Growth fund investment lights the way forward for Amitex LED

A specialist north east importer/wholesaler is aiming to light up the whole of the UK after bringing a major new investment into the business. Amitex LED Lighting Co Ltd supplies a growing range of green, energy efficient LED lighting products to some of the biggest electrical wholesalers in the UK from its Hexham base. Since being set up in 2003, it has successfully established a commercial presence in a number of different parts of the UK, from London and the south east through to Bristol, the Midlands and East Anglia, as well as in the north east.

 

But now, on the back of an explosion in demand for its products over the last three years, Amitex LED is looking to fill in the geographical gaps to become a truly national concern, and is expecting to add to its UK team in the process.  To help achieve this goal, the management team has turned to regional fund management firm NEL Fund Managers for a £150,000 investment from the Finance For Business North East Growth Fund that NEL administers. The investment will provide Amitex with the working capital and infrastructure it requires to support an extended operation, and to continue to bring the sorts of innovative new products to market that the company has built its strong industry reputation on. The business was originally set up as a consultancy that assisted with the importing of a number of different products from China, including LED lighting.

 

It began supplying its own range of LED products from 2004, and gradually moved the focus of the business more and more onto this area before deciding in 2009 to concentrate solely on it. Amitex LED now works with all the major names in the electrical wholesale business, including CEF, QVS, Edmondsons and Kew Electrical, and as well as its Hexham premises, it also has an office in mainland China employing Chinese nationals. It has seen an enormous growth in demand for its LED products over the last three years, which has now led the management team to bring in outside investment to help them capitalise fully on it.

 

Managing director Alan Morton says: “The cost-efficiency, where consumers can save up to 80% off their energy bills, and the environmentally-friendly nature of LED lighting  makes it a very appealing product, and we’ve certainly benefited from a massive upsurge in demand for our product range in the last few years.

 

“We’ve established ourselves firmly in a number of different parts of the UK, but know that there are more commercial rewards out there if we’re able to repeat this process across the areas we haven’t had the resources to address yet.

 

“The north east very much remains our headquarters, but the infrastructure developments we have planned will make us a truly national concern, and will give us an even stronger platform from which to sell on the growing range of attractive products that we provide.

 

“We looked at a number of different funding options, but got the best response to our proposition from the NEL team – they wanted to get the deal done and we’re very pleased to have been able to make it happen.”

 

Jane Siddle, investment executive at NEL Fund Managers, adds: “The Amitex LED team has turned detailed knowledge of a growing niche market into a very effective business model, and their commercial ambitions presented a very strong investment case to us.”

 

Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.

 

Managed by North East Finance, it will see £125m of investment capital injected into the region by the European Investment Bank, the European Regional Development Fund 2007-13 and the regional development agency over the next five years.

 

NEL is looking to make around 130 investments over the five-year life span of the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.

 

 

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