North East Deals of The Week

Newcastle life sciences business SkinBioTherapeutics raised £1.56m from two investors keen to back the dermatology specialist despite it not actively looking for funds.

The AIM-listed developer of skincare technologies has secured investment from UK institutional investment manager Premier Miton and Australia-based Cynosure Capital Pty Ltd by the placing of 14,875,749 shares at 10.5p per share. The move comes only days after the Newcastle-based firm, which originated from the University of Manchester, reported sales growth and said it had sufficient cash to fund it to 2025.

Bosses said Premier Miton and Cynosure Capital Pty Ltd were unable to participate in the conversion of a convertible bond facility, closed at £1.6m, that was intended to bolster SkinBioTherapeutics' acquisition strategy. Their backing has instead come via the share placing, producing £1.44m after expenses, to support commercialisation of the firm's psorasis-fighting AxisBiotix-Ps product, commercialisation of acne treatment and potential payment of a deferred amount for its acquisition of Cambridgeshire-based wounds and skincare specialist Dermatonics earlier this year.

Stuart Ashman, CEO of SkinBioTherapeutics, said: "It's extremely rare for small cap companies to be proactively approached by larger investors in this manner, and the support of Premier Miton and Cynosure Capital is a real endorsement of the huge potential of our business.

"This funding now extends our cash runway through 2025, removing any uncertainty in the short-to-medium term and underpinning our ability to deliver the exciting projects that we currently have under way. Whilst further dilution was not something we undertook lightly, we are not seeking any further authority to issue shares this year."

Crown Works Studios will have numerous sound stages (Image: Lichfields)

Industry leaders welcomed a £25m investment which will kickstart the creation of the Crown Works film studios in Sunderland.

FulwellCain, a joint venture between Fulwell 73 and investment firm Cain International, is driving forward the £475m scheme. North East Mayor Kim McGuinness and members of the North East Combined Authority have now rubber-stamped a £25m investment in the region’s screen industry at its Cabinet meeting, allowing preparation works to begin on the site at Pallion. It is also predicted that, as the development and its supply chain progresses over the next 10 years, it could add £2bn to the region’s economy.

Alison Gwynn, chief executive, North East Screen, said: “The North East is currently the fastest growing region in the UK for film and TV production and has seen an 86% increase over the past two years with 2024 already set to create even more jobs for local people.

“The Crown Works Studios development will supercharge the North East to become an international film and TV production hotspot, where world class content for global audiences is made all year round.”

Ben Bennett of Luminous XR, left, with Chris McCourt of Mercia. (Image: Far Horizon Images for Mercia)

A Tyneside business specialising in 3D digital technology is aiming for overseas growth on the back of a fresh £1m investment. Newcastle based Luminous XR, which is pioneering extended reality (XR) software, has raised the seven-figure sum from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures.

The firm’s platform allows developers to create metaverse-style training programmes and simulate real-life scenarios – for example for health and safety training – and is particularly popular with clients in the energy, manufacturing and industrial sectors.

The investment will help the Toffee Factory based company to deliver on a seven-figure contract with a major Middle East oil provider, while also targeting other overseas markets, in particular the US. The company has also developed a virtual reality content authoring tool, called Flow, which will be launched in late summer and will make it easier and faster to create training content by removing the need to write code.

Leigh’s Nurseries has been acquired by Wirral-based Kids Planet (Image: Leigh’s Nurseries)

Newcastle-based Leigh’s Nurseries, an early years childcare provider with three sites across the North East, was acquired by Kids Planet Nurseries in a deal overseen by advisors at UNW LLP and Muckle LLP. The company was launched 20 years ago by Leigh and Paul Caven when they opened their first nursery in Heddon-On-The-Wall in Northumberland, and later expanded into Gateshead and North Tyneside.

The company is now part of the Kids Planet group, a family-owned group based on the Wirral which now has more than 195 nurseries across the UK caring for more than 29,000 children. Leigh’s Nurseries provide childcare to more than 230 children and the deal also secures the future jobs of its 80-plus staff members.

The transaction was advised on by the corporate finance team at UNW LLP, led by Nick Broadhead and Chris Wilson, while legal advice was provided by the corporate team at Muckle LLP, led by Philip Clare and Stephanie Brown.

Leigh and Paul Caven said: “After nearly 20 years at Leigh’s Nurseries, we decided the time was right to spend more time with our family. We met Kids Planet and instantly there was a connection. We chose them as by far the best fit to move forward with our wonderful staff and home-from-home nurseries."

Left to right: Rob Ribchester of RMT Ribchesters, Maxine Pott of RMT Accountants & Business Advisors, David Holloway and Lesley Stabler of RMT Ribchesters and Mike Pott of RMT Accountants & Business Advisors. (Image: RMT Ribchesters)

RMT Accountants & Business Advisors has acquired Ribchesters Chartered Accountants to create RMT Ribchesters, a move to boost both firms’ client services across the North East and beyond, which includes audit and accounting, recovery and insolvency, specialist tax, business advice and corporate finance.

The move comes after Gosforth based RMT became part of national group Sumer in February, a top 15 UK accountancy group which invests in successful accountancy firms across the UK to create regional hubs championing the SME market. With Sumer’s backing, the Ribchesters team will continue delivering its range of services to corporates, owner-managed businesses and individuals, while RMT will be able to tap into its expertise in the charity, education and legal sectors.

Together, the combined practice will include ten directors and a team more than 120 employees.

Mike Pott, managing director at RMT Accountants, said: “The unification of our practices reflects our shared commitment to provide top-tier professional services, with a personal touch. Ribchesters’ renowned expertise will boost our ability to deliver specialised solutions to clients, both existing and new, across a much broader area.”

This article was originally posted on Business Live: https://www.business-live.co.uk/enterprise/north-east-deals-week-key-29681989