Rosebud building for the future

“Rosebud provides the building blocks and those building blocks helped get us to where we are today.”

That simple message from Phil Barnard, co founder of Adlington-based DA Techs and Smart Techs, became the unofficial theme of Lancashire County Council’s Rosebud 40th anniversary celebration, held at The Flower Bowl near Preston.

Business founders, fund managers and county leaders heard about Lancashire County’s Council’s relationship-led business finance programme that does more than lend, it underpins and supports Lancashire businesses to scale, diversify and endure.

Amin Vepari, the business finance and scaleup lead at Lancashire County Council,
says Rosebud’s success is down to taking considered risks and evolving with the market.

He said: “Rosebud’s been around what seems like forever and it’s very unusual for a council to do this kind of stuff as it goes into that commercial space, and there’s risk involved, but there’s a lot of satisfaction with it as well.

“We’re not a transactional lender. We’ve made it more about relationships and we’ve grown that. There’s no mandate saying ‘we have to do this’. We do it out of choice because we want to.”

Rosebud has created over 1,400 jobs in the last 14 years and invested more than £27.5m in the last 12 years.

Delegates heard from the inspirational panel of Rupert Gatty from Coolkit, Janis Saveljevs of JJS Supplies, Phil Barnard of DA Techs and Smart Techs and Mike Riding of Process Instruments about the impact of Rosebud on their organisations.

Rupert talked about the aftermath of the credit crunch in 2010 when Rosebud stepped in where others wouldn’t.

He said: “Rosebud agreed to invest £20,000, it was a big step forward and helped us work our way into major vehicle leasing businesses.”

“It put us in a new landscape where we’ve grown substantially. Back then we had a record order book of about £300,000. Today it stands at about £1.7m.”

Rupert says the funding has helped the county’s economy. “In 2014, we promised that a great outcome for the county would be we would increase our headcount to 50 and we’ve got about 130 on the payroll today.”

For Phil Barnard, Rosebud was the catalyst that allowed DA Techs and Smart Techs to jump from a regional operator to a national player.

He said: “Our business is very capital intensive and we’d taken on a new contract and we were working out how we were going to fund equipment to fulfil it.

“We needed additional funds to grow, and with the support of Rosebud, we were able to access the funding quite painlessly.”

Phil says the funding paid off as its turnover in February 2020 was about £400,000 and the business is on track for £3.5m this year.

Mike Riding of Process Instruments, said Rosebud didn’t just fill a gap – it unlocked an entire funding package.

He said: “We wanted to manufacture our own equipment in Lancashire but nobody was going to give us £250,000.”

They pieced together support from an angel investor and Michelin, but it wasn’t enough – until Rosebud stepped in.

“They jumped first, they were the people who looked at us and said we will lend you the money.

“In 2007 we turned over £250,000 and last year it was £5.5m and we now have subsidiaries in Ireland, France, and China.

Without the intervention by Rosebud we wouldn’t be here at all.”

Janis Saveljevs of Preston based JJ Supplies tells a story familiar to many start ups experiencing rapid growth but crippling cash flow gaps, compounded by banks unwilling to back an early stage business.

He said: “We went to a bank and they said no. We couldn’t even get an overdraft.”

JJS Supplies accessed Rosebud by Boost Lancashire’s Growth Hub.

He said: “We managed to obtain the full £100,000 we wanted. Unlike other lenders, they understood what the business is about as Rosebud has a more personal touch.”

The business has since expanded from £60,000 turnover to £1.2m in three or four years.

And his praise for Rosebud is unreserved. ‘It sounds too good to be true but the knowledge and understanding you gain is so worthwhile.”

Martyn Sutton, Lancashire County Council’s lead member for economic development, contrasted Rosebud’s partnership model with older, harsher forms of commercial lending.

He said: “I remember the days when you went There’s never been a good time to start a business…you must be bold, seize the opportunity and adapt to your friendly bank manager with the business plan, you walked away, you were on your own, and if it didn’t work they took your house.”

With uncertainty over the future he had a message to today’s entrepreneurs.

"There’s never been a good time to start a business, if you wait for all the stars to line up you’re just never going to do it. Hats off to the people here as you must be bold, seize the opportunity and adapt.”

He added Rosebud’s model is more relevant than ever. “Rosebud don’t just lend, they work alongside you and are part of the journey.”

Behind the fund is a team intentionally structured around founder support including Martin Emmott, Amy King and Mark Gibbons.

Martin Emmott, fund manager, said: "We’ve got a great team and we know we’ve got to live up to 40 years of legacy, and we’re just going to continue to do that to the best of our ability.”

Mark Gibbons, partnerships manager, describes how Rosebud Academy emerged directly from listening to businesses: “Owners kept saying: I wish I knew then what I know now so we built sessions to answer those questions.”

Amy King, investment co-ordinator says Rosebud has been praised for its accessibility.

She said: “Knowing there’s someone on the end of the phone, that really helps clients.”

She added that if Rosebud isn’t the right fit, the team makes sure businesses aren’t left stranded: “We’re not doing this for us, we’re doing this for you.”

Whether it was a make or break investment, the confidence to expand beyond Lancashire, or the simple relief of a lender who actually picks up the phone, Rosebud’s role has been foundational, the building blocks on which businesses could be brave.

Forty years on, Rosebud remains what Lancashire’s business leaders say they needed most: a fund that believes in them and backs that belief with action.