Peterlee company’s expansion propelled by £750,000 investment from FW Capital

6th June 2011

A North East company which supplies specialist procurement and inventory management systems has secured a £750,000 equity investment from the North East Growth Plus Fund managed by FW Capital to continue its ambitious expansion.

Peterlee-based Propeller Holdings Ltd will use the investment to fund its diversification into new markets as it starts rolling out its latest technological advance, the new Pro-Vyda inventory control system. The Pro-Vyda system offers measurable cost and efficiency savings to large multi-site manufacturing companies and Propeller aims to double its turnover in the next two years.

“Our new Pro-Vyda system is key to our expansion. It enables companies with diverse and complex manufacturing operations to dramatically reduce spend on spares and consumables,” explained Propeller’s Managing Director, Carl Brookes.

“By using Pro-Vyda, our clients can achieve cost and efficiency savings in excess of 40%. It is an accurate and highly secure vending system that focuses on reducing consumption of inventory.”

Propeller Holdings was established in 2001 and initially provided outsourced stock management systems to the manufacturing and process sectors. The company has since developed its own web-based systems which are currently used by manufacturing companies including those in the automotive, aerospace and food sectors.

The company’s growing client base includes TRW, Intersnack and Sony. Propeller now plans to secure a number of new deals with large UK and European manufacturing companies to grow its customer base.

Commenting on the investment Propeller’s Chief Executive, Tony Goodwin, added: “Our aim is to increase the company’s annual turnover to £15 million by 2014 and we will recruit additional staff to meet the increased demand for our systems and services.

“We’ll use FW Capital’s investment to continue developing our technology and to refine our products and services. It will also help us push ahead with our expansion plans for Europe.”

Joanne Pratt, Senior Investment Executive at FW Capital said: “Propeller Holdings has a dynamic management team with a healthy appetite for growth. The company’s focus on product innovation helps it stay ahead of the competition by providing real added value to its customers.

“FW Capital’s investment will enable the company to undertake some ambitious plans to continue developing its products and services and expand into new markets.”

FW Capital has made the investment from the £20 million North East Growth Plus Fund which is part of the £125 million Finance for Business North East Fund.

The North East Growth Plus Fund is targeted at established businesses in the region and can provide single-round investments of between £350,000 and £1.25 million.

Advisors on the deal were Dickinson Dees (legal to FW Capital), Crutes LLP (legal to Propeller), Santis LLP (commercial due diligence).

Media enquiries

Marianna Marks

Tel: 07958 690659

E-mail: marianna@mandmcomms.com