Gateshead company wins £200,000 investment to support expansion

A Gateshead procurement and inventory systems supplier has won £200,000 in further investment to support its expansion.

Propellor Holdings has been given a second investment from FW Capital to underpin the company’s continued expansion.

Propellor, a specialist procurement and inventory systems supplier received a £750,000 equity investment from FW Capital in 2011 which it used to develop and launch its new Pro-Vyda inventory system as well as to move to its new Gateshead premises in June 2012.

Since receiving the investment, Propeller has expanded significantly and seen its turnover increase by more than 20%.

Managing Director, Carl Brookes said: “Our Pro-Vyda system has attracted a lot of attention because it can help companies achieve cost and efficiency savings of up to 40 per cent.

“These savings can add up to significant sums for our larger customers.

“We’ve recently won some high-value contracts which have contributed to our success and we’re determined to become a leading supplier of MRO systems.

“We’re pleased that FW Capital has backed us with another round of investment.

“FW Capital’s initial investment helped us launch Pro-Vyda and fund our UK expansion.

“We’ll use this latest investment to continue developing Pro-Vyda so it stays ahead of the competition and also to expand into Europe.”

Pro-Vyda is a Maintenance, Repair and Operating (MRO) system which enables manufacturers to control the use of consumables and spares during the production process.

Sales of Pro-Vyda have been impressive since its 2011 launch and Propeller has seen a significant increase in its market share as it has secured contracts and new clients in the automotive, aerospace and food sectors.

Clients, including TRW and Intersnack and automotive components manufacturer, Unipres report cost savings of up to 40% using the new system.

Where clients do not wish to install their own systems, Propeller can also provide them with an outsourced inventory management service. This service is set to become an increasingly important part of Propeller’s business in future.

Propeller has also recently appointed David Pearson as its new Chairman, Pearson is an experienced businessman and former director of Focus DIY with a background in senior management and commercial roles.

FW Capital Investment Executive Michael Vassallo said: “Pro-Vyda is an innovative system which is helping Propeller to establish its position as a market leading supplier of inventory systems.

“Its growth levels have been impressive since we first invested.

“Propeller’s management team are clearly focused on further expansion and continuing to develop innovative products and services that deliver real benefits for their clients.

“FW Capital is pleased to back this successful management team and our latest investment will help Propeller build on what they’ve already achieved.”

Advisors on the deal were Dickinson Dees LLP and DWF LLP.