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04/04/2011

Postal services success following investment

Totalpost Services plc will use a £150,000 loan from FW Capital to support its strategy of becoming one of the UK's top complete mailroom services suppliers.

Headquartered in Cumbria, the company will use the loan to purchase a new production line used for recycling and refilling franking machine cartridges as well as to complete its Warrington disaster recovery and business continuity centre.

"Totalpost's vision is to provide a cost-effective, complete mailroom service to companies in the US, UK and Europe," explained David Hymers, Managing Director. "We already supply and maintain postal and other office equipment for blue-chip companies, banks and government departments in the UK and we now plan to enter new markets in Europe as well as to grow our existing UK and US operations."

Totalpost currently operates from three UK centres and also supplies companies in more than 18 countries.

The company's disaster recovery and business continuity centres in Warrington and Swindon offer mail sorting and opening services, outgoing mail fulfilment, returned and 'gone away' mail, document scanning and storage.

Totalpost also operates a mailroom services business in the US and is currently looking to set up similar operations in France and Germany.

"Using FW Capital's investment we've taken the production of our own label franking machine cartridges in-house and we now operate three production lines to meet the growing demand for our products," Hymers added. "We are also looking to set up mailroom services operations in Germany and France."

Gary Guest, Fund Manager at FW Capital said: "Totalpost has a clear understanding of the market potential for its products and services. The loan from FW Capital will help the company meet the growing demand for its products and services, which will take them to the next stage of their growth plans."

FW Capital's investment is the second loan from the North West Fund for Business Loans.

Andy Leach, chief executive of NWBF said: "I'm delighted that The North West Fund for Business Loans is supporting Totalpost in achieving its growth plans. As a North West business, active across the UK and beyond Totalpost is reflective of the ambition of North West businesses and entrepreneurs that The North West Fund is hoping to support."

FW Capital currently has offices in Manchester and Liverpool and manages the £35 million North West Fund for Business Loans which makes investments of between £50,000 and £250,000 to viable small and medium-sized businesses (SMEs) based in the North West of England.

FW Capital is part of the Finance Wales Group, one of the UK's largest SME investment companies. The Finance Wales Group manages funds of more than £335 million and has invested over £183 million. It invested a record £37 million in SMEs in the 2009-10 financial year through 246 equity and debt investments.

The North West Development Agency (NWDA) led the development and creation of The North West Fund from drawing-board (2008) to launch (2010) and NWDA funding will continue to support The North West Fund until 2015 as one of its major legacy projects.

Find out more about investing in the North West of England.

*The North West Fund for Business Loans has now been replaced by The North West Fund for Loans Plus.

North West Fund Loans Plus