A Cornish cabling manufacturer is set to expand into a new factory after securing £500,000 of funding and seeing a Brexit-related sales surge.
Logan Electronics has secured a £250,000 equity investment from the Cornwall & Isles of Scilly Investment Fund (CIOSIF), as part of a larger £500,000 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 impressive growth.
What else has CIOSIF invested in?
Sales almost doubled in the first six months of the company’s current financial year and the funding will help pay for a move to new premises in Redruth, in February 2022, from its current base in Ponsanooth, Truro.
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.
The business is ISO9001:2015 certified and participates in the UK’s SC21 programme aimed at creating world class supply chains for a range of demanding market sectors.
The workforce is highly skilled and IPC trained and led by a management team who have between them over thirty years’ experience in the sub-contract electronics industry.
Chas Holt, Logan Electronics chief executive, said: “We have an excellent team here in Cornwall and the new purpose built facility on a 4,000sq 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.”
Clive Davis, majority shareholder in Logan Electronics, said: “This funding is a key component of the first stage of Logan Electronics’ expansion plans which also involve a move to new premises early this year. The appointment of Chas Holt as chief executive last year has already led to a significant increase in sales with increased orders from existing businesses and a number of new customers.”
Ralph Singleton, head of funds Cornwall, at The FSE Group, said: “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 £40m CIOSIF provides debt and equity finance from £25,000 to £2m 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).
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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 £3.15m 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).