PGF SME Growth Programme for the Leeds City Region 2015 - 2022
2
Key Targets Outputs • Number of new businesses started: 60 • Number of established businesses supported to grow: 60 • Number of jobs created: 650 of which 606 have already been clearly identified (see appendix 1 for sample) • Number of apprenticeships created: 175
Outcomes • • • •
Established businesses grow profit margin by at least 10% on average Established businesses grow turnover by at least 20% on average 60% of the apprenticeships go onto secure full time employment (105) 80% of the businesses supported report strengthening of business performance
Business Proposition There is a huge gap in the funding process for SME’s, specifically for mandates in the £250k to £2.5m space. Businesses of this size are not big enough for investment by most venture capital and private equity investment houses but too big for angel investors. This is our core market.
Company Category
Employees
Turnover
<250
≤ £ 37 m
Small
<50
≤ £7 m
Micro
<10
≤ £1.4 m
Medium-sized
European Commission definition of SME’s. Current conversion rate of Euro to £ = 0.729308 (7 April 2015)
3
DeLivery Credentials PGF is a rapidly growing, diverse portfolio of investments formed in 2012 by three partners combining their business interests across profit making and not for profit organisations Our goal is profitable growth through the launch of home-grown brands and strategic acquisitions. With a focus on high skilled and well paid sustainable jobs across all industry sectors but with a focus on Key Industry Sectors for the Leeds LEP including Creative and Digital; Financial and Professional; Innovative Manufacturing and Low Carbon Manufacturing etc. We have plans to build into a substantial regional investment vehicle that will see PGF at the heart of the ongoing movement turning Yorkshire into a Northern powerhouse of private sector growth, enabling more opportunities and creating the wealth and jobs that the North needs to compete with London. PGF is seeking to build a long-standing partnership with the Leeds City region and other key stakeholders, to secure this vision and where private sector investment is matched by LEP investment £1:1. PGF currently employs over 100 people in our Manchester, Liverpool, Leeds, Livingstone, Edinburgh, Durham and Birmingham offices. All of our businesses have been built from our Headquarters in Wakefield. When the group was
formed, the turnover was £7m. Our first year’s combined accounts broke £14m, our second set of accounts being prepared now will be close to £25m and forecasted figures for the third year are £50m We are the founders of Yorkshire’s Got Talent - http://www.yorkshires-got-talent.co.uk - a competition to discover and help budding businesses. PGF steadfastly believe in making a real difference to people and communities. As part of this commitment, we have a long-term ambition to move to a ‘NEET-free’ Leeds City Region through the creation of apprenticeships and continuation of investment in people and training.
4
PGF Partners
SHIRLAWS
Assay Advisory
PwC
Founded in 1999, Shirlaws has vast experience in business coaching to grow and scale ventures. They provide a diverse mix across multiple sectors from large multinational corporations to global brands, through to family offices and serial entrepreneurs.
Are a partnership of former business owners, operating executives and investment bankers with offices in Australia, Canada, Europe, Israel, United Kingdom and the United States. They are part of the IMAP network – and are in the global top 5 for transactional support in the sub £100m M&A deals completed.
PricewaterhouseCoopers (trading as PwC) is a multinational professional services network. It is the world‘s second largest professional services network, and is one of the Big Four auditors.
Their business coaching arm is one of the four largest globally with a network covering 37 countries. Shirlaws business coaches take the many complex issues involved in running a business and help make them simple and easier to manage. They work alongside PGF to guide our businesses to achieve longterm, profitable and sustainable growth. http://www.shirlawsgroup.com
The founders developed the Assay Advisory service offering after 20 years of experience building their own companies. They have a deep understanding of how middle market businesses operate and have advised 3,000 businesses in over 30 countries. Assay’s methodologies help us to build value, increase profitability, mitigate risk, achieve growth and build strategic capabilities within our companies. http://www.assayadvisory.com
PwC have identified PGF as a company that are on a rapid growth trajectory, offering us a qualified and commercially focussed accountant - a Financepartner – who meets with us regularly to act as mentor and adviser. PwC help us to identify and manage the issues that arise in growing a business – ensuring we have a resilient and efficient operating model, the right finance to grow and the right skills for expansion. http://www.pwc.co.uk
5
[ptg] The Institute of Recruiters
LNT GROUP
Project Director Phil Taylor-Guck
The Institute of Recruiters (IOR) represents the highest standard mark in British recruitment. As the professional body for HR, Agency & In-House recruiters, it is the voice of people working in the recruitment and retention process that fall into the areas of agency recruitment, corporate (in-house) recruitment and HR.
In 2011, Founding Chairman, Lawrence Tomlinson was awarded two separate honorary doctorates by Yorkshire universities and recognised as one of the top 10 most influential leaders within the healthcare industry. In 2012 Lawrence was awarded overall UK Director of the Year by the Institute of Directors. As ‘Entrepreneur in Residence’ with the Department for Business Innovation and Skills, Lawrence advises Government Ministers about the role of SME’s in kick starting the economy.
Phil Taylor-Guck is a serial entrepreneur from Mirfield, West Yorkshire, CEO, who co-founded the PGF Group to invest, grow, scale and accelerate concepts and businesses.
Through his role as an Ambassador of The IOR, Phil Taylor-Guck, co-founder of the PGF Group, provides guidance, training, education & networking opportunities to those working in Recruitment & HR. This role sees him building high calibre strategic partnerships with major industry companies and helping to connect members both nationally and internationally. http://www.theior.org.uk
PGF is working with the LNT Foundation by providing 8 weeks of mentoring and coaching to local social entrepreneurs who are applying business techniques to address specific local social problems. http://www.lntgroup.co.uk
Phil is passionate about creating jobs, developing a skilled and flexible workforce and helping businesses to secure investment and deliver prosperity into the region.
