Case study
Founded in 1904 by Nobel Prize-winning Swedish engineer and inventor Gustaf Dalen and named after the famous ancient lighthouse of Alexandria, Pharos Marine has a heritage spanning more than a century as a pioneer in manufacturing aids to navigation.
| Region/Nation | East of England |
|---|---|
| Sector | Manufacturing |
| Programme | Debt Funds |
| Partner |
Dalén originally invented the "Dalen Flasher" and sun valve, automated devices allowed remote lighthouses to run safely and reliably for over a year without human help, winning him the 1912 Nobel Prize in Physics.
Today, the business has grown into a leading global provider of integrated navigational and aviation aid systems. It produces critical safety infrastructure including marine beacons, fog signals, helideck lighting, and aviation obstruction lights, all designed to mark high-risk offshore assets such as drilling rigs, production platforms, offshore wind farms, and bridges. Its advanced solar-powered products not only safeguard the transit of vessels and aircraft worldwide but actively assist clients in decarbonising their operations.
Serving blue-chip clients across the oil and gas, alternative energy, and ports and harbours sectors, Pharos delivers an end-to-end service model encompassing design, manufacture, installation, and decommissioning. The business employs 67 staff in the UK across its Great Yarmouth manufacturing plant and London headquarters, alongside an assembly plant in Louisiana and strategic international operations in Singapore and the United Arab Emirates.
Support from the Bank
The British Business Bank supported the availability of growth finance for smaller UK businesses through a £35m commitment in 2020 to Frontier Development Capital's (FDC) Debt LP fund. The fund provides flexible debt finance to established SMEs seeking funding for growth, acquisitions and shareholder transactions.
Pharos Marine subsequently secured a £7.5m cross-border financing package from FDC, (now part of Mercia Asset Management PLC). This vital capital package facilitated a corporate recapitalisation, providing an exit for a US shareholder while allowing Chief Executive Owen James and his management team to secure a substantial equity stake in the business.
Outcomes and Growth
The funding has provided Pharos Marine with a robust financial foundation to accelerate its strategic growth objectives. Following a period of successful operational reorganisation and post-pandemic recovery that saw turnover double, the capital injection has enabled the business to cement its market leadership.
Owen James, Group CEO, Pharos Marine:
Pharos was founded on the principle that 'the light must never go out'. More than a century later we continue to keep the lights on and provide power supplies for customers worldwide using renewable energy. This additional capital has provided a sound basis for the business to move forward and pursue our growth plans.
Justin Sorby, Frontier Development Capital:
Pharos's products play a vital role in ensuring the safety of shipping and aircraft worldwide and in energy production. The company is achieving strong growth and is well placed to benefit from transition towards renewable offshore power. We are pleased to be able to support Owen and the team as they continue to build the business.
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