Dolphin N2

Dolphin N2 Case Study by MW Interim Finance

Dolphin N2 Limited (R&D commercial spin out from Ricardo Plc)

A FTSE listed business with a global footprint recognised an opportunity to facilitate the delivery of a game-changing revolutionaryCryoPower engine technology, to produce significant reductions in CO2 emission levels coupled with fuel efficiency improvements within automotive and power generation markets. The strategy was to spin-out a major innovations project within the Group within the R&D Innovations division, with Phase I project costs to date being supplemented with grant funding. The project had now reached a critical phase with potential investor interest and the next phase of the company’s strategic development was to leverage equity investment and further grant funding, with the aim of commercialising the technology.

The Solution

  • Review, critique and update the Dolphin N2 business plan, challenging all inputs and assumptions, and up-date the financial projections for an initial five year period that would support internal and external presentations.
  • In conjunction with Dolphin N2 CEO present technical and commercial case for investment at Phase 1, valued at c£16m, at funding meetings to potential investors and support subsequent due diligence activities.
  • Design, develop and implement Dolphin N2 financial systems, controls and transactional processing necessary as part of the spin-out activities and for the future.
  • Ensure continuity and transparency surrounding the transitional arrangements between R&D Innovations division, via Ricardo UK, and Dolphin N2, interfacing with Ricardo Plc group finance as required.

The Result

  • Round one funding achieved within expected time lines to allow continuation of Phase I of the innovative emissions project.
  • Investment from an international automotive corporation gained to allow impetus of Phase I of the project to continue.
  • Setting the monitoring benchmarks and grounding for potential further investment for Phase II investment.
  • Ensuring compliance from a grant and investment perspective and setting up the stand alone corporate entity as a subsidiary of the acquiring international business.
  • Supported the CEO and Technical Director, Ricardo plc and external parties in the implementation of activities to deliver the necessary financial strategy to deliver the successful spin-out.
  • Following a recruitment exercise, the financial and commercial function was successfully handed over to a permanent finance director.

Skills Needed

  • Strategic and operational financial modelling, advisor and investor presentations, due diligence, management reporting, cash flow forecasting, inter-company reconciliations, new company start-up and company secretarial, grant application and monitoring.