Digital-led boiler firm to expand outside North East heartland with £2.15m investment

A North East company that sells, installs and services boilers has secured a seven-figure investment.

Private equity house Maven Capital Partners backed Boiler Plan (UK) Ltd, based in Cramlington, with £2.15m to help the firm broaden its geographical reach.

The deal, which comprises £1.65m from the Maven venture capital trusts and £500k from the North East Development Capital Fund, will also be invested in Boiler Plan’s sales, marketing and digital functions.

The company’s online platform enables customers to purchase a new boiler, arrange installation within 48 hours and handle all other stages in the process, including finance payment options and ongoing maintenance.

The Boiler Plan platform serves around 45% of the UK market geographically. The new investment will help the firm roll its operations out to new territories, including London, South East, South West, Wales and Scotland.

By 2020, the company is aiming to cover 90% of the UK, where the domestic heating market is worth an estimated £3bn.

Boiler Plan’s MD and founder, Ian Henderson, said: “Myself and my management team at Boiler Plan are delighted to have gained this investment from one of the most progressive fund managers in the UK.

“I would like to thank [investment manager] Alex Marsh and the rest of the team at Maven for their hard work and first class advice during this process.”

He added: “The realisation of this capital will allow us to continue on our growth path and further invest in our digital platforms and operational capability to offer our customers an unrivalled service when choosing a supplier for their new boiler.”

Maven’s Alex Marsh commented: “Most sectors have been disrupted to some extent now by digital and online solutions, and Boiler Plan’s innovative and customer focused platform has brought this choice to the heating market.

“The impressive growth the business has achieved since launching two years ago demonstrates there is a clear demand from consumers for this type of platform.”

Alex continued: “Boiler Plan fits the mould of the dynamic and entrepreneurial businesses Maven seeks to support and we look forward to helping Ian and the senior management team add scale to the company.”

Maven manages the North East Development Capital Fund, which is supported by the European Regional Development Fund.

Law firm Watson Burton advised Maven on the deal.

Paul Wigham, partner at Watson Burton, said: “We are delighted to have assisted Maven on the investment into Boiler Plan and look forward to watching the business develop with the combination of backing from Maven’s VCT investors and the North East Development Capital Fund.

“The investment from the Maven VCTs is a very positive sign that growing North East businesses who can demonstrate growth and ambition can gain access to significant growth capital from local institutional investors.”