Stop Press: 19 April 2011

Stop Press

19 April 2011

With the extended Easter break coming up, we thought we would take the opportunity to show you our new clients who are seeking funding. The recent Budget certainly stimulated interest from companies seeking funding and in the first two weeks of April new instructions are double that of recent levels. Whilst we continue to maintain a stringent quality control, we do hope that the wider choice will be of interest to you.

To help meet this challenge, Beer & Partners is holding an additional London Investment Fair on 14 June 2011, where potential investors can meet businesses seeking funding. Now in its eleventh year, the event has a proven track record of realising businesses’ funding plans, with a third of companies taking part successfully securing equity finance through the contacts they make.

Companies looking for working capital to expand or to replace banks’ depleting credit lines will have the chance to meet up to 150 private investors and institutions wishing to invest between £50,000 and £2 million. The event is open to any investor wishing to back investment-ready businesses, each of whom will be able to meet with up to 30 companies offering a variety of financial opportunities.

The event is held at Mark Masons’ Hall, 86 St James’s Street, London SW1A 1PL from 10am to 4pm. It is free for investors to attend while there is a charge of £850 plus VAT for companies. Full details of how to sign up are available online for investors at www.investmentforgrowth.co.uk and for companies at www.fundingforgrowth.co.uk.

This event is not an exhibition, rather a market place where investors and businesses can meet face to face and discuss mutually beneficial opportunities. Unlike many other forms of funding, backing from a private investor enables businesses to benefit from the involvement of an experienced individual. So they will not only benefit from much needed cash but also from invaluable support and consultancy to help them grow and succeed. For the investor, they can gain access to a wide range of vetted businesses that have the potential to offer high rewards in the current difficult economic situation.

Mike Weaver, CEO
Beer & Partners Limited

CURRENT OPPORTUNITIES

Events Diary

(click on titles for full event details)

Investor Meeting with HBJ Gateley Wareing
Manchester
10 May 2011
17:00 - 19:15

Investor Meeting with Ashfords LLP
Exeter
17 May 2011
from 18:00 onwards

Meet the Team Behind Breakthrough Diagnostics
London
17 May 2011
Morning Session: 11:00 - 13:00
Afternoon Session: 14:00 - 16:00

Angel Investment at Aston Martin
Gaydon, Warwick
25 May 2011
11:00 - 16:45

Investor Meeting with PKF
Nottingham
9 June 2011
(times TBC)

Investment Fair
London
14 June 2011
10:00 - 16:00

'Securing Finance' Seminar
London
22 June 2011
18:00 - 20:30

Investor Meeting with Eversheds - July
Birmingham
14 July 2011
(Time TBC)

Angel Investment at Aston Martin
Gaydon, Warwick
17 August 2011
11:00 - 16:45

News

Tuesday 17th May:
Meet the Team Behind Breakthrough Diagnostics

Our colleagues Simon Heywood and Richard Silberbauer are hosting a company presentation in the morning and afternoon of the 17th of May.

The Company is generating revenues from its new generation, high-volume diagnostics technology and is looking to augment the £600,000 raised so far in its pre-IPO funding round. They have recently delivered the first system for their breakthrough Mastitis test and are expecting orders for a series of profitable installations aimed at this commercially significant disease. Other diseases will follow through partnership agreements - including human diseases.

If you are an investor and free on the 17th, please click here to register or feel free to call Simon on 07831 655 533 for further information, or email: heywood@beerandpartners.com.

Investor Meeting to be held in Exeter

Two of our Beer associates from the South West Region have organised an Investor Meeting to be co-hosted with Ashfords LLP.

Our registered investors are invited to attend the meeting on Tuesday 17th May from 6pm in the evening. Four companies are scheduled to present from a variety of sectors, including companies that deal with Building Materials, Eco-friendly Housing, Media and Diving. The companies themselves are based in Devon and Cornwall. The evening will be rounded off with drinks, canapés and networking.

Further information and details on how to book a place at this event can be found on our website Here.

Alternatively, please feel free to directly contact either:
Meredydd Jones on 07768 022 696 / mjones@beerandpartners.com
or Malcolm McGregor on 01823 667 972 / mcgregor@beerandpartners.com.

