Member Article

Orwin secure further Growth Fund investment

Washington-based Orwin, the automation and special purpose machine manufacturers, have secured a second round of investment since last summer.

The latest five-figure investment in the manufacturer from the Finance for Business North East Growth Fund follows a six-figure investment in the company last June.

Since winning a number of larger contracts, the business will now use the funding to introduce a range of improvements.

Orwin’s workforce has grown to almost 100-strong and the firm say they continue to emphasise the importance of recruiting graduates and apprentices.

NEL Fund Managers administer the Growth Fund and have worked with Orwin since 2008 when they supported an investment for an acquisition.

Originally founded in the mid-1980s, Orwin Ltd was primarily established to be a supplier to Nissan, but grew over time to service much of the region’s manufacturing industry, and subsequently expanded its operations both across the UK and into Europe and the US.

The company operates across a range of industries, from aerospace, automotive and electronics through to food & drink, healthcare and plastics, and provides a tailor-made ‘one stop shop’ service for customers, from initial concept through to final delivery.

Michael Cook, finance director at Orwin, says:“Securing our first Growth Fund investment gave us both the capital and the confidence to implement a lot of the ideas that we’d long been talking about, especially around improving our business control and IT systems, and it’s helped us really change the face of the business.

“Our focus is now on securing smaller numbers of higher value projects, which naturally requires greater flexibility in terms of working capital, and on ensuring we develop the strongest possible relationships with clients by demonstrating a forensic understanding of their requirements.

“Introducing the Process and Development team has made a big difference in this respect, and identifying early in the development process how projects can be taken forward with maximum efficiency is obviously beneficial for both us and our clients in terms of time and money.

“Our growing number of younger recruits are very comfortable with using the new technologies that are central to our operations, and our aim is to bring in even more graduates and apprentices as their predecessors develop their skills and move up the business.

“We’ve continued to enjoy a positive relationship with the NEL team, and their recognition of and enthusiasm for our commercial ambitions made approaching them for a second Growth Fund investment the obvious choice.”

Simon Johnson, senior investment executive at NEL Fund Managers, adds: “The Orwin management team has taken a very far-sighted approach to where they want the company to be in the future.

“They’ve made tremendous progress over the last year in introducing a range of improvements across the business, and the plans they have to take things on from here represent a solid investment opportunity for us.”

Mark Irving, director at Irving Ramsay Ltd, who provided advice to Orwin on the deal, says: “It was a pleasure to support the Orwin team once again in a successful finance raising process with NEL. NEL has given the business strong backing over an extended period of time now and the Orwin team has justified this support by consistently delivering.”

Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.

Managed by North East Finance, it will see £125m of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund 2007-13 over a five year period.

This was posted in Bdaily's Members' News section by Tom Keighley .