base, it Planixs selected BGF and secured an initial wasn’t for finance.” £3.5m minority equity investment in February 2019. “We chose BGF because they met all After two years of operating, Neville met with our criteria, which included being a hands-off a banker and discovered how the financial investor,” recalls Neville. “They said right from crisis of 2008 occurred, in part, due to banks the start that they would let us run the not having a real-time view of their liquidity. business – and they have.” And that as a result, industry regulations now required financial institutions to know exactly Representing BGF on the board is former food what their liquidity was across their entire asset and agriculture investor, Spencer Woods. base at any given time. “Spencer really understands how companies can use investment to grow – and that’s been “After the meeting, we realised the platform very useful so far,” says Neville. we’d built was a very good match to build a solution to meet these requirements – it was As for the future, Neville believes there are big very exciting.” things to come: “We want to continue to lead the market, dominate and win our fair share – But entering the sector proved even tougher which is all of it!” than expected. “It’s very competitive and hard to be a small player in a big pond with some very big players. Plus, the market was slow to react to the regulations, so everything took longer than we anticipated.”

93 READY FOR BUSINESS - A YEAR IN REVIEW

Leisure, hospitality and travel

Initial Company BGF Company Description investment date location office

Barburrito Mexican restaurant chain March 2012 Manchester Manchester

Bob & Berts Independent coffee shop chain August 2017 Port Stewart Belfast

Boost Juice Bars and Juice and milkshake bars chains December 2012 Manchester Manchester the Shake Lab

Camino Spanish tapas bars chain December 2012 London London

The Coaching Inn Group Coaching inns operator March 2015 Lincolnshire Nottingham

Coppergreen UK holiday park operator November 2016 Sheffield Leeds

Crepeaffair Multi-site creperie brand December 2017 London London

Entier Catering company July 2017 Westhill Aberdeen

Giggling Squid Thai restaurant chain November 2015 Guildford London

Gymbox Gym chain July 2014 London London

Mission Mars Multi-concept operator July 2018 Manchester Manchester

The Plum Guide Online platform for holiday homes November 2017 London London

AIM-listed Safestay Hostel accommodation provider September 2016 London London

Triptease Hotel booking platform March 2017 London London

94 Xercise4Less Budget gym group August 2013 Leeds Leeds READY FOR BUSINESS - A YEAR IN REVIEW

Bob & Berts

Creating an all-day café culture with founder Colin McClean

Colin McClean founded the Bob & Berts coffee After working on the business model and chain in 2013 with a very clear goal in mind: putting together a robust growth strategy that “I wanted to create a brand that would operate would suit a partner, Colin and David spoke to throughout the day, from morning to evening, several investors, but it was BGF who stood by having a menu that served fresh food cooked out most. “We felt like they understood our on site to order.” brand and what we wanted to do. We wanted to grow the business our way and they had the This fresh food offering would be the brand’s confidence in us to let us do that,” says David. key point of difference with established multinational coffee chains. The strategy Six months later the deal was agreed, with worked: within five months of opening the first BGF investing £2m into the brand and helping shop in Portstewart, County Londonderry, Colin the founders appoint the industry expert, opened a second site five miles down the road Mohan Mansigani, as non-executive chair. Bob & and a third site four months after that. Berts has since opened three stores in Scotland – “faster than we would have done otherwise” Within a year the business had grown to four – updated the kitchen equipment across all coffee shops, and in February 2015 Colin’s 20 sites, brought in more area managers and brother-in-law David Ferguson joined as co- improved the organisation’s efficiency and founder. Together the pair continued to grow structure overall. the business, expanding across Northern Ireland to Stranmillis, Lisburn, Omagh and Dungannon. “It’s allowed us to do a wide range of things, but most importantly, it’s allowed us to open “By 2017 we were up to 18 stores, and that’s new sites and invest in the people and systems when a friend of ours approached us and asked behind them,” says Colin. what our aspirations were for the business,” explains David, who worked in finance Working with their new chair, Mohan, has previously. “It was through those discussions been great for business too. “Mohan’s been that we began talking to BGF.” very helpful and opened new doors for us. And having a board with monthly meetings has helped us to formalise the business and improve our financial reporting – so we now have much more visibility across everything we do.”

96 READY FOR BUSINESS - A YEAR IN REVIEW

Coppergreen Developments

CEO David Copley on reinventing holiday parks for modern families

Coppergreen Developments started out as After speaking to several funders David was just a few acres of land in North Yorkshire. “It introduced to BGF, who agreed to invest £11m as began very small,” recalls the company CEO, part of a joint package with HSBC that included David Copley. “Myself and my business partners a £14m debt facility. “BGF was the best funder Donna Copley and Richard Sidi bought the land we came across in terms of appetite to do just outside Thirsk and got planning permission the deals, and also in terms of the equity they for twenty lodges. We called it Woodland wanted in the business,” adds David. “And the Lakes Lodges.” process was very straightforward.”

