A specialist north east supplier of equipment for people with disabilities is eyeing bigger contracts and nationwide growth after attracting a six-figure investment into the business.
Lynch Healthcare manufactures, supplies, installs and maintains a wide range of disability equipment, including ceiling and pool hoists, shower chairs and changing tables, and already works with a growing number of public and private sector organisations.
The company has quickly established itself as one of the leading players in its market since being set up three years ago by managing director David Lynch, and plans are now in place to increase the company’s annual turnover by around 50 per cent over the next year, which would take it through the million pound barrier.
Lynch’s continuing development is now being backed by a £100,000 investment from the Finance For Business North East Growth Fund that is administered by regional fund management firm NEL Fund Managers.
The investment will provide Lynch with the working capital it needs to tender for larger contracts, a drive which will be supported by the appointment of new sales staff at its Sunderland headquarters.
Further additions to the company’s seven-strong team are expected in the coming months as work progresses to build the Lynch brand right across the UK.
David Lynch established Lynch Healthcare after deciding he wanted to set up in business in his own right after successfully working for six years as managing director of a similar firm.
He says: “I set up the company after deciding it was time to take control of my own business ambitions, and the commercial success we’ve enjoyed in the last three years has already backed up that choice.
“We set ourselves apart from the competition through the superior personal service that we provide to all our clients, which gives us a business model and culture that we’re very confident we can replicate right across the UK.
“The targets we’ve set ourselves for this year are ambitious and demanding, but we also feel they’re very much realisable, and the resources we know have in place give us the capital flexibility to go after the larger contracts that we know we can win.
“The NEL team’s approach made their offering a great fit for our needs – they quickly understood the investment case we put forward and saw the positive difference that this new capital would make to our business.
“We also really liked the premise of the Growth Fund, with our success creating new resources that will eventually become available to other developing regional businesses through its legacy fund, and we’re looking forward to making a strong contribution to this over the coming years.”
David Thomas, investment executive at NEL Fund Managers, adds: “The combination of an experienced management team with detailed knowledge of a vibrant niche market and the ambition to maximise the returns that can be made from it gives Lynch Healthcare a very solid base from which to build towards even greater commercial success in the future.”
Graham Cornforth, Corporate Finance Manager at Haines Watts, who advised Lynch Healthcare on the investment, says: “We worked closely with David to assess all funding options, and it was clear from our initial meetings that NEL Fund Managers, via the Finance For Business North East Growth Fund, were very supportive of the business plan.
“With this additional funding, Lynch Healthcare can plan for significant growth in turnover, both through expansion into new markets and new products, and its infrastructure investments will also lead to the creation of several new full time positions.”
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, the European Regional Development Fund 2007-13 and the regional development agency over the next five years.
NEL is looking to make around 130 investments over the five-year life span of the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.
For more information about NEL’s investment criteria, visit www.nel.co.uk or contact the investment team on 0845 111 1850.
The ERDF 2007-13 programme is bringing over £300m into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.