03.03.05
Precision Engineering Company Secures Investment Package

Left to right: Robin Teverson of Finance Cornwall who helped Mike Webb, commercial director and John Kelly, managing director and of Select Gauges and Calibration Ltd with their move to new premises in Torpoint

An internationally recognised precision engineering company in the southeast of Cornwall now has a bright future thanks to a £300,000 investment package led by Finance Cornwall.

Select Gauges & Calibration Ltd (Select), based at the Trevol Business Park in Torpoint, is a new company that has emerged from the liquidation of its predecessor, Select Gauges Ltd, last year following a series of events beyond its control. The company saw 50 per cent of its markets wiped out overnight following the September 11 terrorist attacks in New York in 2001 – a position from which it never fully recovered.

Then last year it was asked to vacate its premises which meant its high-tech environmentally controlled laboratory had to be dismantled. But following the intervention of Finance Cornwall, the Truro-based business finance company, a £300,000 package was put together by Finance Cornwall investment director Robert Seymour, and the new company is now looking forward to growing the business.

Fifteen of the original 23 staff have already been re-employed and in April Select will be exhibiting at Control 2005 in Germany, the biggest trade exhibition of its type in Europe.

Robin Teverson, chief executive of Finance Cornwall said: "Select is a world-class company and is internationally renowned for the quality of the precision measuring equipment and calibration services it provides to customers around the world. When the company approached us for support last year we could see that it was a sound business that had been a victim of circumstances beyond its control. We've taken an equity stake in the new company and have introduced a commercial director through our Gateway to Success scheme to help the existing team move forward."

Select's laboratory is one of only two in the country accredited by the United Kingdom Accreditation Service for certain types of work and is internationally recognised for its quality. It manufactures its own precision measuring equipment and also provides calibration services to other companies – an area of the business where it sees substantial growth.

Select Managing Director John Kelly, who has invested substantially in the new business and retains a majority stake, said: "September 11 left a gaping hole in our balance sheet because capital investment decisions around the globe were put on hold, and that had an immediate knock-on effect. Then we had to move premises which meant we didn't have the laboratory that is necessary for getting our products to market. But thanks to the support of Finance Cornwall we're now back in business with a new lab, new products and big plans for the future."

Finance Cornwall introduced Select to Mike Webb, a consultant with an engineering background, through its Gateway to Success scheme. This provides Finance Cornwall customers with ongoing support through a panel of hand-picked individuals to help businesses boost their skills and capacity.

Mike has joined Select as Commercial Director and will be working to develop new markets. He said: "Around 75 per cent of our business is export led with Europe and Asia being our biggest customers. We want to build on the markets we already have and target new opportunities including North America, Italy and France, and build on our unrivalled reputation for quality products and services."

Select has also received support from the South West Regional Development Agency, which has provided the company with premises on the Trevol Business Park.

Advisers on the investment package were Tim Jackman from the Plymouth office of commercial law firm Bond Pearce who acted for Finance Cornwall; Sean Middleton of Rundle Walker in Exeter acted for Select. The company's accountants are Bishop Fleming in Exeter and banking services have been provided through Roger Mould of HSBC in Plymouth.

For further information contact Jason Clark at Deborah Clark & Associates on Tel: 01872 276276 or visit www.financecornwall.co.uk

Finance Cornwall is an Objective One Gateway Fund with investment of £9 million from the European Regional Development Fund.

Editor's notes:

About Finance Cornwall:
Finance Cornwall invested equity and mezzanine working capital funds alongside the management team at Select. Finance Cornwall's commitment to the company from its funds is undisclosed.

Finance Cornwall is a £20 million investment fund backed by £9 million from the Objective One European Regional Development Fund.

For more information visit www.financecornwall.co.uk

About Select Gauges & Calibration Ltd:
Select Gauges & Calibration is the successor company to a 1999 management buy-out company from Brown & Sharpe. The company is a market leader in the manufacture of high quality tungsten carbide gauge blocks and related high-precision metrology equipment and sells to customers worldwide. The company also offers a range of calibration and metrology services from its well-equipped UKAS-certified laboratory in Torpoint, and boasts a range of equipment thought second only in the UK to those of the National Physical Laboratory in Teddington.

For more information contact:

Jason Clark
Deborah Clark & Associates
01872 276276
07980 834368

Robert Seymour
Investment Director
Finance Cornwall
01872 272288

Mike Webb
Commercial Director
Select
07779 264260

Clare Morgan
Media Relations Manager
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Mobile: 07973 813647
Telephone: 01872 223439

cmorgan@cornwall.gov.uk

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