This was November 2007. Back then, David A couple of years later, with Coppergreen and his colleagues also ran several successful Developments now running two successful caravan/lodge parks under a company called holiday parks, it was time to expand again. Darinian. “The plan for Coppergreen was very This time BGF invested a further £10m of growth different to Darinian,” explains David. “We were capital, alongside £15.3m from HSBC. The trying to move upmarket by aiming for a more finance enabled Coppergreen Developments to luxury lodge business. Also, following the crash acquire – and subsequently expand – Kenwick in 2008, actual caravan/lodge sales became Park Golf Hotel and Spa, and also purchase more difficult. We moved into the rental market some land the founders owned privately in with Coppergreen and saw a great opportunity Nottinghamshire. This land was then developed for doing rentals on the site in North Yorkshire.” into Coppergreen’s fourth leisure resort, Clumber Park, which opened in the summer By 2016, Woodland Lakes Lodges had of 2019. expanded to 50 properties available to rent year-round, with the business growing As well as helping fund the expansions, organically through personal investments BGF’s Barry Jackson joined as a non-executive made by the founders. And then a phone call director following the first funding round in to a friend changed everything. 2016 – a move that continues to work well for the team. “Having dealt with a number of “A guy I knew owned a site in Scotland called investors over the years, I would say that BGF Piperdam Leisure Resort, and just mentioned to has probably been the best investor we’ve ever me one day that he was thinking of retiring and dealt with,” adds David. “And Barry has been selling the park. I knew straight away that if we very helpful, working positively with the team could raise the funds I wanted to buy the park.” all the way through.”

99 READY FOR BUSINESS - A YEAR IN REVIEW

Entier

Creating quality catering for oil and gas workers with founder Peter Bruce

Peter Bruce was in his favourite restaurant in Investment from BGF enabled Entier to expand Aberdeen when he decided to take the plunge internationally – it now has offices in Perth and start his own business. Having spent 11 (Australia), Houston, Trinidad and Saudi Arabia. years as managing director at catering giant “We won the Queen’s Award for International Compass, he felt it was time to move on. Trade in 2016 and meeting the Queen was one of the greatest honours of my life,” he “At Compass I had always been encouraged to says. “International growth requires a lot of be entrepreneurial,” explains Peter. “I mentioned cash because you have different banking my plan to start my own company to the arrangements to the UK so BGF’s investment restaurant owner, a friend of mine, and he said was a huge help.” he’d be interested in joining me. A few days later we took the plunge and Entier was born.” The company now has four different brands within it: RSG – which delivers quality catering Peter saw a gap in the market for a catering to remote places such as offshore platforms, business with a laser focus on quality. The Fresh – which looks after the catering needs of founders decided to start by supplying the oil onshore companies, Wild Thyme – an events and gas industry – offshore and onshore. catering arm and Entier Technical Services which looks after equipment maintenance. “It was 2008 so right at the start of the financial Peter sees growth opportunities across all of crisis,” explains Peter. “We had to put a lot of these branches. our own cash into the business because the deals we had lined up with the banks fell “After a number of rocky years we’re seeing through as they started to reduce lending. an upturn in the oil and gas industry and we’re It was a nerve-wracking time but we believed gearing up for growth once again,” he says. in what we were doing.” “BGF has been supportive throughout. It says it backs people through good times and Three years into the business BGF Aberdeen’s challenging times – we have certainly seen this Mike Sibson paid Peter a visit – the start of a – it offers support through thick and thin, not long “courtship” which resulted in BGF’s £6.5m for a limited time.” investment seven years later. “We weren’t even making money at that point but Mike and the team saw something they liked and we stayed in touch,” says Peter. “When the deal came about we had just completed the acquisition of events company Wild Thyme and we were seeking further growth.”

100 READY FOR BUSINESS - A YEAR IN REVIEW

Life sciences

Initial Company BGF Company Description investment date location office

Pharmaceutical research and Arcinova June 2018 Alnwick Newcastle development company

Biocity Life science incubator January 2019 Nottingham Nottingham

Fluidic Analytics Protein analysis tools developer November 2018 Cambridge London

Ergomed Clinical research pharmacovigilance May 2016 Guildford London

AIM-listed genedrive Molecular diagnostics company December 2018 Manchester Manchester

