French-owned tyre manufacturer Michelin is continuing to help small to medium sized enterprises (SMEs) in areas around its present and former UK sites.
Michelin Development UK gives loans to companies in Dundee, Stoke and Ballymena as part of its social responsibility agenda.
Last year the business development division had outstanding loans to SMEs of just over £750,000.
The company operates the venture as part of its social responsibility agenda in areas where it manufactures tyres or has closed or restructured operations.
It supports businesses that employ up to 250 people, if the projects can demonstrate viability and the potential to create quality sustainable jobs.
The help is in the form of loans from £5000 from the Royal Bank of Scotland as well as advice and mentoring. The loans have to be repaid in three to five years.
Applicants are required to invest some of their own equity but, as the funding is private, the loans can be used to gear up public and other forms of loan funding.
Michelin Development loans can be used for buying capital equipment, process improvement, working capital and marketing. The scheme is not open to the retail sector.
Accounts lodged with Companies House show Michelin Development had an operating loss of £20,772 in 2015 and a pre-tax loss on ordinary activities of £12,758 – in both cases slight increases on the previous year.
At the end of 2015, 68 loans were outstanding totalling £753,855, a slight fall from the loans outstanding a year earlier.
Director Mike Cole said the results for the year were in line with expectations, following the extremely low rate of interest which has continued to have a significant impact on interest receivable during the year.
The company has a loan facility with Michelin Tyre Public Limited Company to avoid any liquidity issues. Interest receivable was 0.5% above the base rate.
Mr Cole said the directors believe that that preparing the financial statements on the going concern basis was appropriate, due to the continued financial support of the parent company “and the knowledge that Michelin will support the company for the foreseeable future.”
A local pottery business in Stoke-on-Trent has created 20 jobs after bringing production back to North Staffordshire, thanks to Michelin Development.
Michelin Development also joined forces with agencies across Antrim and Newtownabbey to help create jobs.
