EV charging firm sparks £1.5m investment to develop UK network
An award-winning electric vehicle charging company is set to step up the roll-out of charging points across the country after securing a £1.5m investment.
Elmtronics, which is based in Consett and is the UK’s leading independent provider of charging points, has raised the funding from the North East Venture Fund (NEVF), which is supported by the European Regional Development Fund and managed by Mercia, and the Ingenious Infrastructure Ventures EIS Service.
The investment, which follows the announcement last week that the government is to ban the sale of new petrol and diesel cars from 2030, will allow Elmtronics to step up its work in underserved UK regions.
Elmtronics, which also has offices in Bristol, Manchester and London, supplies and installs public charging stations as well as those for homes and businesses. Its clients include Nike, the NHS, National Grid, FedEx, Taylor Wimpey and a number of city councils.
It has developed its own software – Hubsta – which is installed on the charging points and measures customers’ electricity use, allowing them to pay for and manage their account. The funding will enable it to further enhance the software and support the creation of 19 new jobs around the country in the next three months, almost doubling the size of its workforce.
Elmtronics was established in 2016 by former electricians Dan Martin and Anthony Piggott. Dan, the company’s CEO, said:
“The latest government announcement is another big step forward on the ‘road to net zero’. However despite the growing popularity of EVs with consumers and fleet users, a lack of charging points continues to deter many from making the switch. This funding will allow us to step up our activity to help build the all-important infrastructure. We hope to make Elmtronics a key player in the roll-out.”
Jan Oosthuizen of Mercia added:
“Elmtronics is laying the foundations for the green transport revolution. The company has been very successful in building its presence in the market and developing relationships with public bodies, fleet managers and strategic partners. Our investment will allow it to expand its team, take on new contracts and speed up the roll-out of charging points nationwide.”
Neil Forster, Chief Executive Officer at Ingenious, commented:
“We have been following the progress of Elmtronics for some time and are delighted to back a company that aligns strongly with our investment strategy as it is well placed in an under-served market, made all the more relevant by last week’s news of Government action to promote the use of electric vehicles. We are very much looking forward to working closely with Dan and his team.”
According to figures published by the Department of Transport, in October there were 19,487 public EV charging devices available in the UK, of which just 3,530 were rapid devices. Previous research has suggested that Great Britain will need almost 29,000 charging points by 2030, of which around 85% would need to be rapid chargers, though the data was produced before the government announced the 2030 ban on new petrol and diesel cars.
Richard Butts of Ward Hadaway provided legal advice to Mercia, while Lee Humble of Tait Walker provided financial due diligence, Bruce Douglas of Confidas People provided management due diligence and Thea Scott of Footprints Consulting the marketing due diligence. Zuleika Salter of WH Ireland acted as financial adviser and broker to Elmtronics.
NEVF can invest up to £1m in a single investment and up to £2.7m in total in any one business in Northumberland, Durham and Tyne & Wear. Funding is available to all companies with high growth potential and also pre-start enterprises, particularly those which are engaged in innovation or developing innovative business models.
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About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Capital Solution’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
Mercia has a strong UK regional footprint through its eight offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia has almost £0.8billion of assets under management and, since its IPO in December 2014, has invested over £90.0million across its direct investment portfolio.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
Ingenious is a Financial Conduct Authority regulated alternative investment manager that specialises in media, infrastructure, real estate and education. Founded in 1998, the company has raised and deployed over £9 billion of capital on behalf of clients across all the operating divisions since inception.
About The North East Fund
The North East Fund is a suite five venture capital and loan funds which was established in April 2018, to invest £120m in around 600 North East businesses in the period to March 2023. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers. Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org
The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities
About the European Regional Development Fund
The North East Fund will receive up to £58,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry for Housing, Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
About the European Investment Bank
The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme. The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. For more information, visit: http://www.eib.org/about/index.htm