Darlington subsea specialists Modus Seabed Intervention strike £2.45m finance deal

Subsea specialists are aiming to double turnover to £28m within three years after securing a finance deal

Subsea innovators Modus have secured a £2.45 million equipment finance package from HSBC's Tyne Tees Commercial Centre
Subsea innovators Modus have secured a £2.45 million equipment finance package from HSBC's Tyne Tees Commercial Centre

SUBSEA specialists Modus Seabed Intervention is aiming for international growth after securing a £2.45m finance package from HSBC.

The Darlington-based firm, which employs 50 people, provides services for offshore industries, including the engineering and management of equipment to sectors including renewable energy, oil and gas and defence.

At present it generates up to 85% of its £14m turnover from operations in the North Sea, but has recently completed contracts in the Mediterranean and South American market, while also setting up representation in Malaysia to target business in the Asia Pacific market.

Now the business, established in 2008 by Jake Tompkins, has a target of growing turnover to £28m by 2017, while also aiming to expand its geographical spread.

That plan can now be actioned after adding to its fleet of vehicles that operate subsea and on the seafloor, supported by the finance package from HSBC.

The company secured the equipment finance package from HSBC’s Tyne Tees Commercial Centre, in a deal managed by senior international commercial manager Stuart Henry, with support from HSBC equipment finance business development manager Ian Davidson.

The finance has been allocated from HSBC’s £100m SME Fund specifically for North East businesses and was secured under the bank’s Assisted Asset Purchase Scheme, with an additional £500,000 grant from the Regional Growth Fund.

Modus has used the finance to buy a remotely operated vehicle (ROV), which will be used by the company for subsea inspection, repair and maintenance, survey, drilling and general construction support.

The purchase brings its ROV fleet up to nine and is part of the company’s plans to expand its geographical spread.

Managing Director Jake Tompkins said: “We have added to our fleet of ROVs to react to growing market demand and also as part of our strategy to expand our capability range and geographical spread.

“The skills and experience we have gained in the North Sea market are transferrable to other parts of the world and we have already won a number of major contracts globally.

“We believe there is greater scope to export our services and we are looking at the Asia Pacific markets, the Americas and also Africa.”

Pat Dellow, HSBC Tyne Tees area commercial director, added: “Modus is a growing, ambitious company that is taking advantage of growing international opportunities to invest in its business. It is typical of many of the businesses I am talking to across the North East from a range of sectors.

“There is a true sense of optimism in the market at presence.”

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