Sheffield sensor firm grows non-EU exports with EU-backed loan

A Sheffield sensor company is expanding exports to non-EU countries after borrowing a six-figure sum from a European Union-backed fund.
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Labfacility has bought the next door unit and plans to hire six apprentices to grow non-EU exports due to the uncertainties of trading with Europe post Brexit.

Today, exports are a quarter of turnover - some 14 per cent outside Europe to countries including the US, China and Australia.

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It borrowed the money from the British Business Bank’s Northern Powerhouse Investment Fund, which is supported financially by the European Union.

Alan Scott, of FFE, Suzanne Tinkler, of BBB, and Martin Riddett, Labfacility MD.Alan Scott, of FFE, Suzanne Tinkler, of BBB, and Martin Riddett, Labfacility MD.
Alan Scott, of FFE, Suzanne Tinkler, of BBB, and Martin Riddett, Labfacility MD.

The 80-strong firm, on Outgang Lane, Dinnington, makes more than 5,000 sensors and couplings and ships more than a million products a year to 120 countries. They are used in the engineering, pharmaceutical, aerospace, oil and gas and food production industries.

Martin Riddett, managing director, Labfacility said: “The growth and success we have achieved in recent years is very much the legacy of our work with Jim Scott, who helped us to understand the possibilities and opportunities available within the export market.

“Sadly, Jim passed away before our latest phase of growth had been fully realised. The success we are achieving today is a testament to his hard work and dedication.

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“In recent years, there has been a lot of uncertainty in the export market, but the success we’re achieving is bucking the trend and some much-needed good news for Britain’s manufacturing sector.”

Labfacility was set up in 1971 by Norman Riddett and now has two sites, in Dinnington and West Sussex, where it is headquartered.

The Northern Powerhouse Investment Fund is supported financially by the European Union using cash from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. It is managed by Finance for Enterprise.

Alan Scott, senior investment manager at FFE, said: “Businesses often find their growth plans stifled because they are unable to access lending from traditional high street lenders. Entering the export market can be lucrative but it isn’t without risk.

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“At a time when the manufacturing sector has been particularly hard-hit as a result of the uncertainties surrounding Brexit and possible future trade deals with the EU, Labfacility was quick to seize the opportunities offered by new export markets, but crucially targeted areas outside Europe, ensuring that the impact of Brexit could be mitigated.

“We have worked with Labfacility for a number of years and the approach they have pioneered has resulted in the company achieving significant growth in overseas markets, enabling the company to invest in new premises and jobs within South Yorkshire.”

Mark Wilcockson, senior manager, British Business Bank, said: “Since its launch in 2017, NPIF’s impact on businesses has been wide-ranging, providing funding to launch new products, employ new staff, enter new markets and acquire new facilities. We are pleased that NPIF is continuing to unlock the North’s growth potential by supporting small growing businesses with vital investment.”