A Newcastle-based HR firm that “uplifts other businesses” is set to expand its services and client base following a five-figure investment from the Northern Powerhouse Investment Fund II (NPIF II), managed by NEL Fund Managers.
Sapphire HR, which offers tailored HR solutions for small businesses, has been preparing for growth after moving to larger premises at Clavering House in Newcastle’s city centre earlier this year.
Bosses say the funding will enable the firm to recruit two additional HR advisers, implement a targeted marketing strategy, “dramatically” grow its client base, and “significantly” increase its turnover over the next 12 months.
The company has also introduced a new product, HR in a Box, aimed at businesses with fewer than five employees, providing affordable, all-inclusive HR support at a critical time for small firms managing recent regulatory changes.
Michael Dobson, founder and managing director of Sapphire, as well as a 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.”
Susan Snowdon, investment executive at NEL, added: “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.”
Michael Cantwell, corporate finance partner at Clive Owen LLP, who introduced Sapphire HR to NEL Fund Managers, added: “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.”
Celebrating six years in business, Sapphire HR has recently launched a series of events to provide North East businesses with HR insights and training, including the inaugural event at St James’ Park, as it looks to widen HR knowledge and skills in the North East business community.
The £660 million NPIF II fund, which is administered by the British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses, driving innovation and creating opportunities for businesses to grow, scale, and thrive.
Sarah Newbould, senior manager at the British Business Bank, added: “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.”
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