29th August 2007
CAT.79
SIGMALA SET TO DEVELOP NORTH AMERICAN MARKET FOLLOWING FUNDRAISING LED BY CATAPULT
Catapult Venture Managers Limited has completed a £250,000 investment into Lincolnshire-based Sigmala Limited, as part of a £500,000 funding package to enable the company to develop both the business and, in particular, develop the lucrative North American market.
The company manufactures equipment used to improve the speed and efficiency of converting machinery. These machines convert wide rolls of film, paper and other sheet products into narrower rolls and are widely used in the packaging industry - although domestic products like cling film and kitchen towels are also processed in this way.
In addition to the investment , Catapult has placed two key individuals into the business – chairman Mike Gulliford, who has worked in the sector previously; and Tim Walker, who joins as non-executive finance director.
Further funding of £50k has been provided by the East Midlands Early Growth Fund (managed by E Synergy), a Grant for Research & Development from East Midlands Development Agency (emda) of £140k over three years , as well as personal investments by new directors Mike Gulliford and Tim Walker.
Graham Mold, director of Catapult – managers of the EMRVCF (East Midlands Regional Venture Capital Fund) – commented: “Mike and Tim join a very strong management team led by managing director Lee Fenney, a commercially astute executive, with strong technical skills.
“The key members of the Sigmala team have extensive engineering experience in aerospace, F1, process control engineering and robotics, and have a track record in successfully exploiting technically innovative product for other people. They have identified the substantial converting market as ripe for innovation. The production efficiencies that Sigmala’s products generate provide the customer with vastly improved performance, as well as health and safety benefits.
“Five key product areas have been identified – RDA arms, powered unwinds, recycling unwinds, electric knife holders and electric chucks. The first product to be developed is an RDA arm, which has been trialled with a US manufacturer and shown to increase machine speed by 50%. Three further products will complete their development in 2007,” he added.
Lee Fenney commented: “The United States is the number one market for converting machines and the sales focus for the business will be principally North America. We have developed sound relationships with the right manufacturing and distribution partners in the US to enable us to serve this remote market effectively.
“Our products have a number of competitive advantages over products already in the marketplace. These principally come from the use of embedded servo technology, which leads to better control/tension, automation of set-up, faster speeds and better safety.”
Nick Wright of E-Synergy commented: “The combination of commercial acumen and design innovation really sets Sigmala apart. The strategy of developing product alongside their customers has really paid dividends, and the company already has a bulging order book that is obviously very attractive to investors.”
Jonathan Lowe, emda’s Head of Business Investment, added: “Sigmala is an example of an innovative company which shows real business potential, and such companies are vital to the economic prosperity of the region. We're delighted to be able to support this package of investment, alongside two of our key regional partners, Catapult and E-Synergy.”
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For further media information please contact Graham Mold at Catapult Venture Managers on 0870 116 1600 or 07768 148187; or Paul Shrimpton at PSPR Ltd on 0121 354 7311 or 07979 505322.
Notes to editors:
About emda
East Midlands Development Agency (emda) was set up in 1999 to bring more jobs and skills to the region and to make the East Midlands a better place to live and work. The new Regional Economic Strategy - ‘A Flourishing Region’, co-ordinated by emda and published in July 2006, sets out priorities for the region until 2020.
Its publication follows the most comprehensive consultation ever undertaken in the East Midlands where more than 1,400 stakeholders and partners, and thousands of members of the public had their say on the future of the region. The RES highlights the themes of productivity, sustainability and equality and is underpinned by ten priorities. The new RES builds on the previous two strategies ‘Prosperity Through People’ and ‘Destination 2010’. For more details visit www.emda.org.uk
About Grant for Research and Development
Grant for Research and Development is a DTI grant scheme designed to help businesses carry out research and development work that will lead to technologically innovative products or processes. The scheme is delivered in the East Midlands region by emda with grants of between £2,500 and £200,000 potentially available. Applications from individuals planning to start a businesses or Small and Medium-sized Enterprises (SMEs) already operating within the region are welcome. Visit www.emda.org.uk/grd for full details.
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