Scots firms work with SIB to access £93m
The Scottish Investment Bank (SIB), the investment arm of Scottish Enterprise, helped more than 100 Scottish-based companies access investment of almost £93 million during 2012/13.
£32.4 million of the overall investment came from SIB’s own funds (see notes to editors for more detail); which helped leverage £60.4 million from private sector investors. That in turn supported almost 4,000 Scottish jobs.
“Access to finance continues to be challenging for companies,” said Kerry Sharp, Head of SIB. “Bank of England reports show a continued reduction in lending to UK businesses, and weaker demand for finance among small and medium-sized enterprises.
“Some SMEs still lack the confidence to invest in growth plans; others find the process of securing finance challenging. But as the economy begins to show signs of recovery, we will help meet those challenges by supporting better access to finance for growth and export companies.
“Our annual results show we are already helping to deliver much-needed equity and debt funding to companies that are among the best future growth prospects in Scotland. That’s something we intend to continue, and to build on in years to come. ”
As signs of economic recovery continue to grow, SIB is seeing the results. Together with its partners, it has been part of six successful trade exits this year, contributing to overall income in excess of £12 million.
It has also seen increased activity around the Scottish Loan Fund, in which it is the cornerstone investor. More than £12 million has been invested into eight established companies, now well on their way to achieving growth and expanding international activities.
The Renewable Energy Investment Fund, which SIB deliver on behalf of the Scottish Government, completed six deals this year; investing around £4.5 million in renewables projects. Those deals also carry future commitments, which bring the total to £6.4 million. It’s estimated that the initial REIF investment could unlock around £28 million in additional funding as the projects develop.
And proof that Scottish-based companies are feeling more confident about trying to find investment is offered by the increased amount of work for SIB’s financial readiness specialists, who worked with 460 companies last year to help them access the finance to sustain and grow their business.
“I’m absolutely delighted with the work we’ve done in 2012/13,” said Kerry Sharp. “There’s a lot to be optimistic about, and we’re building on those successes to keep supporting Scotland’s companies as they emerge from the recession.
“We’re fortunate to have the support of the European Regional Development Fund and our private sector co-investment partners, LINC Scotland, as well as Highlands and Islands Enterprise and the Scottish Government. Working together, we can make sure Scotland’s businesses can continue to find and make use of the finance they need."
You can read the full report here.