Sapphire HR drives growth and seizes new market opportunities with latest investment

We’re excited to announce that we are set to begin rolling out our ambitious expansion plans thanks to a five-figure loan from NPIF II – NEL Smaller Loans Fund, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II). 

We’ve been preparing for rapid growth over the last 12 months, particularly since moving to our bigger and better premises at Clavering House in Newcastle city centre in June 2024. We have spent this time developing our service offering and investing in new IT infrastructure. 

To support the next stage of its growth, our management team has worked with NEL Fund Managers to secure the investment needed to recruit two new HR advisers, develop our marketing strategy, grow our client base, and more than double turnover in the next year. 

We have also launched a new service tailored to support smaller businesses. “HR in a Box” has been designed specifically for businesses with fewer than five employees, providing them access to all-inclusive, yet affordable support. 

This exciting new product comes at a crucial time as small business owners are set to navigate a host of new human resource challenges, including recent changes to the national minimum wage, national insurance contributions, and the upcoming employment rights bill.  

Additionally, we recently celebrated our six-year anniversary with the launch of a new event series designed to provide North East businesses with valuable HR insights and learning opportunities. The first event, held at St James’ Park, marks the first in an initiative to increase the HR knowledge and skills of the wider North East business community. 

Michael Dobson, our founder and Managing Director, said: “I started Sapphire HR with a vision to support businesses who may not have the budget to hire a larger consultancy firm or the time or skills to manage their own HR function.  

“We pride ourselves on offering the same products and services as our larger competitors but with a much more personalised offering. Six years on, I’m delighted with how the business has developed. 

“We have a number of loyal customers who we’ve worked with since 2018 and now, with substantial planning and the investment from NEL, we’re looking to increase our client base dramatically.  

“There are some major employment-related changes happening and we needed to scale to support many more businesses which will need professional HR support to navigate their way through them.  

“I found working with NEL brilliant. The process was really straightforward, and I actually found it extremely helpful to get constructive feedback on our plans. It’s a relationship I look forward to continuing over the next few years.” 

Susan Snowdon, Investment Executive at NEL, added: “The Sapphire team presented a thorough review of the business’s growth potential and the robust plans they have in place to take advantage of the opportunities in front of them.  

“It was a pleasure to work with Michael and I look forward to seeing his and his team’s hard work pay off with the backing of NEL’s investment.” 

Sapphire HR was introduced to NEL Fund Managers by Michael Cantwell, Corporate Finance Partner at Clive Owen LLP. Michael Cantwell said: “We were delighted to support Michael throughout the process in collaboration with the NEL Fund Managers team.  

“Sapphire HR is well-positioned for further growth and expansion, and we look forward to continuing working with Michael and the wider team to help them achieve their ambitious business goals and aspirations.” 

Sarah Newbould, Senior Manager at the British Business Bank, said: “By backing Sapphire HR, NPIF II isn’t just funding a business; it’s empowering a business that is also equally committed to supporting SMEs in the North East. 

“The investment opens doors for Sapphire HR to uplift other small businesses in the region, providing tailored HR advice that fuels growth and success. This, in turn, strengthens the whole of local economy and positions the North East as a hub for thriving businesses.”