Logan Electronics has secured a £250k equity investment from the Cornwall & Isles of Scilly Investment Fund (CIOSIF), as part of a larger £500k funding round.
The deal was led by the FSE Group, the appointed fund manager for CIOSIF, with the investment enabling Logan Electronics to continue its recent growth (sales almost doubled in the first six months of the company’s current financial year) and help fund a move to new premises in Redruth in February from its current base in Ponsanooth.
Logan Electronics is an independent sub-contractor specialising in the manufacture of electronic and electrical cable and wiring sub-assemblies. A mixture of Brexit and Covid-19 has led UK businesses to look more closely at the supply chain and Logan is starting to benefit from increased demand from businesses that previously may have used overseas competitors.
Logan was established in 1980 and supplies a range of Blue Chip customers in a wide range of sectors including aircraft antennas, industrial pumps, water monitoring equipment, vending machines, property security and control and monitoring equipment.
CEO, Chas Holt, said: “We have an excellent team here in Cornwall and the new purpose-built facility on a 4,000 sq m site in Scorrier, Redruth, will enable growth to continue. I am thrilled to be leading the business through this exciting time when supply chain management will be key to economic prosperity in the UK.”
Ralph Singleton, head of funds, Cornwall at The FSE Group, added: “We have been tracking the progress at Logan Electronics for some time, and with some like-minded co-investors who also see the longer-term trend in ‘onshoring’ sub-contract manufacture, we are pleased to be providing funding. The business now has all the tools in place to take advantage of the opportunities that lie ahead.”
The £40 million Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25k to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).
John Acornley, LEP non-executive director and chair of the CIOSIF Advisory Board, said: “We are pleased to support a manufacturing business growing in Cornwall. The move to new premises in Redruth is also being supported by the BIG Productivity programme, a £3.15 million investment fund, financed by the European Regional Development Fund (ERDF) and delivered by Cornwall Development Company. It is pleasing to see two local growth programmes working together for the benefit of Cornwall.”
CIOSIF is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020.
Advisers on the transaction were: Field Seymour Parkes (FSE legals) and Stephens Scown (Logan Electronics legals).