Sheffield-based Magnomatics is set to become a major player in the hybrid electric vehicles market following a second major funding round from Finance Yorkshire.
Established as a spin-out company from the University of Sheffield, Magnomatics’ range of patented products includes high efficiency, ultra compact motors and generators, as well as magnetic transmission systems.
The business is already supplying its products to the renewable energy, aerospace and marine sectors and is preparing to hit the hybrid electric vehicle market with its ‘MAGSPLIT’ transmission – a combination of a permanent magnet motor and magnet gear which is more efficient, smaller and lighter than competitor products.
Finance Yorkshire has provided a second Equity Linked investment of £933,000 alongside £1.1m from Magnomatics’ co-investor IP Group plc. Together Finance Yorkshire and IP Group provided funding in excess of £2m in 2012.
David Latimer, CEO of Magnomatics, said: “This second investment will enable us to further develop our MAGSPLIT product so that it is closer to be ready for sale to the hybrid electric vehicle sector.
“We have built and tested several of the MAGSPLIT in the last two years and have completed Innovate UK projects with Ford and Volvo and we now are at the point where we are attracting global interest.”
Magnomatics employs a team of experienced and highly qualified engineers at its base in Sheffield. It was advised on the funding deal by Andrea Cropley of Irwin Mitchell Solicitors.
Finance Yorkshire investment director Andrew Burton said: “Magnomatics is a highly innovative, world-leading technology company which has reached a critical stage in the development and testing of its MAGSPLIT product.
“Our second substantial co-investment will enable David and his team to take advantage of the global opportunities available in the hybrid electric vehicle market while at the same time continuing to build growth in its core renewable energy, aerospace and marine sectors.”
To date, Finance Yorkshire has made 694 investments totalling £90 million, creating and safeguarding 9,240 jobs.
Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.
IP Group plc is a leading UK intellectual property commercialisation company, its portfolio comprises holdings in around 90 early stage to mature businesses across Healthcare, Biotech, Cleantech and Technology.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from UK Government and £45million match funding from the European Investment Bank.