Member Article

Sheffield technology business secures £2.5m from Finance Yorkshire

A £2.5m funding package including an Equity Linked Investment from Finance Yorkshire has helped a Sheffield-based high technology company develop products, create new jobs and expand its global customer base.

Established in 2006 as a spin-out company from the University of Sheffield, Magnomatics Limited has a range of patented products, including high efficiency, ultra compact motors and generators, as well as magnetic transmission systems.

A clean technology company with a focus on energy efficiency and renewable energy, Magnomatics works across sectors including automotive, marine and aerospace.

Chris Kirby, CEO, said: “We needed finance to further production engineer our innovative products to demonstrate their robustness and suitability for series manufacture.

“Our goal was to create a platform of unique cost-effective electro-mechanical products which would be applicable to the global markets we had identified, with an initial focus on hybrid electric vehicles in the automotive and marine sectors.

“After six years of consistently delivering technology assessment projects for our customers, we had reached a stage where, to develop further, we required external funding to enable us to grow our engineering team and mature our products so that we could win larger contracts.”

Finance Yorkshire provided £1.1m Equity Linked Investment which attracted a matching £1.1m co-investment from new investor IP Group plc, together with additional funding of approximately £0.35m from existing investor Fusion IP.

The funding round has helped Magnomatics to more than double its workforce and advance its products. From 12 employees at the beginning of last year; the current workforce is in excess of 30, the majority of which are experienced and highly qualified engineers.

This was posted in Bdaily's Members' News section by Mark Lane .