Mercia Debt has provided c.£9m in business loans from the Northern Powerhouse Investment Fund II (NPIF II) since the fund’s launch a year ago – and the impact is already evident.
Twenty-six business have so far received funding to pursue their expansion plans, with some of them having made rapid progress.
Pete Sorsby of Mercia Debt says: “Since the launch of NPIF II, we have got off to a flying start. We have backed some great companies and the results are beginning to show. Debt funding can transform a business and these examples illustrate the impact it can have.”
Here are five businesses that are feeling the benefits:
1.THORNTON PARK FARM, RIPPONDEN
Holiday lodges will help farm diversify
Situated in a dramatic location on top of the Yorkshire moors, this family-run farm rears sheep, cattle and rare Suffolk Punch horses. The NPIF II funding is enabling Richard and Nina Dunnett and their son Jack to build luxury holiday lodges to diversify their income
The £100,000 loan has unlocked a further £50,000 in grants. Construction of the five lodges is well underway, with two due to be ready by Easter and the others by May, and the family has already received strong interest.
‘It is difficult to make a good living from smaller farms now. Tourism is an excellent addition to our income streams and, with such a beautiful location, holiday companies say they expect the site to be very popular.’
Richard Dunnett, farm owner
2.SORE PAWS VETERINARY LTD., NEWTON AYCLIFFE
New vets’ surgery will enhance local service
This popular independent vets’ practice had outgrown its existing premises in a local shopping centre and desperately needed more space.
A £400,000 NPIF II loan has enabled it to take on and fit out an additional 2,800 sq ft of space in the same location – three times the size of its existing surgery. The practice, which is led by Dr Sarah Holmes and her husband Aaron, has retained its existing unit and used the extra space to create new consultation rooms, operating theatres, a laboratory, X-Ray room and separate areas for cats and dogs.
‘We are an independent practice that aims to combine modern medicine with old-fashioned care. The funding has enabled us to stay at the forefront and offer a modern, purpose-built surgery with all the latest equipment while retaining the village vet feel.’
Dr Sarah Holmes, Veterinary Director and founder
3.TALK STRAIGHT, ILKLEY
Expansion creates 10 jobs in first five months
Talk Straight supplies secure broadband to over 2,500 UK schools and academies, helping them to maintain strict controls over traffic and content.
Its CEO David Tindall led a buy-out of the business in 2024 following the retirement of his co-founder. The £500,000 loan has provided additional working capital to help meet demand and enable him to pursue his growth strategy. The company, which employed 70 staff at the time of loan, has already created 10 new jobs within the first five months and its expansion continues.
‘Talk Straight has built a reputation as a leading supplier to the education sector. The funding is enabling us to continue our growth and pursue our aim to become the largest provider of broadband to schools in the UK.’
David Tindall, CEO
4.INTEB, BIRKENHEAD
Consultancy expands into contract work
For over 20 years, Inteb’s energy and environmental consultants have been helping clients to reduce energy costs and improve sustainability. However until recently, they have had to find separate contractors to carry out the improvement work they recommended. The funding has enabled them to take on projects themselves such as the installation of solar panels, lighting or insulation.
Inteb more than doubled its turnover in the past three years to £3.6m and increased staff numbers from 21 to 33. It expects to create an additional 20 jobs through this latest growth drive, with the first appointments due to be made later this year.
‘By having the ability to implement and manage projects ourselves, we can offer our clients a complete service. The funding will provide additional working capital to enable us to expand our team and fund work in progress on these more costly capital projects.’
Tom Kelly, Managing Director
5.XENTRA, LEEDS
Cybersecurity business set to double in size
Xentra provides cybersecurity solutions to clients including Leeds United FC, Leeds Bradford Airport, local councils, schools and NHS bodies. It is the third cyber venture from entrepreneur Henry Doyle, who previously co-founded Altinet and Boxphish.
The funding provided additional working capital to support its growth drive. Six months on, Xentra has created five new jobs, is achieving steady growth and on course to double turnover in the current financial year.
‘We are consistently adding between 6-15 new net businesses per month. This momentum has helped push our sales beyond £1.5m for the year, a major milestone in our growth journey. We’ve also secured our largest deal to date. This funding has been a catalyst for expansion, innovation and long-term success.’
Henry Doyle, CEO