A Middlesbrough firm has secured a contract worth nearly £1m with backing from the £10m Tees Valley Catalyst Fund and Lloyds Bank Commercial Banking.
Industrial Technology Systems (ITS), which provides process control and management information systems, has secured work on a new £70m Combined Heat and Intelligent Plant (CHiP) in London.
A £200,000 loan from the Tees Valley Catalyst Fund matched by funding from Lloyds Bank Commercial Banking enabled ITS to provide a performance bond required to win the contract.
The fund, which is the brainchild of Tees Valley Unlimited and backed by the Government’s Regional Growth Fund, is managed by award-winning fund manager, FW Capital.
It provides loans to help companies fund the performance, warranty bonds and guarantees that are often required when tendering for new contracts.
ITS, which employs more than 30 people on Teesside, has been sub-contracted to design and install process control systems on the CHiP project. The six-to-nine-month contract is worth £800,000 to the firm and will create new jobs in the Tees Valley.
Malcolm Knott, managing director of ITS, said: “The Tees Valley Catalyst Fund is a brilliant idea. It has meant we have not had to tie-up our capital, which could have hampered us operating effectively.
“FW Capital has been extremely supportive and its speed of response enabled us to provide the bond and as a result win this prestigious contract, which we hope will open more doors and lead to us securing work on other similar projects.”
Stephen Catchpole, managing director of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley, said: “Many established Tees Valley businesses, such as ITS, have the technical expertise to bid for large new contracts, but having to provide substantial financial guarantees can hinder that process.
“Tees Valley Catalyst Fund has been set up to overcome that obstruction and help firms win significant contracts as is demonstrated by the loan to ITS.”
FW Capital investment executive, Nicky Atkinson worked with ITS and Lloyds Bank Commercial Banking to structure the loan.
She said: “Winning this contract is a major boost for the staff and management team at ITS. It’s an established company capable of undertaking larger contracts and loans from the Tees Valley Catalyst Fund and Lloyds Bank Commercial Banking have enabled it to fund the performance bond it needed to secure the contract.
“ITS is an important supplier in the North East and we wish them well as they fulfil this important contract. ITS’ win demonstrates how the Fund is giving Tees Valley companies the confidence to grow by bidding for larger contracts. We hope it will spearhead ITS’ future growth.”