25 January 2010

SHEFFIELD HEALTHTECH ATTRACTS INWARD INVESTMENT

A Sheffield biotech is the latest company to secure investment following its involvement in the Access to Finance for Healthcare Technologies programme.

Two business angels from outside the region have joined forces with existing angel investors in a deal worth over £100,000 for Kirkstall Ltd, a biotech company developing innovative testing technologies at its Sheffield BioIncubator headquarters. In addition, the Viking Loan Fund has provided Kirkstall with £70,000 of working capital to support the company’s growth.

The company has developed toxicity screening products to be used by the chemical, pharmaceutical and cosmetics industries to reduce the need for animal testing. The tests are based on human cells, reducing the risk of problems in human trials. The technology is the result of seven years research and development at the University of Pisa.

Dr Malcolm Wilkinson, managing director of Kirkstall, took part in Yorkshire Forward’s Access to Finance for Healthcare Technologies programme, managed by Grant Thornton, to help him shape the business plan and investor presentations.

Dr Wilkinson said: “The support provided by our mentors was very beneficial and helped us to hone our investor proposition. This helped us get the attention and secure the services of a first-rate non-executive chairman with impressive industry experience.”

Existing investors from the Viking Club and the Yorkshire Association of Business Angels have collaborated on this deal, demonstrating their confidence in the company and its people.

Andrew Burton, chairman of the Yorkshire Association of Business Angels, said: “There are major changes being proposed to the way we test compounds before they are used in, or on humans and Kirkstall is at the forefront of this work. The investment will enable the company to expand into this rapidly growing area.”

Kirkstall has just won its first significant three year contract on toxicity testing, helping the company meet its revenue targets for this financial year.

To find out more about the Access to Finance programme or to register your interest in the next introductory seminar, visit www.investinginhealth.co.uk

Ends

Picture caption: Emilia Barker, head of biology at Kirkstall, Lisa Ward, manager at Grant Thornton, Kirkstall managing director Dr Malcolm Wilkinson and Kate Darley, business development manager at Kirkstall.

All media enquiries to Lizzie Wilson or Harriet Cartwright at Cicada Communications on 01423 567111 / 07944 972393 or lizzie@cicada-comms.com

Notes to Editors

Yorkshire Forward

Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region. Over the past year, Yorkshire Forward has created and safeguarded more than 27,000 new jobs; helped create and attract more than 1,100 new businesses, provided nearly 66,000 learning opportunities and attracted more than £333 million private sector finance - achieving or exceeding all of the targets it was set. Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding from the Objective One and Two programmes. For more information visit www.yorkshire-forward.com

Grant Thornton UK LLP

Grant Thornton is a leading business and financial adviser, delivering unparalleled service standards and tailor-made solutions to over 40,000 corporate and individual clients. It is the UK member of Grant Thornton International, one of the world’s leading international organisations of independently owned and managed accounting and consulting firms. For more information visit www.grant-thornton.co.uk

Viking Loan Fund

The £1m Viking Loan Fund was launched by Yorkshire Forward to help secure working capital for SMEs in Yorkshire and has already supported X companies this year. The Loan Fund mirrors how the equity-based Viking Fund has operated for the past five years and will work closely with private investors across the region including the Viking Club and the Yorkshire Association of Business Angels. For further information visit www.vikingloanfund.co.uk

Yorkshire Association of Business Angels

YABA is a non-profit making introduction service that puts entrepreneurs and companies seeking finance in touch with private investors, known as business angels, looking to invest in start-up, growth stage and turnaround opportunities. YABA also offers companies access to a register of business mentors and non-executive directors drawn from its membership, who have expertise and experience in a wide range of industry sectors and professions. Further information is available on the YABA website: www.yaba.org.uk