TWO Dorset firms are to share in a £2.3 million business boost that will create new jobs.

Loop Technology based in Dorchester and Primrose’s Kitchen from Buckland Newton are among the companies to receive grants from the South West Growth Fund to help them expand.

The fund supports transformational projects in businesses, primarily in manufacturing, marine and digital industries across the South West.

A £139,950 grant will help high-tech business Loop Technology relocate to bigger premises at Poundbury, which will help the company achieve its growth aspirations and meet growing demand from the global aerospace industry.

Loop Technology started out designing engineering software, but now also produces a range of automation solutions, including robotics systems and carbon composites for the aerospace sector. Having secured a number of large contracts, the firm is going through a period of steep growth: its turnover has increased from £200,000 in 2009 to an expected £2.4 turnover this year.

The company, which employs 26 people, has outgrown its existing premises at Marabout Industrial Estate and is due to move into the new building over the summer. The building needs to be modernised as well as an internal restructure, to include a large workshop space, as well as laboratories and offices. Loop Technology now has a recruitment drive underway to find more specialist engineers.

Technical Director Alun Reece, who founded Loop Technology from his home in 1998, said: “The South West Growth Fund has been a key enabler for our move. Without it we would not have been able to get our new building to the high standard it needs to be.

“As we are now moving into making large components, we need enough space to accommodate large-scale machinery and our growing team, which we aim to double in the next three years. We are looking forward to having a high quality building that will give the right impression to our international clients.”

Primrose’s Kitchen is upgrading its machinery, thanks to a £42,000 grant from the fund. The funding will enable the company, which makes 100% natural raw vegetable breakfast foods, to better meet growing UK demand as well as building its export market in Europe.

Primrose’s Kitchen was launched in 2013 by Primrose Matheson, who started making natural, gluten free and vegan muesli to address her own health issues, which included chronic fatigue, ME and poor digestion. The team now produces a range of muesli, granola, nut butters and smoothies from its factory in Buckland Newton.

Now supplying to major UK outlets including Waitrose, Selfridges & Co., Fortnum & Mason and Holland & Barrett, as well as local farm shops, Primrose’s Kitchen exports around 10 per cent of its products to Spain, France, Switzerland and Norway. Having experienced such steep growth in just three years, the firm needs to upgrade all of its machinery to become more efficient and productive. With the new equipment due to be installed in June, the company is planning to grow its export markets as well as launching new products.

Primrose Matheson said: “With our existing equipment, we are really pushed to meet demand. The new machinery will not only ease our current pressure, it will also allow us to grow over the next five years.

“I am very grateful for this funding, which is a fantastic opportunity for a small business, and the help that we’ve had from the grants team. Having advice from SWMAS has been invaluable in helping me understand what machinery we need to position ourselves for expansion in the UK and overseas.”

The South West Growth Fund was launched last year by Plymouth University’s GAIN team, SWMAS Ltd, Bournemouth Water Business Services and the Western Morning News.

Businesses are now being encouraged to submit full applications by August 12 to have a chance of securing a slice of the remaining fund.

Eligible manufacturing businesses can access expert advice from SWMAS Ltd.

Each successful business will also receive free water and energy audits provided by Bournemouth Water Business Services.

Adrian Dawson, Head of GAIN at Plymouth University said: “The South West Growth Fund is the latest round of RGF funding to have been secured for the South West by GAIN and regional partners. Together these funds now total more than £20million and are forecast to support the creation of nearly 2,500 new jobs.

“As a University, we are particularly pleased that these grants will create a number of high level jobs, helping more of our graduates to stay in the South West as well as boosting innovation across the region.”

High growth businesses across the South West can still apply for grants of up to £1million by visiting: gaininbusiness.com or swmas.co.uk