25 June 2012
Press ReleasesThames Valley and South Coast accountants and business advisers James Cowper Kreston has played an important role in helping novel imaging company LumeJet secure £1.87m of angel investment.
Coventry based LumeJet has developed a new LED imaging technology that can provide high precision ‘printed’ solutions for a variety of specialist markets. Unlike traditional print technologies, LumeJet ‘sprays’ light on to precision surfaces and has applications in the labelling, packaging and electronic markets. LumeJet believes that its technology produces the best quality printing ever achieved from a digital file.
James Cowper Kreston has acted for LumeJet and its management team since its formation in 2010, advising on previous funding rounds ensuring that investment qualifies for tax relief under the Enterprise Investment Scheme (EIS). On the latest round James Cowper Kreston, working with corporate lawyers Harrison Clark, was successful in getting HMRC agreement to innovative arrangements that ensured LumeJet is compliant with rules on maximum permissible EIS funding.
James Cowper Kreston has also helped LumeJet secure more than £200,000 in R&D Tax Credits and acts as the company’s auditors.
The injection of the new capital will see the company grow substantially over the next three years, with a forecast of over 100 new jobs being created by the end of 2014. LumeJet intends to ship 1,000 machines over the next five years from its West Midlands site, with the first available from late summer of this year.
Paul Anson, CEO of LumeJet said: “We are very pleased at the response to our offering. Attracting investment to high value manufacturing propositions can be difficult, but our angel investors have recognised the potential of the LumeJet technology. Now we can get on and deliver a digital printing system that will change the market completely for some sectors.”
Chris Lee, Partner, James Cowper Kreston, adds: “LumeJet is a very exciting company with a promising future. We are delighted with the response to this latest funding round and look forward to working with Paul and his team going forward.”
Chris adds: “The EIS offers considerable tax advantages for investors including income tax relief at 30% of the amount invested and exemption from capital gains tax on any eventual exit after three years. Tax on gains from sales of other assets can be deferred and, in the event of a loss on the investment, the loss can be offset against taxable income. In the current financial environment, small and medium companies really need to be able to offer EIS relief if they are to attract equity investment.”
Angel investment into LumeJet comes from Wren Capital, Qi3 Accelerator, Martlet, LBA EIS Roundtable Syndicate Fund, private investors from LBA and Cambridge Angels and a number of independent investors. Almost half came from existing shareholders.
Chris Lee, Partner, James Cowper Kreston LLP, Tel +44 (0)118 959 0261 or email
