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Vets’ practice secures £400k NPIF II funding to create new purpose-built clinic

Press release 03 December 2024

An independent Newton Aycliffe vets’ practice has raised £400,000 from NPIF II – Mercia Debt Finance, which is managed by Mercia Debt as part of the Northern Powerhouse Investment Fund II (NPIF II), to create a new purpose-built town centre clinic.

Portrait image of the team from Saw Paws
L-R, Harriette Alderson, Paul Grace, Natasha Redpath, Aaron Holmes and Gary Whitaker

Sore Paws Veterinary Clinic has taken on 2,800 sq ft of space at Cobbers Hall Shopping Centre, which is three times the size of its existing surgery and currently being fitted out. The new facilities will include five consultation rooms, two operating theatres, a laboratory and X-Ray room, as well as separate areas for cats and dogs and a bereavement room with a separate entrance.

The practice will retain its existing premises – a 900 sq ft unit within the same shopping centre - but use it to house CT scanning facilities which will be available for hire by other vets in the area. It is also planning to take on additional staff, increasing the number of vets from four to seven and the number of nurses from six to nine.

The NPIF II funding will help to cover the cost of fitting out the new facility, buying additional equipment and provide additional working capital for growth.

Sore Paws was founded in 2015 by Dr Sarah Holmes. After qualifying as a vet, she worked in locations around the world – including a charity for street dogs and cats in India, and in wildlife conservation in Africa – before returning to the North East and taking over an ailing practice.

She  was joined soon afterwards by her husband Aaron, who had previously spent 20 years in the Merchant Navy and who took on the role of Practice Manager. The couple now also run a second practice, Blue Star in Winlaton, which they acquired in 2018.

Sore Paws has treated around 6,000 pets over the past 12 months and has over 48,000 registered in total, with the number increasing by over 100 each month. Its revenue has almost doubled in the past three years.

Dr Holmes, Veterinary Director, says:

We are an independent practice that aims to combine modern medicine with old-fashioned care. With veterinary practice evolving fast, we believe it is important to keep up to date. The funding will enable us to stay at the forefront and offer a modern, purpose-built surgery with all the latest equipment while retaining the ‘village vet’ feel and our trusted relationship with clients.

Gary Whitaker of Mercia Debt adds:

Sarah and Aaron have built a successful and growing practice but their existing unit was very cramped and they urgently needed more space. The NPIF II funding will enable them to fit out and equip their new premises and provide a more welcoming space for clients. Given the amount of new homes being built in the area, and the fact that one in three households now has a pet, it will also provide a valuable local facility for the people of Newton Aycliffe.

Paul Grace of brokers YBFA provided fundraising advice to Sore Paws.

NPIF II – Mercia Debt Finance can provide loans in the NPIF II area with a primary focus on the Yorkshire and Humber regions of City of Kingston upon Hull and East Riding of Yorkshire, North Yorkshire, South Yorkshire and West Yorkshire.

The £660m Northern Powerhouse Investment Fund II (NPIF II) 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.

Further Information

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Notes to editors

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.  

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
  • Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697

mercia.co.uk

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding.  NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development.
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

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