Ixico Neuroscience expertise to global pharma June 2019 London London

PredictImmune Prognostic tools developer July 2019 Cambridge London

102 AIM-listed Yourgene Diagnostic product developer April 2019 London London READY FOR BUSINESS - A YEAR IN REVIEW

Fluidic Analytics

Pioneering new technologies for medical research with CEO Dr Andrew Lynn

Fluidic Analytics began life in a closet – albeit “Our newest product is the Fluidity One-W, a rather prestigious one at The University of which can assess protein interactions in much Cambridge. “We started out as a couple of greater detail than with other techniques,” scientists in a closet, inspired by the roles that explains Andrew. “It launches officially in proteins play in the biological world,” explains November 2019 – but has already been used by CEO Andrew Lynn, who first met Fluidic’s our partners to do some eye-catching research founder, Professor Tuomas Knowles in 2014. that shows how different drugs interact with their targets to treat Alzheimer’s disease.” In these early years, the company consisted of three scientists working together to develop To bring Fluidity One-W to market, Fluidic better ways to characterise proteins. “Genetic secured a £24m funding package in November screening is transforming our understanding of 2018, of which £5m of growth capital came from what might happen in our bodies over decades BGF. As a result, the company has grown from and lifetimes,” adds Andrew. “But our way of 25 to 75 people, and is poised to introduce characterising proteins has the potential to more products. tell us what is actually happening at any given moment in time. This could be crucial in helping “We’re now set up nicely to launch a new doctors more accurately identify the right product every 12 to 18 months into the treatments for the right patients at the research tool space, and eventually move right time.” into diagnostics,” says Andrew. “Without the financing, we’d have never been able to go after In September 2018, the team released Fluidity our goal, which is to build a transformational One: a product which offers researchers a business that’s NASDAQ listable within three fundamentally new way to analyse proteins. to five years.” Used by academic researchers and biotech companies around the world, Fluidity One helps Working with BGF has been fantastic too scientists understand proteins better, improving says the entrepreneur. “Tim Rea is absolutely their ability to study the molecular mechanisms wonderful as the prime contact at BGF, and our of conditions like Parkinson’s disease. BGF-appointed board member, Ben Cons, has been an excellent addition. They’re both really It was while showing Fluidity One to some good at being there when we need advice but early collaborators researching treatments for not getting in the way. It’s a good example of Alzheimer’s disease that the team realised there BGF’s contribution being a lot more than just was an even greater opportunity available: one money – it’s the dream mix.” that analysed not just the proteins themselves, but the way proteins interact with other biomolecules too.

105 READY FOR BUSINESS - A YEAR IN REVIEW

Arcinova

Professor Ian Shott and his team are pioneering new, more affordable treatments for cancer

When it comes to the treatment of serious Established in 2015, Arcinova has found that by diseases such as cancer, discovering drugs that specialising in specific areas, such as oncology, can help doesn’t mean they’ll automatically the company is able to go toe-to-toe with the become part of the treatment. Often the price established pharmaceutical companies. of potentially life-saving drugs can mean that “There is a huge failure rate in drug they are overlooked because they are not development and the big companies carry large cost effective. overheads which makes it difficult for them to be competitive,” explains Shott. “This is opening Alnwick-based pharmaceutical company up the market for smaller and medium-sized Arcinova is trying to tackle this problem. companies that have specialisations.” “Our focus is to look at how to make new drugs more effectively, using more direct Arcinova’s pioneering strategy is working. manufacturing processes that dramatically The company is already collaborating closely change the cost,” explains founder, with a customer to post a patent on an oncology Professor Ian Shott. drug. Over the next three years, it intends to grow its workforce from 100 to 300 and move Arcinova does this by bringing much of the drug from a turnover of £4m to £45m. creation process under one roof. “We work out how to make the drugs, formulate that into a According to Shott, its employees are an dose that a patient can take, and we analyse important part of the company’s success. the effects of the drug on a sample of patients,” “We ensure that everyone, from our most Shott explains. elevated scientists to the cleaners, understand and feel motivated by the strategy of the “There are very few competitors that can business. The feedback we get is that do all three things. The ability for us to compare people are astounded by the enthusiasm notes for one part of the process to inform and consistency of the staff in their search another part, means we get to the right solution for better solutions.” quicker and that gives us a definite edge.”

106 READY FOR BUSINESS - A YEAR IN REVIEW genedrive

We’re bringing high-tech disease diagnosis to a global audience, says CEO David Budd

When it comes to the treatment of serious “It’s a threat we’ve seen growing in the world,” diseases, high costs and a lack of laboratories says David. “The US military contracted us to often mean people in developing nations miss develop a device and menu of testing options out on a diagnosis until it’s too late. Manchester- that was highly portable and could be carried by based genedrive has created a low-cost, soldiers in the field. We’re unique in providing portable test for hepatitis C and another in that capability.” development for tuberculosis to help people in Asia Pacific and Africa access affordable and genedrive is also working with the NHS to timely gene-based diagnosis. screen neonatal babies for antibiotic-induced hearing loss. “In the UK, 90,000 children a year “These are parts of the world where there are are admitted to neonatal units,” David explains. huge healthcare problems and bringing in “Around 80 percent are given antibiotics, but a affordable solutions is key,” CEO David Budd small number of children unfortunately suffer explains. “The vast majority of gene readers lifelong deafness as a result. With a test that require sophisticated infrastructure like a takes just 25 minutes, that can all be prevented.” hospital laboratory. We wanted to give people the same technology that could be used in a At 50 employees, genedrive is one of the less sophisticated setting.” smaller companies listed on London’s alternative investment market. Yet the business achieves genedrive is in the process of commercialising scalability through a global network of suppliers a test for hepatitis C. “There are new, and distributors and maintains its cutting-edge inexpensive drugs to treat hepatitis C but in research by investing in a team of highly- order for patients to be eligible, they have to skilled scientists. David describes genedrive’s show the virus is present,” David explains. “So business model as a ‘razorblade model’. “We we look for the molecular signature of the virus place genedrive products in the market and in the patient’s blood. And if we find it, that the business growth comes from the use of our means they’re eligible for treatment.” tests,” he explains.

