Partner Article

Gateshead training outfit secure £180k to fuel expansion

A successful North East training company that has branched out across the UK over the last year with the help of outside investment is aiming to broaden its horizons even further after securing a second tranche of funding.

Low carbon-sector specialist Group Horizon has secured a £180k investment from the Finance for Business North East Growth Fund, managed by NEL Fund Managers.

It is the second tranche of funding for the Gateshead-headquartered firm, which provides employer-led training programmes in association with further education providers across and outside its home region, including in Teesside, Hertfordshire, Birmingham and London.

A £200k investment in early 2013 funded early expansion plans.

Since then, the company has developed a standardised approach to its service provision that can be tailored and rolled out in any location, and its successful implementation of its expansion plans has brought it to the attention of several major employers across the UK who are looking for partners to help deliver on their training and corporate social responsibility objectives.

The firm’s annual turnover has increased by 30% to over £4m in the last year, despite continuing difficulties in the wider training market, and it is on track to deliver on its plan to reach a £6-7m turnover over the medium term.

Group Horizon was founded in 2009 by engineers Dan Elgie and Peter Behan after they noticed a gap in the market around training provision in the low carbon sector, and the company’s portfolio now includes renewable technologies, Green Deal, energy efficiency, low carbon building treatments, advanced manufacturing and electric vehicle technology.

Clients include household name energy companies and emerging green deal providers, and the tutors employed by Group Horizon are all experienced industry professional, meaning they are able to link the information they provide in the classroom, site and workshop directly to the jobs their students will be doing.

The firm now employs 48 people, with more jobs expected to be created as new contracts come in, and it has invested heavily in its own research and development team to develop tailored course content for its clients.

Peter Behan says: “The first investment we received helped us establish a presence around the UK, and because of what we’ve achieved nationally, we’ve come to the attention of a number of larger firms who understand how our skills and services can help them deliver their commercial objectives.

“In order to work with these organisations, they need to be totally confident that we have everything in place to fulfil their requirements, and the standardised systems and services we’ve developed and delivered gives us the evidence we need to secure that confidence.

“Even though it’s been a tough year in our sector, we’ve managed to achieve substantial growth, and there are a number of opportunities in the pipeline that are set to keep this trend growing through 2014 and beyond, bringing new jobs and increased revenues with them.

“NEL have remained closely interested in our progress, but have also allowed us to just get on with delivering the business plan. Our relationship with the team has been brilliant, and we couldn’t have achieved what we have so far without their support.”

Chris Parker, investment executive at NEL Fund Managers, added: “Having investment capital available to help businesses through the different stages of development is a crucial part of encouraging successful firms to keep moving forwards.

“Staying close to growing businesses, responding to developing investment needs and supporting their evolving ambitions in the most appropriate way brings clear benefits for all parties, and we look forward to seeing Group Horizon making even more excellent progress.”

Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.

Managed by North East Finance, it will see £125 million of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund 2007-13 over a five year period.

NEL is looking to make around 130 investments over the five-year life span of the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.

For more information about NEL’s investment criteria, visit www.nel.co.uk or contact the investment team on 0845 111 1850.

The ERDF 2007-13 programme is bringing over £300 million into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1 billion per annum.

This was posted in Bdaily's Members' News section by Tom Keighley .