New Series of Fund-Seeking Events on the Horizon for London, Midlands & North

We are planning a series of events titled 'Guide to Securing Business Angel Finance' in London, the Midlands and Manchester within the next two months.

If you (or any fund-seeking companies you may know of) would have an interest in this series, please contact either Doug Garforth garforth@beerandpartners.com for London events or Steve McEwen or events within the Midlands and Northern regions (mcewen@beerandpartners.com).

Generally speaking, over the last 12 months, new investors have continued to join our database at the rate of one per working day. In the last month we have seen a 50% increase in new funding rounds concluded compared with January and February. Interest has accelerated even in the last week following the UK 2011 Budget. We hope that this Budget, with measures to encourage investment into small businesses, will prove to be the pivotal point in the economic recovery.

We continue to actively seek companies who require funding either to expand, replace withdrawn bank facilities or to take their product or idea to the market..

If you or anyone you know are interested in finding out more generally about raising finance, please visit our Funding site (click here) or contact Head Office on 0207 329 4884.

Next Investment Fair on 14th June

Our March Investment Fair proved to be a success with 243 face-to-face meets between investors and clients, which works out at an average of 8 investors per client. We have decided to run two more this year, with the next booked for Tuesday the 14th of June.

For over 10 years, Beer & Partners have been running the Investment Fair, attracting up to 200 of our private investors and institutions wishing to invest between £50,000 and £2m. The doors open to our investors at 10am and close at 4pm.

If you know of anyone who might be interested in coming along to the Fair as an Exhibitor, please Click Here for further information.

If you would like to come along as an Investor, further details can be found on our website; please Click Here .

For a general chat on how the Fair can work for you, please contact Head Office directly on 0207 329 4884 and we'll be more than happy to answer any queries you may have.

Property Division

Property Division

High Return Investment Opportunities in Property.

Beer & Partners Property Division specialise in sourcing all types of finance for experienced Property Companies across the UK and Europe.

Our deal size ranges from £1 – £20m with the minimum suggested investment value per deal being £50,000.

Our ability to facilitate syndication means that there are opportunities for investors at every level – in terms of investment value and experience. Syndication also gives you the opportunity to spread your risk and get involved in a number of deals if you should wish...
Please click here for further information

Associate Spotlight

Doug Garforth

Doug has an extensive background operating at CEO, main Board Director and senior management levels in both the public and private sectors. Within small, medium and large enterprises and in both corporate and private ownership, he’s been involved with companies including P&O, Bovis, Nissan and Volvo. He acted as CEO in the privatisation of a Government Department and Doug also runs his own consultancy practice.

With experience across all aspects of business in numerous industry sectors, his operational management and consultancy roles have included extensive experience of business restructuring, mergers, acquisitions, funding, business brokerage and the post-acquisition management of transitional change.

He is a qualified accountant with an MBA and a degree in decision sciences. He has also made frequent appearances on BBC Radio as a business advisor.

Doug is married with three grown up daughters and lives near Cambridge. He enjoys playing croquet and likes to escape to his second home in France, which overlooks the sea. He joined Beer & Partners in February 2010 and is part of Doug Garforth our London and East Anglia team. He has two entries in this week's Stop Press within the Retail and Business Services sectors. Additionally, Doug is actively involved with running frequent 'Securing Finance' seminars as guidance for fund-seeking companies (see Events at the top of this column for further information).

Click here to contact Doug

NOW IMPROVED OIL EXTRACTION
	Sector: Funds Sought: Location: Stage: Ref. Number:	Environmental & Energy £3m Outside UK Expansion 50637

Since 2009, our client has been buying oil leases in California, typically farmland, where low-volume nodding donkey extraction has been going on for decades. With the recession, many farmers cannot raise capital to improve their wells. Hence the opportunity to acquire them at the lowest prices in 30 years and re-drill to increase production from say 1 barrel/day to 15. Modern geoseismic surveys are very accurate so new wells are perfectly sited. New 2011 survey shows a 90% probability that oil will be there in the quantities stated and there is more recoverable oil than previously shown, up to 50% more. The Management have over 100 years relevant experience. Leases are already owned and funding of £3million will be used to drill 8 new wells taking 3 months followed by production. Storage tanks onsite and offtake contracts negotiated. Dividends paid in the first year as oil/gas is delivered against cash, projected to exceed 25% pa. based on $90+ per barrel . Scalable, once packs of leases have been improved, trade sales to bigger players can lead to capital growth retaining upto 50% of each well whilst income and dividends continue to grow. Exit in year 4-5 to a major player, as is continued growth by redrill, improve, and on sale of leases. Concept proven by successful sale to larger company at substantial profit whilst retaining 50% stake. This project can be considered by investors looking for an income now on funds as well as capital growth. Leases are owned by the company and provide asset backing to the investment. Breakeven: $39/barrel. Contact: Arthur Chamberlain - 020 7993 2440 - chamberlain@beerandpartners.com

