Aquaculture Business Celebrates 10th Anniversary with Boost from Investment Fund for Wales

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A business which provides research and development support to aquaculture companies globally is celebrating its 10th anniversary with a finance package from BCRS Business Loans through the Smaller Business Loans fund, Investment Fund for Wales.

Pontus Research based on Hirwaun Industrial Estate is a contract research organisation, providing R&D support to companies around the world who are developing feeds and feed ingredients and additives for aquaculture. It runs high quality trials with a wide range of species under a variety of conditions, from coldwater to warmwater, and from fresh to full strength seawater.

Its early growth came via small-scale debt funding but 2020 was forecast to be a pivotal year and the firm invested £1.2 million into buying and developing a new operating property and research facility. However, the pandemic hit, and the effects have been felt industry-wide until recently.

Founder & CEO, Jack James, explains:

“Up until the pandemic the business was hitting all its targets – we’d raised £1.2 million from private equity investments, grant funding from the European Maritime and Fisheries Fund and private and public debt funders. However, buying the 2,600 sq. metre site complete with a 1,000 sqm building, and the subsequent investment, came at a time that no-one could have predicted, and we have been working hard to get on an even keel ever since.

“During this past year pieces have been slowly fitting into place, but cashflow has remained an issue for us. Put simply, a few months back I wasn’t able to see a near future where the company was healthy enough to genuinely celebrate our 10-year milestone.”

Jack has been working hard to protect the business and its 14 highly skilled employees whilst also realising the opportunities for growth. Jack was recommended to contact BCRS Business Loans, one of three fund managers for the Investment Fund for Wales.

BCRS South Wales Business Development Manager, Graeme Lewis, worked closely with Jack to secure a finance package of £80,000 from the Investment Fund for Wales, which was launched by the British Business Bank in late 2023.

Jack continued:

“We know that in accessing the equity in the building we are securing Pontus Research’ future. Previous experience of working with funders told us that this would take time, so working with BCRS was a breath of fresh air – everything was dealt with in such a professional manner, and they were quick to take the time to understand the business. We needed liquidity in the short term, and BCRS was able to deliver that, quickly with invaluable support and assistance from Kevin at Cornerstone Finance.

“Graeme at BCRS was fantastic, understanding the short-term situation we faced and within weeks we had the positive news that funding was obtained.”

In obtaining the finance package Pontus Research has safeguarded all employee jobs, whilst giving the business the support it needs to plan for the next chapter of growth.

Jack added:

“This finance, at this time, has been very important. Cashflow for any business is a huge issue and nobody could have forecast the pandemic and just how much it would affect us, along with millions of other businesses. But now, post-pandemic and after securing this money, I am looking forward to getting the business to the position it should be in.

“We have a great pipeline of research projects, whilst our recent expansion and addition of a research-scale feed mill is forecast to grow our customer base for R&D work and feed production. Alongside this, we are developing a footprint in Asia, after opening a Singapore base and successfully operating that for over two years.

“I can’t thank BCRS and the British Business Bank enough for their support and I am hugely excited to see how the business develops, both in Wales and overseas.”

Graeme Lewis, Business Development Manager at BCRS Business Loans, said:

“Pontus Research came to us at a time that was pivotal, and we were only too happy to work with Jack to find a finance solution that works and would benefit the business in the short, and long term. We are delighted that this finance provided Jack with the buffer he needed to protect his business.

“BCRS are a story-based lender, and we support businesses that often find it difficult to access finance through traditional routes. We pride ourselves on our bespoke support and base our decisions on the business itself, not computerised credit scores.”

Bethan Bannister, Senior Investment Manager, Nations and Regions Funds at the British Business Bank, added:

“The £130 million Investment Fund for Wales is there to support Welsh businesses with growth ambitions to realise their goals. The pandemic had meant that Pontus Research had experienced a few bumps along the way, however with the backing of BCRS and the Investment Fund for Wales they now have a clear path forward to scale and grow. We look forward to watching their continued success.”

The British Business Bank backed Investment Fund for Wales operates across the whole of Wales and includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale up or stay ahead. BCRS Business Loans is managing the smaller loans part of the fund (£25,000 to £100,000). FW Capital will be responsible for larger loans (£100,000 to £2 million) and Foresight will manage equity deals (up to £5 million).

The Investment Fund for Wales helps to increase the supply and diversity of early-stage finance by providing options to smaller businesses that might otherwise not receive investment. Funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment.

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