With 10 million new diagnoses every year This pioneering strategy attracted the attention globally, tuberculosis disproportionately of investors and in December 2018, BGF affects people in developing countries. invested £3.5m in genedrive. BGF’s investment Traditionally diagnosed using a throat sample, has helped genedrive further the development genedrive’s technology removes the risk of of its diagnostic tests for hepatitis C and human error and also identifies patients who tuberculosis and also introduce its antibiotic- may be drug resistant. induced hearing loss test to western markets. “BGF has allowed us to continue to build the The company has also developed a suite company, develop our strategy and of tools for the US military to detect put us on a much firmer financial footing,” biohazard agents. David says. “I would never rewind the clock. It’s been a fantastic experience.”

109 READY FOR BUSINESS - A YEAR IN REVIEW

Media

Initial Company BGF Company Description investment date location office

Digital solutions for content Abacus e-Media August 2013 London London and community owners

Dianomi Native content marketing platform February 2018 London London

Live music discovery and DICE July 2017 London London mobile ticketing platform

Ebiquity Marketing and media consultancy June 2019 London London

Evoke Creative Interactive digital solutions November 2018 The Wirral Manchester

Four Communications Integrated communications agency July 2015 London London

Global App Testing Crowdsourced QA testing company December 2017 London London

Hobs Group Printing and reprographics company December 2014 Liverpool Liverpool

Hoop Family activities marketplace December 2016 London London

Just Digital Print and marketing services provider February 2019 Cambridgeshire Milton Keynes

LoopMe Mobile video advertising platform October 2018 London London

Marvel Digital design and prototyping tool August 2016 London London

MyLife Digital Personal data analytics company August 2016 Wiltshire Bristol

AIM-listed One Media Music licencing business September 2018 Buckinghamshire London

Ecommerce infrastructure for Paddle September 2016 London London software businesses

Palmer Hargreaves Aftersales marketing agency December 2013 Leamington Spa Birmingham

PurePrint Marketing services and print provider December 2014 Uckfield London

Sentric Music Independent music publisher March 2017 Liverpool Manchester

Simworx Designer of theme park attractions July 2015 Kingswinford Birmingham

Streetbees Market intelligence platform October 2016 London London

Thames Technology Plastic cards manufacturer December 2013 Essex London

Search and comparison website TickX Limited December 2017 Manchester London for leisure tickets

The Mission Creative agency September 2017 London London

Unique Digital Cinema technology service provider December 2018 Manchester Manchester

110 York Mailing Provider of promotional print services July 2013 York Leeds READY FOR BUSINESS - A YEAR IN REVIEW

Evoke

Transforming the customer experience with co-founder Dean Ward

Neil Clark and Dean Ward were working in to consider everything – from procurement product design when they saw an opportunity challenges to getting the right staff, to financing to start their own customer experience the business – and make sure you have robust business. “We knew we wanted to make our processes in place.” own products. Then a kiosk project came along. We designed it like any other product To facilitate its growth, Evoke secured a £6m but instead of handing all the manufacturing cash injection from BGF in November 2018. “We to China, we thought, ‘we can make this pumped that investment into our sales channel,” product ourselves.’” Dean explains. “We invested heavily in a new sales and marketing team. Whereas in the past, Neil and Dean decided to go for it and the we’ve been primarily reactive, the investment success of the project spurred them to add enabled us to become a manufacturing line to their business. a lot more proactive.” They founded Wirral-based Evoke in 2003. In the early days, the pair focused on As part of the investment, Mark Mills, former self-service kiosks, doing all the design, chief executive of Cardpoint was appointed as manufacturing and procurement themselves. non-executive chair, following an introduction Since then, Evoke has been voted one of the through BGF’s Talent Network, alongside BGF’s 50 fastest growing companies in the north Matt Widdall who joined the board as non- and has grown to a workforce of 100 people, executive director. “They’ve been on board including award-winning design engineers about seven months and we’re really seeing the and software developers. formation of a good business partnership.”

Today, the company works with some of the The company is helping McDonald’s to deliver world’s largest brands, including JD Sports, its pioneering self-service model. “We’ve been McDonald’s and Google. It now designs, makes working with McDonald’s for five years and and supplies digital self-service kiosks, video it’s been fantastic. Our biggest search term walls, digital signs and payment terminals. for new clients is ‘McDonald’s kiosks’.” In July Their products focus on maximising transaction 2019, Evoke’s self-service technology enabled conversion rates, improving customer McDonald’s to open its brand new ‘To Go’ experience and reducing costs. Evoke stands restaurants in London where orders are taken apart from its competitors by offering a fully only by touchscreen. bespoke service. “We do all the software and hardware design then assemble and deliver Looking to the future, Evoke has international the product while also offering a maintenance expansion in its sights. In July 2019, the service once it’s made,” Dean explains. company made its first move into the US market opening an office in South Carolina to handle In the face of a changing market, Evoke has several large scale retail opportunities. demonstrated impressive growth over the past few years. Dean estimates that Evoke has grown 30 per cent year-on-year but says it hasn’t been without its challenges. “You really have

