3 August 2015
PRODRIVE COMPOSITES SECURES £6 MILLION INVESTMENT
Prodrive Composites has secured a £6m growth capital investment from BGF (Business Growth Fund). The Milton-Keynes based business, has seen significant growth in the past two years with new significant contracts in the automotive and aerospace sectors.
Prodrive Composites employs nearly 200 people and sales hit £13m last year and are on course to grow to more than £15m at the end of this financial year. In the past 18 months the business has achieved significant capacity improvements, reducing the cycle time from raw material to finished parts from an average of six to eight weeks down to two weeks.
As part of the investment, John Weston joins the company as non-executive chairman. Weston has spent 32 years in the aerospace and defence industry, concluding as CEO of BAE Systems with sales of £12.5bn and 120,000 employees. He now works to support a number of small companies in the high technology and manufacturing fields including as Chairman of Torotrak and FibreCore. BGF’s Ian Downing joins the board as non-executive director and James Syrotiuk as board observer.
Dominic Cartwright, Prodrive Composites managing director, said: “This is an exciting time in the composites industry and for Prodrive Composites. Demand is growing and we are well placed to service this. As a junior partner in the business, BGF brings both investment and an external perspective and we are very much looking forward to being able to call on their support as we continue to grow.
“We are also delighted to welcome John Weston to our board. John’s knowledge, contacts and experience will prove invaluable as we look to move the business into its next stage of growth.”
Ian Downing, investor, BGF said: “The demand for carbon fibre composites is on a clear upwards trajectory and Prodrive Composites has the legacy, ambition and customer base to really capitalise on that. We are looking forward becoming a junior stakeholder in the business, alongside Prodrive Holdings.”
BGF (Business Growth Fund) is the UK’s most active provider of growth capital to small and mid-sized businesses. BGF makes initial investments of between £2m and £10m and can provide additional funding to support further growth. The investment provided is typically in the form of equity in return for a minority equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for companies with strong growth potential.
BGF is an independent company with capital of up to £2.5 billion and is backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS and Standard Chartered. BGF is managed autonomously with an independent management team.
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