A Hirwaun firm that provides research and development support to aquaculture companies globally has secured a new debt facility from the £135m Investment Fund Wales (IFW) to support further expansion.
Pontus Research, which is celebrating its 10th anniversary, has received £80,000 in funding from the IFW’s small business loans fund element, which is managed by BCRS Business Loans on behalf of the economic development bank of the Ƶ Government, the British Business Bank. It offers debt ranging from £25,000 to £100,000.
Pontus Research provides R&D support to customers developing feeds and feed ingredients and additives for aquaculture. It run trials with a wide range of species under a variety of conditions, from cold water to warm water, and from fresh to full strength seawater.
Pontus founder and chief executive, Jack James, said: “Up until the pandemic the business was hitting all its targets – we’d raised £1.2m from private equity investments, grant funding from the European Maritime and Fisheries Fund and private and public debt funders. However, buying the 2,600 square metre site complete with a 1,000 sq mt building, and the subsequent investment, came at a time that no-one could have predicted, and we have been working hard to get on an even keel ever since.
“During this past year pieces have been slowly fitting into place, but cashflow has remained an issue for us. Put simply, a few months back I wasn’t able to see a near future where the company was healthy enough to genuinely celebrate our ten-year milestone.”
The new financial package from the IFW has seen Pontus Researc safeguarding all employee jobs (14) will backing its next phase of projected growth.
Mr James said:“This finance, at this time, has been very important. Cashflow for any business is a huge issue and nobody could have forecast the pandemic and just how much it would affect us, along with millions of other businesses. With this funding I am looking forward to getting the business to the position it should be in. We have a great pipeline of research projects, whilst our recent expansion and addition of a research-scale feed mill is forecast to grow our customer base for R&D work and feed production. Alongside this, we are developing a footprint in Asia, after opening a Singapore base and successfully operating that for over two years. I can’t thank BCRS and the British Business Bank enough for their support and I am hugely excited to see how the business develops, both in Wales and overseas.”
Graeme Lewis, business development manager at BCRS Business Loans, said:“Pontus Research came to us at a time that was pivotal, and we were only too happy to work with Jack to find a finance solution that works and would benefit the business in the short, and long term. We are delighted that this finance provided Jack with the buffer he needed to protect his business.
Bethan Bannister, senior investment manager, nations and regions funds at the British Business Bank, added:“The £130m Investment Fund for Wales is there to support Welsh businesses with growth ambitions to realise their goals. The pandemic had meant that Pontus Research had experienced a few bumps along the way, however with the backing of BCRS and the Investment Fund for Wales they now have a clear path forward to scale and grow. We look forward to watching their continued success.”
The large element debt fund for the IFW, which ranges from £100,000 to £2m, is managed by Development Bank of Wales subsidiary FW Capital. The IFW’s equity element, which has a pot of £50m,is fund managed by Foresight.