MAJOR FUND-BACKED PROPERTY DEVELOPMENT COMPANY SEEKING FUNDING FOR PRE-LET RETAIL DEVELOPMENT
	Sector: Funds Sought: Location: Stage: Ref. Number:	Property (inc. Developing) £1,060,000 South East Other 51280
This well-established and award-winning property development company seeks investors to co-fund a pre-let retail development in Essex. The company is under offer to acquire the freehold interest of a part-occupied shopping centre, on a subject to planning, subject to pre-let and subject to vacant possession basis. An Agreement to Lease and Lease have been agreed with a major supermarket chain, which the company plans to forward fund on securing planning permission and vacant possession. The company has been actively working on the project since mid-2010 and now seeks funding of the costs necessary to take the scheme through planning and to achieve vacant possession. Based on successful completion, initial capital would be returned to the investors with a first-priority return of 10% IRR, plus a 50% share of profits. Planning and vacant possession are expected by month 18 and practical completion 12 months thereafter. Forecast project profit exceeds £5m, representing a profit on cost of 421% and a profit on proceeds of 81%. Forecast investor IRR is 65%, a cash multiple of 2.84 in 30 months. Contact: Dave Flockhart - 07815 931 414 - flockhart@beerandpartners.com

IN REVENUE OPPORTUNITY TO INVEST IN MARINE LEISURE
	Sector: Funds Sought: Location: Stage: Ref. Number:	Leisure £100,000 London Expansion 51289

Our client has a revolutionary, patented boat design where the boat folds on itself and the trailer is inclusive in the hull of the boat. These features enable easy launching, trailer-less parking, easy storage and more stability both on the water and on the road. It can be sailed, motored or rowed, and its versatility and stability makes it ideal as an entry-level craft. it is manufactured in the UK. The company is looking to raise £100,000, which will be the last fundraising before profitability is achieved. Yamaha, the largest seller of outboard motors in the UK will help distribute the boat through their marine dealer network in this country. Distributors are also in place in Germany, Holland and Turkey; and ones in France and Spain will be signed up within months. The company has substantial prospective orders already in place for this year's season. Investment funds will be used to increase the tooling to increase production capacity, and to expand on the encouraging start made at the Miami Boat Show to break into the US market, which is by far the largest market for the boat in the world. Excellent management and advisers, coupled with a strong patent position, make this an interesting proposition. Contact: *Dwight Makins - 0207 329 4884* - *makins@beerandpartners.com*

MEDICAL DIAGNOSTICS
	Sector: Funds Sought: Location: Stage: Ref. Number:	Medical £500,000 East Anglia Pre-IPO 51282

Hospitals still need better ways for monitoring critically ill patients in real-time. This proven microchip technology for doing so originated with a major multinational and has been acquired by this company in return for shares. The company intends to float on AIM by the end of this year. The proven, patented technology provides immediate measurement of the oxygen, glucose and other important parameters in a patient’s blood. Three applications have been developed so far: monitoring patients in Intensive Care (12m p.a. worldwide), use during heart/lung operations (1m operations p.a.) measurement of anaesthetic levels during surgery and in sedation (13m operations p.a.). Regulatory approval for each of these has either been obtained for initial products or is expected within the next nine months. Other applications are under development. The Company has a full commercialisation deal with Sorin, the world's largest supplier for heart/lung bypass equipment, which should lead to rapid commercial take-up. Discussions are under way with the world leader in intensive care equipment about incorporating the new diagnostic product into their product range. Both of these companies have already made equity investments in the company. Sales are forecast at £0.5m this year rising to £65m in 2015 producing PBT of £23m. A £4m funding round is well under way to allow the company to reach several value enhancing milestones before the float. New investment can be either as a loan convertible into shares at a 30% discount to the IPO price, or as ordinary shares eligible for EIS at a substantial discount to the planned IPO issue price. Contact: *Lawrence Fenelon - 01572 823 267* - *fenelon@beerandpartners.com*