113 READY FOR BUSINESS - A YEAR IN REVIEW

Hobs Group

How chief executive James Duckenfield and his team are transforming one of the UK’s oldest industries

When Liverpool-headquartered Hobs Group Celebrating its 50th anniversary this year, launched in 1969, it was a family business Hobs has grown through a combination of making treated paper. It has since grown into acquisition and innovation. “Shortly after I a multi-million-pound company employing arrived, we made two acquisitions and BGF over 300 people nationwide. In this time, was very supportive of that strategy,” James Hobs has embraced the shift from the industrial explains. “In September 2018, we acquired to the digital revolution, diversifying into 3D the third largest reprographics business printing, virtual reality technology and legal in the country which has really put us in a support services. commanding position in that market.”

Chief executive James Duckenfield joined the Through its network, BGF helped introduce company in 2016 and has overseen growth experienced non-executive chair Peter Bertram in all areas of the business. With a flair for to the company. “Having Peter as a mentor was reinvention, James has helped different arms attractive because he’d worked for companies of the business grow, including Hobs Repro I’d done business with,” James explains. “Peter which increased revenue from £17m really understands Hobs, takes an active role to £24m a year, streamlined Hobs 3D to “refocus and is someone I trust to bounce ideas off. on the things we do best,” and achieved year- That’s invaluable as he’s been there and done it.” on-year growth in its legal support services business. Looking ahead to the long-term, James is confident that Hobs can continue to flourish “We’ve achieved a lot in the last three years,” in partnership with BGF. “On a day-to-day James explains. “We’ve created the biggest basis, BGF is interested, involved and really e-discovery business in the UK. Our services are understands the business to a high level of used by 70 per cent of the top 50 UK law firms. detail,” he says. We’ve got really good national coverage in our printing business. And our 3D printing business “The team offers constructive support during outgrew its previous premises 18 months ago, board meetings and always asks the right so we had to move into larger premises in questions. The promise of ‘patient capital’ Stratford.” is certainly true. BGF isn’t looking for any specific time horizon for investment. It’s more Sensing the potential for growth, Hobs about supporting the management team with approached BGF to boost its expansion. a growth agenda which builds value in the BGF invested £7m in December 2014 business on a long-term basis.” and followed this up with £4m in September 2017. The investment enabled Hobs to make new acquisitions and file a patent for its award-winning multisensory virtual reality tool, VRCUB3D. Combining vibrations, sounds and smells, the technology has been used by Thames Tideway to create a virtual reality boring machine that offers its engineers a realistic training environment free from the dangers of working inside a large underground tunnel.

114 READY FOR BUSINESS - A YEAR IN REVIEW

Retailers

Initial Company BGF Company Description investment date location office

AIM-listed Angling Direct Fishing tackle specialists November 2018 Norwich London

Brand Architekts Beauty brands business June 2018 Teddington London

Brand development and connected Bullitt Group December 2012 Reading Reading device technologies

Buy it Direct Online retailer June 2019 Huddersfield Leeds

BVG Multichannel retailer June 2015 Powys Cardiff

Cass Art Chain of shops selling art materials December 2013 London London

Chesney's Fireplaces and wood-burning stoves retailer December 2016 London London

Christopher Ward Premium British watch brand July 2019 Maidenhead Reading

Direct Online Services Kitchen component specialists October 2016 Redhill Bristol

AIM-listed Fireangel Home safety product suppliers April 2019 Coventry Birmingham Safety Tech Group

Furniture Village Furniture retailer August 2014 Slough London

Grace Cole Bath, body and beauty brand January 2016 Cheadle Manchester

MorphCostumes Online fancy dress retailer June 2012 Edinburgh Edinburgh

Ocee International Commercial furniture designer July 2016 Northampton Birmingham

Oliver Sweeney Men's footwear brand December 2014 London London

Rebound Returns Returns management platform September 2018 Telford Birmingham

Spoke Ecommerce menswear brand March 2018 London London

Multichannel beauty and Revital December 2017 London London wellness product retailer

RMS International Toy and craft producer February 2016 Swinton Manchester

ROLI Music technology company April 2016 London London

Wholesale of hardware, plumbing Roxor Group January 2017 Halifax Leeds and heating equipment and supplies

Ruroc Action sports protection brand May 2018 Gloucester Bristol

Rutland Cycling Chain of bike shops March 2014 Rutland Nottingham

Seasalt Cornish clothing and lifestyle brand August 2018 Falmouth Bristol

Manufacturers of beauty SLG March 2015 Cheltenham Bristol and lifestyle collections

Sophia Webster Luxury shoes and accessories November 2016 London London

ToucanBox Arts and crafts delivery company April 2016 London London

Curated marketplace for Trouva May 2017 London London independent retailers

Trunki Travel products for children April 2013 Bristol Bristol

Uform Kitchen door and component supplier December 2018 Antrim Belfast

AIM-listed Venture Life Group Consumer self-care company July 2018 Bracknell Reading

