Poole: Muc-Off sparkles following investment finance from Santander's Breakthrough programme
Specialist bike cleaning products business Muc-Off is gearing up for growth after receiving a £1.95 million investment package as part of Santander’s Breakthrough programme.
The Poole-based company was established in 1991 by Alex Trimnell and his late father Rex, who invented a cleaning fluid that did not damage anodised bicycle components. This original ‘pink fluid’ was launched in 1994 and remains one of the company’s most popular selling products. The company now boasts the largest range of bike cleaning and care products in the UK, with 140 specialist products for bicycles, motorbikes and cars, including cleaners, lubricants, waxes, dry shower and rider care kits.
In addition to the care and protection of bicycle equipment, the company is committed to ensuring its products are as ecologically sound as possible and has managed to create market-leading products which are biodegradable and gentle on the environment.
Muc-Off has completed the development of its product range and is focusing on increasing sales and marketing. The new funding will be used to increase headcount, creating around five new local jobs, and to invest in a new marketing drive to help ramp up sales and brand awareness, particularly within the road-bike market.
The funding includes £850,000 of Growth Capital investment, which is mezzanine-based finance at a low rate to help bridge the gap between debt and equity investment – in turn, helping to fill the investment funding gap for UK companies of less than £25m turnover. The Growth Capital loan is part of Santander’s Breakthrough programme which aims to support fast-growth small businesses to help them accelerate their growth potential. As well as funding, Breakthrough offers companies access to trade missions, business masterclasses, networking events and support in areas such as finance and marketing.
Muc-Off also recently took part in a Breakthrough Masterclass with Richard Canterbury from Love Smoothies, focusing on marketing opportunities for the brand. As well as a general marketing overview, it also received an individual step-by-step session on how to apply the strategic processes used by top marketing agencies to help it assess its overarching marketing strategy as well as its position in the marketplace.
Alex Trimnell, managing director and founder of Muc-Off, said: “This is an exciting time for us. The recent successes of Chris Frome and Bradley Wiggins in the Tour de France and 2012 Olympics, along with a renewed emphasis on health and exercise, have seen a jump in the popularity of cycling as a sport and hobby. Our purpose-designed products are easy to use and gentle on bike equipment, which can be highly-specialised and expensive. As a result we are seeing an increase in demand, and feel that now is the right time for us to be taking advantage of this upward trend.
“However, getting investment finance can be tough for a company like us. We are young and enthusiastic and part of a niche market that is not always understood by investors. Santander’s Growth Capital package is a great way to mix traditional debt funding with flexible investment finance, and the bank’s commitment to learning about our industry and business model has enabled them to gain the understanding they needed to support our vision and ambition.”
Darren Hart, head of Growth Capital at Santander Corporate & Commercial, said: “We know that this type of Growth Capital investment can be a lifeline to small businesses looking to expand without giving up a slice of their company. Muc-Off has a fantastic range of products and is already well known within its current market, but as the popularity of cycling makes it more than just a sport, the company has a great opportunity to establish itself as part of this lifestyle by the way it markets itself. We are delighted to be supporting them in this process.”