PROFESSIONAL, HIGHLY-SCALEABLE HANDY-MAN AND BUILDING SERVICES BUSINESS
	Sector: Funds Sought: Location: Stage: Ref. Number:	Business Services £350,000 London Early Stage 51046

This already established business is rapidly making its mark and aiming to become the brand leader for handy-man and building services in London. By providing a high standard of professional services to the public, business and property sector the proven business model is creating rapid expansion opportunities. High quality service and customer delivery standards, in an otherwise poorly served market, present considerable opportunities for scaling up of this high-margin operation. Under the dynamic management team the business has already achieved £500,000 of revenues to date and with further investment in marketing, branding and infrastructure development in the Head-Office, the training centre and workshops, rapid and substantial growth to turnover in excess of £3m in year 3 is forecast. Investor participation is welcomed in the further strategic development of the business and the business presents investors with the opportunity for high returns and a potential high yield exit through a trade sale in 4-5 years time. For the target equity investment of £350,000 a significant stake in the business is offered. Some early investment has already been secured. An equity/debt mix would be considered. EIS application is under way. Contact: Doug Garforth - 07795 360 713 - garforth@beerandpartners.com

21st CENTURY, MULTI-LOCATION SHOESHINE SERVICE
	Sector: Funds Sought: Location: Stage: Ref. Number:	Retail £160,000 London Early Stage 51179

This currently successful business represents a substantial growth and retail revenue-generating opportunity, positioning itself to expand further throughout the UK in airport & train terminals and high-end retail spaces, City office complexes and other high footfall business locations. The entrepreneurial owner has already invested £325,000 to-date in developing a unique, differentiated modern-day shoeshine booth and creating strong customer acceptability and experience. Revenues show growth from the current anticipated forecast of £100,000 in year 1 to over £2m in year 5 at healthy margins and PBT – including the potential for digital advertising and other new revenue streams. Innovative, entrepreneurial & high profile (BBC Dragons’ Den offer made and declined 2009) this business is set to yield high returns and a strong exit from c.4 years through a trade sale to innovative retailers in related retail sectors, or others in the rapidly developing market for grooming-on-the-go services. Investment is sought to implement the growth strategy, developing and introducing a completely newly designed concession and customer offering, EPoS technology and the re-launch of the existing company under a new brand. A significant equity stake is offered for a £160,000 investment with the opportunity for investor participation in the further development and support of the business. Investors with retail concession experience and contacts would be especially welcome, though not essential. EIS application is under way. Contact: *Doug Garforth - 07795 360 713 - garforth@beerandpartners.com*

PROPERTY DEVELOPMENT, 1.5% PCM - FIRST CHARGE

Sector:
Funds Sought:
Location:
Stage:
Ref. Number:

Property (inc. Developing)
£500,000
North West
Other
51291

Our client proposes the conversion of a large property in a popular residential area of Liverpool into eight high-spec 2 bedroomed apartments approximately 75m2 per unit.

£500,000 is required to purchase and convert the property. Interest on finance provided will be calculated at 1.5% per month from the date of initial deposit and rolled up for payment with the principal, on refinancing of the property - subject to a minimum overall return of 15%. A second charge over the existing property portfolio can be offered if required.

Financial Summary:

Land and Building acquisition £255,000
Development Costs (inc contingency by line) £254,000
12 month Financing Costs £90,000
Total Cost of Development £619,000
Gross Developed Value (GDV) £900,000
Profit on Development £281,000
% Profit on GDV 31%

Exit Strategy:

Preferred investor exit is from the proceeds of refinancing the property when let. Projected sales values provided by local agents suggest that exit by sale of individual units is a very viable alternative. .

Contact: Matthew Lawrence - 07725 589 136 - lawrence@beerandpartners.com

Welcome to Beer & Partners Investor Site

Stop Press: 19 April 2011