116 AIM-listed Victoria Carpet manufacturer September 2014 Kidderminster Birmingham READY FOR BUSINESS - A YEAR IN REVIEW

Christopher Ward

Bringing affordable luxury to the watch market with co-founder Mike France

In many ways, the Christopher Ward watch However, once the collector opened the watch brand was born out of indignation. “We were and saw it was genuine, instead of writing trying to democratise luxury watches really,” an exposé he posted a glowing review on explains Mike France, who co-founded the the Timezone.com forum – just in time for business with Peter Ellis after they sold the Early Christmas. “It sparked a lot of interest in the Learning Centre in 2004. “We discovered that community, until our watches were being many Swiss brands were, in our minds at least, talked about more than Rolex,” recalls Mike. charging outrageous amounts of money for their watches. We realised we could deliver equal The next decade saw steady growth for the quality but at a much lower price.” brand, and by 2017 the founders were ready to take on an external partner. The question was, Joined by their former colleague Chris Ward, who? “We weren’t short of suitors and a number the three founders went about setting up of people had made approaches to us, and then an online-only business model that was my cousin suggested BGF. He thought they “significantly different to anybody else’s,” and would be a good fit for us culturally and from by June 2005 their first watches went on sale. an appetite point of view.” Yet, initial sales proved painfully slow, until orders suddenly started coming in from around After meeting with BGF in November 2018, Mike the world – including a scientific mission at was impressed: “They were straightforward, the North Pole. transparent and reasonable, which isn’t always the case in private equity. It felt very much as if Unbeknownst to the team, the brand had sold we would be in partnership with them.” What a watch to a well-respected watch collector followed was a smooth process, and in July 2019 living in Tasmania, an enthusiast who regularly BGF provided £6.25m of backing. posted on watch forums. Mike says the plan now is to launch a major “He actually ordered a watch with the intention marketing campaign across London and the of exposing us because he assumed we were US, and build a new website for 2020. “We’re con merchants!” explains Mike. “He’d never seen investing in new systems and people to keep a watch with that quality of movement in it for pace with what we hope will be a very exciting the price we were selling it at, so he assumed it ride for Christopher Ward from here on in.” was fake.”

118 READY FOR BUSINESS - A YEAR IN REVIEW

MorphCostumes

Co-founder Fraser Smeaton on taking fancy dress global

The idea for MorphCostumes came to co- “We met with BGF in 2012 to see if they founders Fraser Smeaton and Gregor Lawson could support our growth,” explains Fraser. while they were on a ‘lads’ trip’ to Dublin. The “At that point we only had one product and group were all wearing fancy dress and one of one channel to market. They really helped us their friends wore an all-in-one spandex suit to diversify our product base and distribution.” from Japan. “He got an incredible reaction,” Having BGF on board also helped the young says Fraser. “Hundreds of people stopped founders to professionalise. “While we had watching street theatre to take pictures of him. experience in middle management in blue chip We often wear fancy dress and had never seen companies, we’d never sat on a board before,” a reaction quite like it.” says Fraser. “They took us from being some people selling costumes online to a larger, It took wearing the suit a few more times for entrepreneurial business.” the friends to start considering them as a business opportunity. Fraser joined forces with BGF backed MorphCostumes with £4.2m. his brother Ali and together with Gregor they They started selling to other major retailers, decided to test the water – creating a business such as Walmart and Target, bolstered their plan to sell 20,000 suits – all while keeping their skill sets when it came to setting up on Amazon day jobs. Fraser’s experience from his career and developed a wider range of outfits – from in marketing helped them to get a website set piggyback costumes to inflatables. up and they hit Facebook to see if there were any takers. “It went totally crazy,” he explains. Looking to the future, MorphCostumes will “After a year we’d sold a million pounds’ worth continue to build on its existing product range. which was when we decided to quit our jobs Having acquired another costume company and concentrate on the business full time.” earlier this year, Fraser and the team are focused on getting even more products out through their The team found the fancy dress market to be a well-developed distribution channels. lot larger than they had anticipated. A trip to an American trade show resulted in a meeting with “BGF really gave us the headroom and space US costume giant Party City which placed a to grow, coming good on their promise to be large order and transformed the business. patient investors,” says Fraser.

