York HCM software developer bags £20 million investment for expansion

A York-based developer of human capital management (HCM) software has plans to recruit more people for its team and expand its headquarters after securing an equity investment of more than £20 million.

The investment in Mitrefinch by private equity specialists LDC is part of a management buyout led by chief executive Debbie Guppy. LDC has become a significant shareholder in the company, which is headquartered in Clifton.

Mrs Guppy commented: “Our overseas plans are to ultimately grow our international offices in Canada, Australia and the US. We have already started the recruitment process in the US, and will be expanding our established teams in these territories whilst looking at the business potential in other countries.

“The news is incredibly positive for our employees based in York and as a result of the investment we will be looking to recruit around 20 more people to join the team. We also plan on expanding the office on Green Lane to accommodate this growth, and will continue to operate from York.”

Mitrefinch provides an integrated suite of HCM software handling time and attendance, rostering, HR and payroll. Its software helps more than 3,500 organisations to reduce cost while improving efficiency and meeting compliance requirements.

Customers include SMEs, mid and large corporates, public bodies, charities and higher eduction institutions, with brands such as L’Oreal, Nestle, Amec Foster Wheeler, DFS, the Forestry Commission and the University of Leicester on the books.

Mitrefinch’s revenues have grown 50 per cent over the past three years, from £10 million to £15 million. Following LDC’s investment, the firm plans to develop new and existing relationships in its more established UK business. It also plans to invest in new product development.

Jane Gilbert Boot, an investor in LDC’s Leeds office, said: “Debbie and the team have built an enviable market position for Mitrefinch, with a high-performing suite of integrated products and a loyal, fast-growing customer base.

“With significant additional capital to invest in the business, a high-quality team and a clear growth strategy, it has a real opportunity to achieve a dominant position in a growing, consolidating and globalising marketplace.”

John Garner, director and head of LDC in Yorkshire and the North East, said: “Backing Mitrefinch is another signal of our appetite to invest in the regions to support ambitious UK businesses and their management teams.

“There are dozens more firms across the region with that same potential to scale, and it’s important management teams know there are experienced partners like LDC who stand ready to support them.”

 

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