1st July 2010 - Staying On The Rails With Angel Fund

A Tyneside manufacturing firm has landed significant investment to help turn its revolutionary new guardrail system into reality.

Preforma Limited, of Jarrow, has received £200,000 from the North East Angel Fund – one of the six regional funds set up earlier this year under the Finance for Business programme, a programme run by North East Finance Limited, the holding fund manager.

The company hopes its patented design for modular guardrails will be used on projects such as the new Tyne Tunnel and at sports stadiums and power plants across the world.

The investment is the first made by the North East Angel Fund, which is operated by Rivers Capital Partners Limited and managed by E-Synergy Limited. The investment includes £50,000 from Newcastle-based engineering group British Engines Limited.

Gary Smith, Managing Director of Preforma Limited, said: “I am very pleased to have achieved this investment from the North East Angel Fund. The money will be used to help us develop our product and sell it all over the world from our base here in the region.

“The investment process was very professionally handled throughout and it was clear that the Rivers Capital team understood my business and the opportunities that are available to it.”

John White, Chief Executive Officer of E-Synergy Limited and Rivers Capital Partners Limited, said: “We are delighted to have completed the first deal from the North East Angel Fund. We spotted the product’s potential immediately and our team have worked very closely with Gary to get the deal done.

“I’m sure that Preforma, which is just the type of business which we are looking to invest in, will go on to become the success which we all believe it can be.”

Dale Fowler, a business consultant who is joining Preforma Limited as their Financial Director, added: “It has been a pleasure to assist Garry raise finance for an extremely well designed product that will be welcomed by industry for its quality and labour saving uses.”

Alex Lamb, Chairman of British Engines Limited, added: “We are pleased to have the opportunity to invest in this new venture. We expect Preforma to have a bright future and look forward to sharing in its success.”

Ward Hadaway provided legal advice to Rivers Capital Partners Limited and RTC North provided business advice to Preforma Limited.

The Finance for Business North East Fund, which is part of the Government’s Solutions for Business Portfolio, is funded by the European Investment Bank, European Regional Development Fund 2007-2013 and One North East.