Electronics manufacturer Davlec has secured a six-figure Development Bank of Wales loan to expand its agri-tech and sub-contract business.
Founded in 1983 by her parents Glyn and Sue Davies, electronics manufacturer Davlec is managed by Nia Davies. From its origins designing, manufacturing and servicing equipment for the dairy parlour Davlec has grown to provide a full sub-contract electronics manufacturing service to customers from across a wide spectrum of industries.
The Welshpool-based company initially approached the Development Bank for support during the Covid-19 pandemic through the Covid-19 Wales Business Loan Scheme. Nia and the team, working with their portfolio executive Stewart Williams, identified an opportunity to grow their business by making advances in their agricultural electronics offering and expanding the capabilities of their manufacturing plant. To support their growth plans, Davlec secured a six-figure follow-on loan from the Development Bank.
Davlec’s expanded agri-tech business designs, manufactures and provides whole-life equipment servicing for a variety of agricultural needs.. They also provide manufacturing solutions, from prototyping to scaled manufacturing, for a range of electronic control systems – including everything from waffle making machines to scientific instruments.
Nia said: “We initially got in touch with the Development Bank of Wales to secure funding during the Covid-19 pandemic. This supported us through lockdown, allowing us to continue to expand during a challenging time. Working with our portfolio executive Stewart we identified areas for business growth. We were then able to secure a follow-on loan to continue to develop our business. We’ve seen an increase in demand for our services in recent years and have been able to use the funding to take advantage of this, as well as pushing forward with our plans to further diversify our customer base.”
The loan was used to purchase new machinery, make property upgrades and for working capital. This latest finance round complements grant funding received from Innovate UK to research cutting edge solutions to improve dairy farm efficiencies.
Portfolio Executive Stewart Williams structured the deal of behalf of the Development Bank. He said: “Nia and the Davlec team run a highly skilled electronics design and manufacturing business. Nia saw an opportunity to expand the company’s bespoke agri-tech business and we were delighted to be able to support her with investment to do this. It is great to see a company growing from strength-to-strength in the wake of the Covid 19 pandemic.”
Funding for the deal came from the Wales Flexible Investment Fund. The £500 million fund is for investments between £25,000 and £10 million with flexible repayment terms up to 15 years. Loans, debt and mezzanine finance is available.