01/02/2016

North East Growth Plus Fund backing helps Newcastle energy consultants go for growth with energy-saving product

An energy consultancy based in Newcastle is expanding with the backing of a six-figure mezzanine loan from the North East Growth Plus Fund managed by FW Capital.

FW Capital’s loan has enabled Cenergist to become the exclusive European distributor of the patented Showersmart HL2024 flow regulator.

Easily fitted to most kinds of showers, Showersmart stabilises water flow regardless of pressure and reduces consumption.

In long-term trials, 400 households equipped with Smart meters saved an average of €78 a year in energy and water costs by fitting Showersmart.  One family saved the most and was €225 a year better off.

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

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

Previous projects include the design and delivery of multi-million-pound communal heating systems for high-profile clients such as Hackney Homes, Wythenshawe Community Housing Group and Bupa.

The company has also recently won a contract with Bernicia Homes to improve the energy efficiency of a 46-flat tower block in Gosforth.

FW Capital Investment Executive, Keith Charlton structured Cenergist’s mezzanine loan. Commenting on the investment 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.”

The European Union’s Energy Efficiency Directive (2012) currently requires member states to achieve energy savings of 20% by 2020.

North East Growth Plus Fund