UK - YFM backs expansion plans for BFM Distributions

Guy
06 February 2006

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BFM Distributions, a Shipley-headquartered wholesale and retail distributor of motorcycle spares and accessories, has won venture capital backing from YFM Venture Finance for its expansion plans.

Whilst the business occupies what is thought to be the oldest established motorcycle shop in the country – it opened in 1902 – BFM Distribution is a much more modern creation. Set up in 2001 as something of a hobby by Nigel Worthington, a motorcycle racing enthusiast who had himself competed at the very highest level on the UK motorcycle circuit, BFM Distribution has seen its sales race ahead. In 2003 sales were creeping up to the £0.5m mark. In 2005 they exceeded £3m.

Nigel, a former Apple Computer national sales manager who 'retired' in his early thirties to indulge his passion for speed – racing motorcycles – recognised that he could not continue to finance the growth of BFM Distributions on his own.

With help from Kevin Shaw at Strategic Corporate Finance a blue print for the forward financing of the business was developed. When this was put to YFM Venture Finance’s Mark Hunter it prompted an offer of investment backing. The deal that has been concluded involved a £250,000 investment in the business by the Yorkshire and Humber Equity Fund, the £25m regional venture capital fund managed by YFM Venture Finance.

As Nigel Worthington puts it, 'The business has really taken off over the last couple of years but there is still much more we can do to build and to better serve our customer base. With the financial muscle that YFM Venture Finance is bringing to the business and the support of our bank, RBS, we will be investing in a range of new marketing initiatives and in a strengthening of in-house financial control systems.' Mark Hunter is pleased with the investment in BFM Distributions, 'The company employs people with a passion for motorcycling and that shines through in the way that they deal with their customers. Sometimes enthusiasts are inclined to ignore the financial drivers in running a business but at BFM Distribution there is a very strong commercial focus. That gives me confidence that the business will continue to grow and continue to be profitable'. Trevor Ironmonger of Curtis Ironmonger was the legal adviser to the company and Andrew Coombe of Keeble Hawson acted for YFM Venture Finance.