Bank of Scotland press release

Bank's Growth Equity Team Fuels Growth in Cel-F Solar

Thursday 18th October 2007

Bank of Scotland Growth Equity – a team which specialises in investing equity in early stage fast growing companies – has invested £1 million in Cel-F Solar Systems Ltd, a renewable energy company.

Headquartered in Sevenoaks, Kent, Cel-F is a renewable energy business that designs, supplies, installs and maintains renewable energy systems.  Cel-F is the contractor of choice for meeting the renewable energy needs of councils, housing associations and a blue-chip list of property developers.  Its reputation for delivery has helped Cel-F build towards a market-leading position.

Cel-F's key business areas are in the design and installation of: Solar Hot Water systems, Solar Warm Air Ventilation systems, Solar Photovoltaic roof panels, Wind Turbines, Ground Source and Air Source Heat Pumps.

Legislative framework, in particular the 'Merton Rule', Code for Sustainable Homes and increasing environmental awareness are driving high growth in the renewable energy sector - Legislation is mandating architects and developers to include a minimum of 10% renewable energy schemes in all new developments in a growing number of Local Authorities.

Commenting on the deal Alan Fry, Director of Cel-F Solar Systems, said:

"We are delighted to be working with the Bank of Scotland Growth Equity team.  As a leader in the renewable energy field, we see this investment as an opportunity to grow our business, combining superior design, installation and on-going support, together with introducing new technologies.  Our expertise enables our clients to achieve their energy efficiency goals in an appropriate and cost effective manner.  Cel-F Solar expect to increase our customer base and deliver more projects like Brighton University where we installed one of the largest solar hot water systems in the UK or the Elektron Tower Blocks in London where we installed a combination of wind turbines and solar PV to meet planning obligations."

Stephen Green, Director of Growth Equity for Bank of Scotland Corporate, added:

"Cel-F sits squarely with our strategy of investing in and building high growth companies led by first class management.  The company's growth rate is in excess of 30% p.a. over the past 3 years with turnover on track to double in the current year.  Cel-F has been quick to react to legislative requirements such as the Merton Rule - deployment of which is set to increase rapidly over the next 5 years as more planning authorities adopt this obligation.  The investment also builds on the Bank's reputation as a leading investor in the renewable energy sector."

 

Notes to Editors:

Bank of Scotland Corporate, part of HBOS Plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets.  Bank of Scotland's Growth Equity team invests in fast moving companies with at least two years track record of sales growth.  It usually invests up to £7m of equity and always takes minority stakes.