121 READY FOR BUSINESS - A YEAR IN REVIEW

Seasalt

Bringing a taste of Cornwall to the rest of the UK with CEO Paul Hayes

In 1981, Don Chadwick walked into a small “We are obsessed with offering our customers store in Penzance, Cornwall to buy some coats quality products and the best experience at and ended up buying the whole shop. Originally an affordable price.” called General Clothing Stores, it supplied traditional workwear to local fishermen, farmers Instrumental in Seasalt’s growth beyond the and artists, as well as clothing essentials to Cornish coast has been BGF, who came on holiday makers. board to invest and advise on the retailer’s expansion: “We’ve always liked the way that In 2001, after Don passed away, his sons Neil, BGF approaches business and we share a Leigh and David had a decision to make. When number of values, so it seemed a natural fit,” Neil met his wife Sophie, a textile designer, in explains Paul. “The team we work with really 2005, they were inspired to create a quality understands it’s not just about short-term clothing brand that would reflect the local gain, but about doing what is right for the community, as well as everything the family business and its future.” loved about Cornwall. They developed what is now one of Cornwall’s biggest employers – Through BGF, Seasalt has been able to draw Seasalt. The company has expanded over nearly on a wealth of expertise, most notably in 20 years from its original store in Penzance, improving its online channels, enabling it to to become a nationwide brand stretching from grow its international presence. “What we love Belfast to Swansea, and Northumberland about working with BGF is that it backs the to Guernsey. business and provides access to a wealth of industry knowledge, but equally the team there But this growth has not deterred the company let our management get on with what they from remaining true to its values, maintaining a know best and don’t interfere in how we run friendly, small business approach. Paul Hayes, our business on a day to day basis.” CEO since 2016, says heritage still runs through the core of Seasalt. “We’re more of a medium- With BGF’s help, Seasalt aims to have between sized business now considering we have over 80 to 100 stores within the next five years, 1,000 employees, but we still operate in a way continuing to inspire customers all over the UK that maintains strong links with our customers and beyond with the spirit of creative Cornwall. and communities.

122 READY FOR BUSINESS - A YEAR IN REVIEW

Specialist engineers

Initial Company BGF Company Description investment date location office

BFF Nonwoven Technical fabrics April 2016 Somerset Bristol

BHR Group Fluids engineering June 2014 Cranfield Milton Keynes

Flowtech Fluidpower Fluid power products Apirl 2019 Wilmslow Manchester

Joloda Loading systems engineers June 2019 Merseyside Manchester

124 Moulded Foams Moulded foam products December 2018 Cumbernauld Edinburgh READY FOR BUSINESS - A YEAR IN REVIEW

Joloda International

Bringing cutting-edge automation to the world of logistics with CEO Michele Dematteis

The story goes that the Joloda founder, Sophisticated warehouse systems are being Mr Johnson, came up with the idea for the created across the world where cargo and company when he was in a cavern on a German pallets are unloaded without human touch. mountainside in the late 50’s. The facility had According to the entrepreneur, an automated been used to manufacture the V-2 bombs during Joloda system can unload a trailer in six WWII, which had been moved around on a minutes and it would take 40 minutes with a manual skate. “Johnson Loading or Joloda was forklift truck. born,” says CEO Michele Dematteis. Spotting opportunities for further growth, the Specialists in the skate and track loading newly formed management team approached system, Joloda was founded in 1962 – bringing BGF to talk about funding. “The previous owner the technology to the UK for the first time. was still a shareholder and we we’re looking Many years later in 2003, the company added to buy him out,” says Michele. “We had also further specialist pallet and air cargo loading identified a number of acquisitions that we were systems to the offering through the acquisition keen to explore.” of a its competitor Hydraroll in 2003. Michele, along with two partners, Wouter Satjin and Alec Following an initial meeting with BGF’s McAndrew, completed a buy-in management Neil Inskip, both sides decided the time was buyout of the company in 2017, seeing plenty of right and BGF invested £7.5m to support the opportunity to continue growing the business. growth of the business. The deal also saw Joloda appoint Mike Molesworth, former CEO “There are a number of reasons the company is of refuse truck manufacturing giant Dennis doing quite well,” says Michele. “Firstly, we’re Eagle, as chairman. closely linked to the air cargo industry – loading and unloading air cargo transporters – and this “Mike’s great, he’s been there and done it and is growing quickly thanks to ecommerce as he’s got a lot to offer us,” says Michele. “As well more and more parcels are being flown around as offering his advice and experience, what the world in record time. The second thing is we really appreciate is that he actually listens the link to “Industry 4.0” the fourth industrial to us. Mike, and BGF in fact, have been great revolution or automation and data exchange in at listening to what we plan to do and manufacturing technologies and processes.” supporting on that rather than telling us how it is. That means a lot.”

127 READY FOR BUSINESS - A YEAR IN REVIEW

Waste management

Initial Company BGF Company Description investment date location office

J&B Recycling Family-owned recycling company July 2014 Darlington Newcastle

Johnsons Aggregates Aggregrates recycling suppliers July 2016 Derby Nottingham

Keenan Recycling Organic waste management company September 2015 Aberdeen Aberdeen

Red Industries Sustainable waste management business December 2018 Stoke-on-Trent Birmingham

RiverRidge Recycling Integrated waste management company September 2016 Belfast Belfast

Total Recycling Services Hazardous waste management August 2015 Darlington Newcastle

Liquid waste management Wales Environmental August 2016 Cardiff Cardiff and drainage firm 128 READY FOR BUSINESS - A YEAR IN REVIEW

