Parcel company gets first-class opportunity

May 7 2008 by Alistair Houghton, Liverpool Daily Post

A WIRRAL parcel-handling company says a new investment will give it a first-class platform for growth.

Sovex, of Prenton, plans a major expansion after winning its second investment from Merseyside Special Investment Fund (MSIF).

The company designs, builds and installs vehicle loading systems and conveyors to customers in the UK and Europe. Its clients include Royal Mail, UPS and catalogue company Freemans. It has now received a £400,000 cash injection from MSIF’s £20m Mezzanine Fund.

Sovex directors David Lindfield and Malcolm Dooley founded the company in 2002 and have over 50 years’ industry experience between them.

Turnover this year is expected to reach £4m and Mr Lindfield and Mr Dooley hope that figure will rise to £6.5m over the next three years.

Sovex employs 35 staff and expects to take on a further 10 during the next three years.

Managing director David Lindfield said: “The business has grown very quickly and we have won some major contracts. We need to expand significantly so that we can continue to provide a first-class service to our customers and have the capacity to take on new business.

“MSIF has been very supportive and this latest investment will provide us with the working capital we need to support our ongoing expansion plans.”

Malcolm Jones, investment director of MSIF’s Mezzanine Fund, said: “Sovex is a thriving business which has built up a solid customer base and is run by a strong and experienced management team with a proven track record.

“We believe the business will continue to develop successfully and are pleased to be supporting the company.”

The legal advisers involved in this transaction were Mark O’Connor, of Liverpool’s O’Connors, for Sovex, and Jonathan Radcliffe, of DLA Piper in Liverpool, for MSIF. Financial due diligence was under-taken by Langtons, in Liverpool.

alistairhoughton