Specialist hydraulic engineering firm Industrial and Marine Hydraulics Ltd (IMH) has secured major investment from FW Capital.
The Middlesbrough-based firm has received £300,000 from the Tees Valley Catalyst Fund and £500,000 from the Northern Powerhouse Investment Fund (NPIF).
Founded in 1983, IMH is a family-run business established by hydraulic engineer Paul Griffiths, whose son James is now Managing Director. The company has steadily expanded into a global industry leader with 40 employees and has completed major projects worldwide.
Last year Paul was awarded an MBE for Services to Engineering Skills and Apprenticeships in Teesside in the New Year’s Honours.
The £300,000 loan from the Tees Valley Catalyst Fund will allow IMH to fulfil its bond requirement on £2m contract working for the Boston Flood Defence System for BAM Nuttall and the Environment Agency.
The Advance Payment Guarantee and Performance Bond means the company can enter into the contract and retain their working capital.
The £500,000 NPIF investment will support the growth required to fulfil this contract and relocate from current premises in Middlesbrough to new premises in Tees Valley. The funding will also be used to create 10 more jobs.
Allison Routledge, Investment Executive, at FW Capital, said: “We are delighted to support such a long-established and successful family business to win new contracts, grow and employ more people in Tees Valley.
“Paul Griffiths MBE has made an incredible contribution to engineering and apprenticeships on Teesside and we are confident that this funding will enable IMH to reach new heights of success.”
James Griffiths, IMH Managing Director, said: “We are delighted to have secured this investment from FW Capital, which enabled us to secure a major contract and employ more specialist hydraulic engineers as a result. The project will further cement our presence in the infrastructure sector and contribute to our ongoing business growth. We are very grateful to FW Capital for their help and support.”
Tees Valley Mayor Ben Houchen said: “Thanks to our £20million commitment into the Northern Powerhouse Investment Fund, I’m over the moon to see yet another Tees Valley business going from strength to strength. There’s so much support available to local companies looking to expand and grow, and I would urge every single one to get in touch to see if we can help.”
Managed by FW Capital, the Tees Valley Catalyst Fund has invested £17.4m, helping businesses win almost £200m of contracts in total.
The pioneering fund is designed to help companies bid for work and is backed by the Government’s Regional Growth Fund. It provides loans to support the issue of performance, warranty bonds and advance payment guarantees which provide a financial guarantee to a client that a supplier will deliver on time and to standard.
The fund offers short-term debt investments from £100,000 to £2 million to support businesses bidding for contracts. FW Capital manages this £10 million fund for Tees Valley Combined Authority.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
The Northern Powerhouse Investment Fund provides a mix of debt and equity funding (£25,000 to £2m). It works alongside ten Local Enterprise Partnerships (LEPs), the combined authorities and Growth Hubs, as well as local accountants, fund managers and banks, to support Northern-based SMEs at all stages of their development.