Tamworth-headquartered logistics firm OnLogistics is set to expand a number of its divisions, after receiving £350,000 from the Midlands Engine Investment Fund (MEIF).
The funding, provided through MEIF Debt finance, operated by Maven Capital Partners, will enable OnLogistics to recruit 14 more employees across its two Midlands sites after recently announcing its occupancy of a new 20,000 sq. ft. facility at Elmdon Trading Estate – strategically creating a second base close to Birmingham International Airport.
Following a three-year contract win with Rolls Royce Control Systems, the new recruits will help the firm meet increased workloads associated with larger global contracts.
Lord Digby Jones, Chairman of OnLogistics Ltd, who invested his own capital into the company in 2016, said: “Timed to perfection, this funding boost for OnLogistics will provide the company with the extra impetus to enter new markets and grow its customer reach via three distinctive brands; OnLogistics Aerospace, OnLogistics Distribution and Fulfilment and OnLogistics Nursery.
“The MEIF Debt Finance offered by Maven not only provides ambitious SMEs across the Midlands with important funding, but also strategic and operational advice delivered by the investment team on the ground. Alongside other members of the OnLogistics management team, I look forward to driving the business forward in this new and exciting chapter.”
James Leavesley, Executive Board Member with Stoke-on-Trent and Staffordshire Local Enterprise Partnership, said: “We are delighted to see this leading local firm expanding and creating new jobs with the support of MEIF funding. OnLogistics is a great example of the innovative, go-ahead enterprises that make our region such a great place to do business.
“I would urge other firms to contact MEIF and explore the funding options available to support their expansion plans and help our economy to thrive.”
OnLogistics has diversified its supply chain in recent years to now include warehousing, product packaging and distribution. Demonstrating these wider capabilities is the firm’s entrance into other high-growth sectors, including baby travel accessories, after partnering with manufacturer Apramo, that sees OnLogistics manage its domestic and international product distribution.
As well as recruiting new staff, this round of finance from the Midlands Engine Investment Fund will see the rapidly growing firm make a series of improvements to its distribution service, upgrading its IT systems to unlock further efficiency through order barcoding, electronic tagging and satellite tracking of vehicles.
The funding will also allow OnLogistics to roll out in-house developed technology that integrates with its customers’ e-commerce platform, creating a seamless customer experience, as well as develop next-generation packaging, helping to grow and diversify the existing customer base.
Nick Bennet, Managing Director of OnLogistics said: “We are delighted to have the backing and support of MEIF and Maven. It is a great opportunity for OnLogistics to execute its ambitious growth strategy, expand the team and unlock several market opportunities.
“Our experience with the local Maven team was seamless, where a dedicated investment manager worked with us to make sure the process was as efficient and quick as possible. We look forward to continue working with the team at Maven to embark on our exciting expansion plans.”
Steve Lewis, Investment Director at Maven Capital Partners, said: “We are delighted to support OnLogistics’ ambitious expansion plans. This is an established, entrepreneurial business that has the opportunity to grow its reach and enter new markets, while also cultivate and expand its customer base and create new jobs within the Midlands region.
“The highly regarded senior leadership team has extensive experience and is committed to delivering growth. OnLogistics is a great example of the kind of business we’re looking to support via the MEIF Maven debt fund and we are excited to work with the team to help drive the business forward.”
Ken Cooper, MD at the British Business Bank, said: “OnLogistics is a great example of how money from the Midland Engine Investment Fund can support growing businesses in the Midlands. With this funding from Maven, the company looks set to grow from strength to strength, having identified a great market opportunity. That growth will be supporting the hiring of more employees and boosting the local economy.”
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
Pictured left to right are: Kerry-Jayne Cook (OnLogistics), Simon Cunnington (British Business Bank), Ken Cooper (British Business Bank), Lord Digby Jones (OnLogistics), Dean Bennett (OnLogistics), Nick Bennett (OnLogistics), Andy Povey (Maven Capital Partners), Steve Lewis (Maven Capital Partners), James Leavesley (Stoke-on-Trent & Staffordshire LEP), Richard Chaplin (OnLogistics) and Tracey Bennett (OnLogistics)
About the Midlands Engine Investment Fund (MEIF)
• The Midlands Engine Investment Fund, supported by the European Regional Development Fund, will invest in Debt Finance, Small Business Loans, Proof-of-Concept and Equity Finance funds, ranging from £25,000 to £2m
• The Midlands Engine Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
• The Midlands Engine Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
• The Midlands Engine Investment Fund covers the following LEP areas: Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands; and Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire, Leicester and Leicestershire, and South-East Midlands in the East and South-East Midlands.
• The project is receiving up to £78,550,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.
• The European Investment Bank is providing £122,500,000 to support the Midlands Engine Investment Fund. This follows backing for the Northern Powerhouse in 2017 and backing for the newly launched North East Fund. For further information visit www.eib.org
• The funds in which Midlands Engine Investment Fund invests are open to businesses with material operations in or planning to open material operations in the West Midlands and East & South-East Midlands.
• The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb