Solent Automation Ltd Company Profile

Background

Solent Automation Ltd, established on December 2, 2019, is a UK-based company specializing in affordable end-of-line robotic packing and palletizing automation systems. The company's mission is to democratize robot ownership in UK and European factories, enabling owners to boost productivity. Solent Automation focuses on providing solutions for manual labor-intensive tasks in fast-moving consumer goods (FMCG) factories, aiming to enhance operational efficiency and reduce reliance on manual labor.

Key Strategic Focus

Solent Automation's strategic focus centers on developing standardized, cost-effective robotic solutions that can be mass-produced and quickly delivered without the need for extensive customization. Their product offerings include:

• Solpal Mini: A compact single-station robot palletizing machine occupying only 4.8m² of factory floor space, capable of handling payloads up to 25kg with 10 cycles per minute.

• Solpal Mate: A two-station, non-stop robot palletizing machine designed for continuous operation with a maximum speed of 10 cycles per minute.

• Sol Copal: An intelligent and flexible two-robot case erecting and packing machine suitable for various industries, offering flexibility for frequent product type switchovers.

• Solcar 1000: An autonomous mobile robot fully integrated for pallet handling, capable of handling payloads up to 1000kg, enhancing factory automation and aligning with Industry 4.0 standards.

These solutions are designed to be easily operable, have a small footprint to fit current human labor spaces, and offer fast changeovers, low maintenance costs, and quick payback periods.

Financials and Funding

In August 2024, Solent Automation successfully raised £369,573 through an equity crowdfunding campaign on Seedrs, surpassing their initial target of £300,000. The pre-money valuation at that time was £9 million, with 3.92% equity offered. The funds were allocated as follows:

• 30%: Build and deploy 10 "Rent-a-Robot" machines into the market.

• 30%: Working capital to manage cash flows.

• 20%: Research and development for enhanced in-house user interface machine software.

• 10%: Marketing and exhibitions.

• 10%: Office and factory extension to increase production capacity.

As of December 31, 2023, the company's financials reported:

• Cash in Bank: £389,910

• Total Assets: £743,680

• Total Liabilities: £293,840

• Net Assets: £449,840

The company achieved £1.35 million in sales from January to December 2023, marking a 2.5 times growth compared to the previous year, and reported profitability in 2023.

Technological Platform and Innovation

Solent Automation distinguishes itself through the development of standardized robotic solutions that do not require extensive customization, allowing for mass production and scalability. Their machines are designed with:

• Industrial Robots/Collaborative Robots (COBOTs): Ensuring flexibility and adaptability to various tasks.

• Standardized Tools: Minimizing the need for format parts and enabling fast changeovers in less than two minutes.

• Low Maintenance Costs: Utilizing off-the-shelf wearable parts to reduce operational expenses.

• Modular Systems: Allowing seamless integration into existing production lines and easy relocation within the factory floor.

The company's "Rent-a-Robot" model offers a pay-per-hour machine rental service, enabling clients to implement state-of-the-art palletizing robots and autonomous mobile robots without upfront costs, starting at £12.50 per hour.

Leadership Team

Solent Automation's leadership comprises experienced professionals with strong backgrounds in manufacturing and sales, including:

• Mario Smrcek: Chief Executive Officer

• Karlo Lackovic: Chief Technology Officer and Director

• Andy Binnendijk: Chief Financial Officer

• Chris Dodd: Engineering & Mechanical Design Manager

• Alan Doult: Head of Robot Programming Department

• Ian McArdle: Head of Software Development

• Iliaz Iliazov: PLC Programmer

• James Sutton: Head of Assembly Department

• Ivan Levatic: Electrical Engineering Manager

• Sreemangal S. Kumar: Electrical Engineer

• Clifford Sparks: Mechanical Engineer

• Alan Waller: Mechanical Engineer

This team combines expertise in robotic and design engineering, software development, and financial management to drive the company's mission forward.

Leadership Changes

On July 6, 2023, Adrian Gander resigned from his position as a director of Solent Automation.

Competitor Profile

Market Insights and Dynamics

The UK manufacturing sector comprises approximately 136,000 businesses, including 1,000 large manufacturing enterprises with multiple production lines requiring products or boxes to be placed on pallets. Challenges such as labor shortages, fatigue, repetitive strain injuries, and unmotivated employees are driving the demand for automation solutions. Solent Automation addresses this market by offering affordable and flexible robotic systems tailored to these needs.

Competitor Analysis

Key competitors in the robotic packing and palletizing automation sector include:

• Bulk Automation: Specializes in bulk material handling systems.

• Frontline Packaging: Offers packaging machinery and solutions.

• Springvale Equipment: Provides automation equipment for various industries.

• Geku Automation: Focuses on robotic automation solutions.

• Granta Automation: Delivers bespoke automation systems.

These companies offer similar automation solutions, making the market competitive. Solent Automation differentiates itself through its standardized, cost-effective products and innovative rental models.

Strategic Collaborations and Partnerships

Solent Automation has established significant partnerships to enhance its market position and innovation capacity, including:

• FANUC UK: Participated as a preferred palletizing supplier in the FANUC OPEN HOUSE 2023 exhibition.

• Premier Foods and Clover Chemicals: Recognized as a preferred supplier of palletizing and packing robot machines.

• Huhtamaki: Serves as a supplier to this global packaging company.

These collaborations strengthen Solent Automation's credibility and expand its reach within the industry.

Operational Insights

Solent Automation's strategic considerations include:

• Standardization: Developing machines that do not require customization, allowing for mass production and scalability.

• Flexibility: Designing compact, movable machines that can be easily integrated into existing production lines.

• Affordability: Offering cost-effective solutions and innovative rental models to lower the barrier to entry for automation.

These factors provide distinct competitive advantages in a market seeking efficient and adaptable automation solutions.

Strategic Opportunities and Future Directions

Solent Automation's strategic roadmap includes:

• Expansion of "Rent-a-Robot" Model: Increasing the deployment of rental machines to provide flexible automation solutions without upfront costs.

• Research and Development: Enhancing in-house user interface machine software to improve usability and functionality.

• Market Penetration: Targeting additional large manufacturing enterprises requiring palletizing and packing solutions.

By leveraging its current strengths and focusing on these areas, Solent Automation aims to solidify its position as a leader in affordable robotic automation.