J&B Recycling

Boosting recycling capacity to tackle waste with MD Vikki Jackson-Smith

When the power stations of Yorkshire privatised more efficient and she met with BGF to discuss in the mid-nineties, Vikki Jackson-Smith’s funding. “It’s a capital-intensive industry and to family-run solid fuel business saw a decline maintain our high-quality waste materials, we in demand, as the stations started importing needed to invest in state-of-the-art, automated their own coal. Combined with the drop in sorting machines,” explains Vikki. “BGF’s domestic demand for solid fuels – the company investment helped us with that and to buy a was facing a serious challenge. Spotting an third recycling site.” opportunity in the new government-legislated recycling targets, Vikki pivoted the business into On top of the £7.5m investment, J&B Recycling recycling by starting glass bottle collections. has been able to tap into BGF’s wider network for advice and expertise as the company has “We needed to find a new direction that would continued to scale: “They’ve been excellent use our current infrastructure and skills of the for us. We’ve got a great addition to our board, workforce,” she explains. “Due to the new providing helpful guidance and in addition to landfill tax, escalator companies’ waste disposal that, great access to other CEOs, directors and costs were increasing, so we started offering a FDs to discuss any issues with.” solution to reduce the charges they were facing by collecting their glass. This later put us in a “The key success factor is the business strong position to offer a service to local has grown by over 200 per cent since authorities too and help them meet household the investment.” recycling targets.” Vikki is planning for future growth, safe in the The company rebranded as J&B Recycling and knowledge that she will not have to change soon moved on from bottles to a full suite of investor. “We selected BGF because of its recycling capabilities, including the investment patient investment strategy, they’re in it for in an automated sorting plant to process the the long-term, not some two or three year mixed recycling from kerbside bins, everything investment cycle.” from cardboard to tin cans. J&B Recycling is now actively looking at a With a focus on producing good quality waste number of acquisitions as well as planning materials, J&B became one of only a handful of for further development of the current sites, recycling plants in the country to meet the high thanks to an increase in demand for recycling. standards needed to export the materials to “People have always been aware of recycling China for reprocessing. but programmes such as Blue Planet have really brought plastic waste to their attention. The In 2014, the company was operating two market is certainly there, as long as we maintain recycling facilities and a waste transfer station. our focus on quality.” Vikki saw an opportunity to expand the business, increasing capacity and making it

130 READY FOR BUSINESS - A YEAR IN REVIEW

Keenan Recycling

Founder Grant Keenan is harnessing the value in household food waste

A chance meeting inspired serial entrepreneur But the real driver for Keenan Recycling’s Grant Keenan to start waste recycling group success, Grant explains, has been an unerring Keenan Recycling in 2003. “I went for a meeting focus on the customer. “The secret to our with Aberdeenshire Council and discovered it growth has been customer service. We don’t was putting all its garden waste into landfill,” miss bins. We care about what we do. We offer explains Grant. “I didn’t know anything about a first-class service. We work seven days a recycling but I saw an opportunity, did a bit of week, 24 hours a day.” research and that’s how it all started.” Keenan Recycling’s strategy worked. The Keenan Recycling is proof that sometimes company soon saturated the North East of it takes a family to build a business. Grant’s Scotland and were seeking capital to expand brother and fellow director helped him raise into the Central Belt. Keenan Recycling was the initial capital with a grant of £430,000 from approached by a number of private equity the Waste Resources and Action Programme. firms, but after meeting with BGF, Grant was His father then sold his business to invest in confident the fit was right. “We liked the BGF the company and his wife helped the business guys. They took the time to get to know us. to expand. I phoned everybody in Scotland they’d invested in and everyone said they’d had a Keenan Recycling soon gained a competitive good experience.” advantage by offering large waste management companies a one-stop-shop for food waste BGF invested £2.2m into Keenan Recycling recycling. “If one of these companies wins a in September 2015. The funding has enabled new contract with a food producer,” Grant the business to buy more machinery and explains, “they would have to find a food waste expand. “We were at £4.2m turnover when BGF management company in every new area invested,” Grant explains. “Now, we are going whereas we can cover the whole of Scotland towards £10m this year.” And looking to the with one contract.” future, Grant is confident that, in partnership with BGF, Keenan Recycling can continue to Keenan Recycling’s location in the North East grow. “We have expanded as far as Leeds and of Scotland has helped fuel its growth. “There’s Manchester. The plan is to keep progressing no doubt about it, we were blessed to be south and get nationwide coverage so that we in Aberdeen. At that time, oil was booming can serve every postcode in the UK by 2023.” and we got BP and Shell on board. They had environmental initiatives that included recycling food waste so we were fortunate.”

133 READY FOR BUSINESS - A YEAR IN REVIEW

The board

Sir Nigel Rudd Stephen Welton Chair CEO

Matthew Reed Alice Avis Stuart Johnstone COO Non-executive director Shareholder director, RBS

James Chew Neil Johnson Stephen Murphy Shareholder director, HSBC NED and senior independent director Non-executive director

Kevin Wall Adrian White Diana Noble Shareholder director, Barclays Shareholder director, Lloyds Non-executive director (until July 2019)

134