Leading UK subsea specialist contractors is the latest North East Company to secure funding
Darlington based Modus Seabed Intervention (Modus), which is part of the Tompkins UK Group, has secured a £170,000 short term loan from the fund to finance the performance and warranty bond required to deliver a £1.7 million contract in the offshore wind sector.
Modus is one of a number of sub-contractors working with leading European energy group, DONG Energy, the Danish company laying the foundations of the extension to the Burbo Bank offshore windfarm 8km off the coast of Liverpool Bay in the Irish Sea.
Modus is surveying for, and disposing of, unexploded ordinance at the new windfarm site and hopes that successfully delivering this contract will open the door to similar large offshore wind projects.
FW Capital worked closely with Modus and its bank, HSBC, which provided the bonding required for the contract.
Modus’ Finance Director Mark Short said: “Modus has both the capacity and capability to expand its market share in the energy sector. This contract could be pivotal in paving the way to us winning further contracts in the sector and demonstrating our diverse range of services.
“The Tees Valley Catalyst Fund has provided us with the backing we needed to win this contract and winning it is excellent news for us. We quickly established a relationship with FW Capital and they worked with us and our bank to ensure we had the finance in place.”
Modus is a well-established company operating a comprehensive range of unmanned underwater vehicles which can be deployed across the entire life cycle of a subsea field development.
With the North Sea oil industry a key market, 2014 was a challenging year for the subsea sector.
While Modus continues to work with companies in the oil and gas and telecoms sectors around the world, it has invested in cutting-edge technology and developed its capabilities to take advantage of opportunities in the offshore wind sector.
FW Capital Investment Executive Chris Johnson said: “Modus is a business on an exciting growth path which is flying the flag for the Tees Valley. It’s an innovative company with a fantastic track record and an excellent reputation for providing market-leading products and services.
“Modus operates in a highly competitive marketplace and winning this contract is fantastic news for the company and its employees. It will open up new opportunities in future and I’m pleased that the loan from the Tees Valley Catalyst Fund has played a key role in this.”
The Tees Valley Catalyst Fund was conceived by Tees Valley Unlimited (TVU), the Local Enterprise Partnership for the area to provide companies with the finance to grow and prosper. Backed by Regional Growth Fund, in October 2014 the fund was widened to businesses across the North East and parts of North Yorkshire.
Neil Kenley, Director of Business Investment at Tees Valley Unlimited said: “We wanted the Catalyst Fund to be the facilitator that would allow ambitious companies to reach new markets, win new contracts and showcase their capabilities on an international scale.
“The Tees Valley and wider North East has a wealth of unbridled knowledge and expertise and when we capitalise on that more work and more jobs come our way.”
HSBC Relationship Director Stuart Henry said: “Modus is really demonstrating the strength of the offshore and subsea supply chain here in the Tees Valley. As they continue to secure new contracts in both the UK and overseas, we look forward to working with FW Capital and the Tompkins UK Group, supporting the company as they continue their growth strategy.”