6
Value for Money Benchmarks Unit cost per job created: The CRESR unit cost per job figure of £22,293 (CRESR, ‘Valuing the Benefits of Regeneration’, 2010, adjusted to 2013 prices. 650 jobs @ £22,293 = £14,490,450
Unit cost per business supported: ‘Unless a financial grant or loan scheme is proposed we suggest that the lower quartile figure of £3,500 per business start-up is used.’ (England ERDF Programme 2014-20: Output Unit Costs and Definitions, Regeneris Consulting, Dec 2013, para 4.3. At 50% intervention rate = £7000 Output Descriptor
Number
£
Value For Money
Number of new businesses started 2015-2022
60
200,000
200,000/60 = £3,333
Number of established businesses supported to grow 2015-2022
60
300,000
300,000/60 = £5,000
Number of jobs created (see appendix 1 for sample)
650
13,500,000
13,500,000/650 = £20,769
Number of apprenticeships created
175
1,000,000
1,000,000/175 = £5,714
Support From Wakefield Council PGF would very much like Wakefield Council to endorse our proposal to the Leeds City Region LEP and also to give us a clear steer to the most appropriate pot of match funding - e.g ERDF or Regional Growth Fund etc.
7
APPENDIces
8
APPENDIx 1 Existing Leeds City Region companies signed up to PGF SME Growth Programme We have already identified and signed up 10 companies and 606 jobs to our Growth Programme. Here are 3 of the 10 as examples:
Name of Company: PGF Description: Business Infrastructure Agency providing access to business services Last financial year turnover: ÂŁ25M Projected turnover from current financial year: ÂŁ50M Number of existing staff: 101 Number of and types of jobs to be created: 139
2015/16
2017
2018
2019
2020
2021
2022
CTO
1
0
0
0
0
0
0
Lead Software Developer
4
1
1
1
1
1
1
Software Developer
6
3
3
3
3
3
3
UX Designer/Front-end
1
0
0
1
1
0
0
Data Analyst
1
1
0
0
1
0
1
Mobile Technology Developer
1
1
1
0
0
0
0
E-commerce Developer
2
0
2
0
0
1
0
Helpdesk Operator/IT Support
1
1
1
1
1
1
1
Head of Administration
1
0
0
1
0
0
0
Administrators
2
1
2
0
0
0
0
Finance Director
1
0
0
1
0
0
0
Finance Officer
2
0
2
1
0
0
1
IT
Administration
Accountancy & Finance
9
2015/16
2017
2018
2019
2020
2021
2022
HR Director
1
0
0
1
0
0
0
HR Officer
2
1
0
0
1
0
1
Head of Facilities Management
1
0
0
1
0
0
0
Facilities Executive
1
1
1
0
1
0
0
Procurement Manager
1
1
0
0
1
0
0
Head of Legal Compliance
1
0
0
1
0
0
0
Legal Compliance Officer
1
0
1
0
0
1
0
Financial Advisor
1
1
0
0
1
0
0
Events Director
1
0
0
1
0
0
0
Events Manager
1
1
0
0
1
0
0
Events Conductor
1
0
0
1
0
0
0
Training & Development Manager
1
0
0
0
0
0
0
Trainer
1
0
0
0
0
0
0
Communications Director
1
0
0
1
0
0
0
Marketing Manager
0
0
1
0
0
0
0
PR Manager
0
0
0
1
0
0
0
PR Executive
1
1
0
0
1
0
0
Copywriter
0
1
0
1
0
0
0
SEO Specialist
1
0
0
1
1
0
0
Social Media Officer
1
0
1
0
1
0
1
Pay Per Click Officer
1
0
0
1
0
0
0
Internal Comms Manager
1
0
1
0
0
0
1
Graphic Designer
1
1
0
0
0
0
0
Head of Sales
1
1
0
1
0
0
0
Sales Officer
4
1
0
2
0
0
1
Customer Service Manager
1
0
1
0
0
0
1
Sales Support
2
0
0
1
0
0
1
HR
Facilities Management
Legal Compliance
EVENTS
TRAINING
Marketing
Sales
10
Name of Company: Multiwork Passport Description: An innovative company with unique technology simplifying the process of supporting individuals into paid employment. Last financial year turnover: n/a (start-up) Projected turnover from current financial year: n/a (start-up) Number of existing staff: n/a (start-up) Number of and types of jobs to be created: 9 2015/16
2017
2018
2019
2020
2021
2022
Head of Multiwork Passport
1
0
0
0
0
0
0
Software Developer
0
0
1
0
0
0
0
Systems Administrator
1
0
1
1
0
0
0
Front-end Developer
0
0
0
1
0
0
0
UX Designer
0
0
1
0
0
0
0
Product Owner E-commerce
0
0
0
1
0
0
0
Web Developer
0
0
0
1
0
0
0
11
SPECTRUM
Name of Company: Spectrum Contracting Description: Recruitment of temporary and permanent workers with a particular specialism in the construction industry. Last financial year turnover: £16M Projected turnover from current financial year: £33M Number of existing staff: 60 Number of and types of jobs to be created: 136 2015/16
2017
2018
2019
2020
2021
2022
Managing Director
0
0
1
0
0
0
0
Regional Director
0
0
2
0
0
0
0
Manager/Team Leader
4
4
4
4
4
4
4
Senior Consultant
8
8
8
8
8
8
8
Labour Manager
8
4
4
4
4
4
4
Payroll Administrator
2
1
1
1
1
1
1
General Administrator
4
1
1
1
1
1
1
Indicative pay scale: Head/Director: £50-60,000 Executive - £20 -25,000
PGF KNOW HOW
PGF 5 fryers way Silkwood park Wakefield WF5 9TJ