State investment slips £14m

Funding: Bank cash fuelling Scots private sector, claims SIB

Funding for companies through the Scottish Government’s investment arm has declined by £14million in the last year, with fewer companies being helped, new figures have shown

But the Scottish Investment Bank (SIB), part of the country’s economic development body, Scottish Enterprise, said the investments leveraged almost three times as much private sector cash – £277million in 2015-16 compared to £99million the prior year.

“Further investment into a new cohort of companies”

The bank backed 133 Scottish companies in the year, down from 155 in the same period last year.

Almost £10million was invested in renewable energy, including Atlantis Resources Meygen project, the world’s largest tidal energy scheme based in the Pentland Firth.

Other companies to benefit from SIB backing include subsea power generation firm EC-OG, drone company Cyberhawk and Sutherland fish farmer Loch Duart.

The bank added that its investment activity generated a record income of £35.7million during the year, following 12 successful exits.

It said the sale of the portfolio companies was a “positive signal” of the health of the Scottish early stage risk capital market and these exits “will facilitate further investment into a new cohort of ambitious Scottish companies”.

Further, the bank said that SIB investee companies supported over 3,700 full-time jobs in Scotland during the year, and achieved a combined annual turnover exceeding £550million.

Kerry Sharp, head of SIB said: “The results illustrate the impact that our activity is having on the Scottish economy, both in terms of actual investments made and the support we’re providing to companies in helping to preparethemfor investment.

“Under our expanding remit we’re focusing on improving the diversity of funding available for companies in Scotland and we continue to seek out the best ways to address emerging market gaps and identify additional sources of capital for investment into Scottish companies.”

Keith Brown, economy minister, added: “I welcome the positive performance delivered by the Scottish Investment Bank, which is continuing to support early-stage innovative companies to access risk capital investment, providing equity investment alongside private sector partners.

“This is a key element of the Scottish Government’s efforts to enhance the support available for SMEs.”

FUNDED: Tim Cornelius, chief executive of Atlantis Resources, seen with First Minister Nicola Sturgeon, has benefited from SIB cash