Growth Fund - Loans & Equity Case Study
SNG Commercial was established in 2010 by Simon Gunter, who identified a gap in the mid-tier laundry detergent market for a product which offered the credibility of the big-name brands, but at a lower, more affordable cost.
Leeds-based SNG Commercial began trading in 2013 and has already expanded its range of products to include laundry capsules, dishwasher tablets and gels. It also developed Senses Pure, a fabric softener designed especially for children’s sensitive skin.
Its ‘Muvo’ and ‘Senses’ brands of detergents and fabric softeners are stocked in a number of discounters and wholesaler chains and the business is in discussions with major supermarkets, as well as distributors for the premium detergent brands.
Finance Yorkshire initially invested £400,000 in SNG Commercial in 2014 but the business required further funding to take full advantage of additional market opportunities.
Founder Simon Gunter said: “The first investment was vital in allowing us to scale up and realise opportunities in the market. We made significant progress since then, both in terms of expanding our family of products and establishing strong relationships with major retailers and distributors.”
Finance Yorkshire Involvement
Finance Yorkshire provided a second round of investment with an £800,000 Equity Linked investment.
SNG will use its second Finance Yorkshire investment to secure better credit terms and volume discounts, in addition to providing working capital for stock purchases, recruitment and promotional activities.
The Investment Rationale
Finance Yorkshire Investment Director Andrew Burton said: “We have now invested well over £1 million in SNG Commercial and that in itself speaks volumes about the confidence we have in Simon and his team. They have taken the time to develop a high quality product and establish an efficient supply chain, and that initial dedication and attention to detail is now coming to fruition.
“We are very confident that with a young, motivated management team in place, and particularly one with such strong knowledge of the sector, SNG Commercial will continue to make a major impression on the UK market, and capitalise on overseas opportunities within the next 12 months.”
Simon said: “This second round of funding from Finance Yorkshire will enable us to really capitalise on our success so far in the UK market, as well as looking at exporting later in 2015.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire