Date posted: 18th Dec 2024
An ambitious North East HR firm is rolling out its expansion plans with the help of a five-figure loan from NPIF II – NEL Smaller Loans Fund, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).
Sapphire HR, which provides comprehensive HR solutions designed to alleviate the stress of HR management for small business owners, has been preparing for rapid growth over the last 12 months. Since moving to its new and larger premises at Clavering House in Newcastle City Centre in June 2024, Sapphire HR has been developing its service offering and investing in new IT infrastructure.
To support the next stage of its growth, Sapphire’s management team has worked with NEL Fund Managers to secure the investment needed to recruit two new HR advisers, develop its marketing strategy, grow its client base, and more than double turnover in the next year.
Sapphire has also launched a new service tailored to support smaller businesses. “HR in a Box” has been designed specifically for businesses with fewer than five employees, providing them access to all inclusive, yet affordable support. Its new product comes at a crucial time as small business owners are set to navigate a host of new human resource challenges, including recent changes to the national minimum wage, national insurance contributions, and the upcoming employment rights bill.
Further to this, Sapphire recently celebrated its six year anniversary with the launch of a new event series designed to provide North East businesses with valuable HR insights and learning opportunities. The first event, held at St James’ Park, marks the first in an initiative to increase the HR knowledge and skills of the wider North East business community.
Commenting on Sapphire’s growth, founder and managing director Michael Dobson, fellow of the Chartered Institute of Personnel and Development, said: “I started Sapphire HR with a vision to support businesses who may not have the budget to hire a larger consultancy firm, or the time or skills to manage their own HR function. We pride ourselves on offering the same products and services as our larger competitors but with a much more personalised offering. Six years on, I’m delighted with how the business has developed.
“We have a number of loyal customers who we’ve worked with since 2018 and now, with substantial planning and the investment from NEL, we’re looking to increase our client base dramatically. There are some major employment related changes happening and we needed to scale to support many more businesses which will need professional HR support to navigate their way through them.
“I found working with NEL brilliant. The process was really straight forward and I actually found it extremely helpful to get constructive feedback on our plans. It’s a relationship I look forward to continuing over the next few years.”
Susan Snowdon, Investment Executive at NEL, adds: “The Sapphire team presented a thorough review of the business’s growth potential and the robust plans they have in place to take advantage of the opportunities in front of them. It was a pleasure to work with Michael and I look forward to seeing his and his team’s hard work pay off with the backing of NEL’s investment.”
Sapphire HR was introduced to NEL Fund Managers by Michael Cantwell, Corporate Finance Partner at Clive Owen LLP. Michael Cantwell comments: “We were delighted to support Michael throughout the process in collaboration with the NEL Fund Managers team. Sapphire HR is well-positioned for further growth and expansion, and we look forward to continuing working with Michael and the wider team to help them achieve their ambitious business goals and aspirations.”
Sarah Newbould, Senior Manager at the British Business Bank, said: “By backing Sapphire HR, NPIF II isn’t just funding a business; it’s empowering a business that is also equally committed to supporting SMEs in the North East. The investment opens doors for Sapphire HR to uplift other small businesses in the region, providing tailored HR advice that fuels growth and success. This, in turn, strengthens the whole of local economy and positions the North East as a hub for thriving businesses.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
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