Yorkshire tech firms set to lead the way to market
11 February 2013
Deloitte says 2013 is shaping up to be a good year for Yorkshire firms looking to raise finance from the equity markets.
The recent gains in the stock market and improved sentiment around prospects for China and Europe, combined with the US having stepped back from the fiscal cliff, means there is a more positive environment for firms thinking about an initial public offering (IPO).
Following the success of companies such as WANdisco and EMIS who listed on the AIM market in recent years, business advisory firm Deloitte believe there could be more Yorkshire IPOs to follow in 2013.
According to Deloitte partner Rob Seldon, the Yorkshire technology sector and businesses looking to expand aggressively into international markets are particularly attractive to equity investors.
“Yorkshire firms are typically led by strong, entrepreneurial management teams who are keen to explore financing options to meet their strategic goals. The capital markets will continue to provide an alternative option for ambitious firms looking to raise capital for expansion,” he said.
“Developing strong technology platforms and exporting to developing markets both involve a mix of risk and reward which, when coupled with strong management governance makes them attractive to the equity markets.”
Not all firms needing finance will want to list on the stock markets and Yorkshire businesses are becoming increasingly innovative in how they fund themselves, according to Seldon: “We are increasingly seeing businesses finance day to day operations by generating their own cash, but for more significant capital projects businesses are making using of asset based lending and mezzanine products.
“The Business Growth Fund is another attractive finance pot for firms looking to grow and can provide funding up to £10m.”
Notes to Editors:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.
Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.