HydroSurv secures £150,000 export loan to back Exeter jobs

Exeter-based HydroSurv has secured a £150,000 government-backed trade loan to deliver self-driving boats to Norway and Italy, supporting plans to expand its workforce from 12 to 19.

Nighthawk Export Finance has issued the loan with a guarantee from UK Export Finance, the government’s export credit agency. The funding provides working capital for overseas orders, as reported by GOV.UK Business.

What happened

The finance addresses the gap between HydroSurv paying to manufacture its vessels and receiving final payment from customers. It will allow the business to fulfil international contracts without having to fund the full production cycle from its own resources.

Seven highly skilled roles will be added at the company’s Exeter facilities as export activity grows. The recruitment represents an increase of more than half on its existing 12-person workforce.

Nighthawk Export Finance is a non-bank lender. Its involvement gives HydroSurv access to a trade loan supported by a government guarantee, rather than an equity investment in the business.

The arrangement differs from other recent funding for technology development, including Neela Biotech’s £2.1m raise for a waste-to-aviation-fuel pilot: HydroSurv’s loan is directed at delivering customer orders.

The background

Founded in 2019, HydroSurv designs and manufactures unmanned surface vessels, known as USVs. These self-driving boats carry out marine surveying and environmental monitoring, tasks otherwise undertaken using conventional crewed workboats.

Its range uses electric and battery-hybrid propulsion designed for low- to zero-emission operations. The vessels collect data used in offshore wind development, flood-risk management and the protection of coastal infrastructure.

HydroSurv secured its first export order in 2021. It has since deployed more than 30 vessels worldwide, with international markets now accounting for approximately 95% of its business.

That overseas exposure makes the financing of export production particularly important to the company. Its latest support sits alongside other forms of backing for specialist technology businesses, such as MintNeuro’s £3.8m funding to commercialise neural chips.

What people are saying

Martin Brooks, UK Export Finance’s export finance manager for Devon, said working with a non-bank lender such as Nighthawk gave the agency more flexibility to help innovative businesses fulfil export opportunities. He pointed to HydroSurv as an example of the South West’s marine autonomy sector.

HydroSurv said demand for its technology had increased as organisations sought more efficient, lower-emission ways to conduct marine surveys and monitoring. It said the financing enabled it to accept larger international orders while continuing to invest in staff and capabilities.

Nighthawk Export Finance described its support as helping the maritime business scale up, while backing skilled employment and the supply chain behind its vessel technology.

UK Export Finance said partnerships with lenders such as Nighthawk widened the financing available to smaller companies and reduced the risk of export opportunities being missed. That focus on business growth also features in the government’s £1bn innovation plan and mayoral funding proposals, although HydroSurv’s loan is backed through export finance.

What happens next

HydroSurv will use the working capital to fulfil the Norwegian and Italian orders. Against a backdrop of growing demand for unmanned vessels, the company expects to triple its revenue within three years.

The deal also contributes to a wider export push. By 2029, UK Export Finance aims to help UK companies secure more than £12.5bn of new export contracts through its finance offer.

In the last financial year, the agency provided more than £11bn in loans, guarantees and insurance. It said that support sustained up to 85,000 jobs and contributed up to £6.4bn to the economy.