The Development Bank of Wales has completed a further six figure investment in Reel Label Solutions to allow the Pontyclun-based printing specialist business to scale up production capacity to meet growing demand.
Having completed a management buy-out in May 2022 that was funded by a £1.2 million mix of equity and debt from the Development Bank, Reel Label Solutions has achieved forecast growth in the last year. The latest funding has been used to finance a new Tau RSCE manufactured BY Durst. This latest machine is 1200 dpi and will produce digital labels at an even higher quality level. The press will help the business with its growth, improve its uptime and reduce waste and energy usage in the business. It is one of just six machines in the UK.
The Managing Director of Reel Label Solutions is Jonathan Wright. He said: “The initial support from the Development Bank at the time of the management buy-out put us in a position of real strength to build a long-term sustainable future.
“The Bank has stayed true to its word and stood by us as we’ve grown over the last year. This latest investment is a real vote of confidence in our business, giving us the extra growth funding required to invest in the latest printing technology as we scale up production to meet growing demand.”
Sam Macalister Smith is a Portfolio Executive with the Development Bank. He said: “From day one, Jonathan and the team have demonstrated their commitment to maintaining their reputation for being able to deliver high quality labelling while also growing their customer base. Our continued support means that they can make additional investment in their production facilities with the latest printing press technology.”
The follow-on funding for Reel Label Solutions came from the £216 million Wales Business Fund is financed by the European Regional Development Fund and the Welsh Government. Loans, mezzanine finance, and equity investments are available for deals between £50,000 and £2 million with terms ranging from one to seven years for small and medium-sized businesses (those with fewer than 250 employees) based in Wales, or willing to relocate to Wales.