Member Article

Funding flows as Newcastle energy consultancy lands European distribution deal

Energy consultancy Cenergist has secured investment to become the exclusive European distributor of a cost saving shower device.

A six-figure mezzanine loan from the North East Growth Plus Fund, managed by FW Capital, will allow the Newcastle-based firm to distribute the patented product.

The Showersmart HL2024 flow regulator, or Showersmart for short, fits to showers to stabilise water flow, ultimately reducing consumption.

Established in 2012, Cenergist provides energy consultancy services to businesses and organisations, helping them reduce their carbon footprint and energy costs.

During trials, the firm equipped 400 households with Smart meters, resulting in an average energy saving of €78 a year.

Cenergist estimates that households and hotels in the UK could achieve average savings of around £45 a year and the company says buyers will recover the cost of the regulator within six months.

Managing Director, Mitesh Dhanak has worked in the energy sector for the last 15 years and believes Showersmart offers a great opportunity for the business to move into exciting new markets:

“We’ve been keen to diversify for some time and a proven product like Showersmart will enable us to offer landlords and property owners a practical and affordable energy-saving solution.

“Securing the right investment was key for Cenergist and the mezzanine structure FW Capital came up with took into account our revenue and other projections and provided us with the flexibility we were looking for.”

He added: “We’re really excited about Showersmart as we believe it will strengthen the business and widen our reach.”

FW Capital Investment Executive, Keith Charlton structured Cenergist’s mezzanine loan.

He said: “Cenergist’s management team has already used its extensive experience and expertise to establish an impressive track record and enviable UK customer base. They understand their industry very well and have a clear expansion strategy and launching Showersmart is an important step for them.

“Increasing regulation and rising energy costs are driving consumers and businesses to look for ways to reduce their energy consumption and save costs. FW Capital’s backing has provided this dynamic young company with the capital to fund its expansion with a product that has significant potential and a clear market niche.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →