Fund­ing boost will al­low firm to de­liver its or­ders

Western Mail - - BUSINESS - Sion Barry Busi­ness Ed­i­tor sion.barry@waleson­

ASOUTH Wales firm, which is the UK’s lead­ing player in the de­sign and re­fur­bish­ment of over­head elec­tric­ity trans­mis­sion lines, is poised for strong or­ganic and ac­qui­si­tion fu­elled growth after se­cur­ing a multi-mil­lion-pound fund­ing boost.

Volt­com Group, a prin­ci­pal con­trac­tor to the UK elec­tric­ity trans­mis­sion and dis­tri­bu­tion mar­ket, has se­cured new fi­nance that in­cludes an eq­uity in­vest­ment from Beech­brook Cap­i­tal.

The fund­ing, which also in­cludes debt, will also pro­vide Volt­com with the work­ing cap­i­tal to de­liver on an im­pres­sive £100m plus or­der book.

The com­pany, which is head­quar­tered in Llantrisant with of­fices through­out the UK, em­ploys more than 180 staff. It is a con­trac­tor to the UK’s ma­jor elec­tric­ity dis­trib­u­tors in the de­sign, re­fur­bish­ment and main­te­nance of low and high volt­age over­head trans­mis­sion lines.

In its last fi­nan­cial year to the end of Septem­ber this year, it dou­bled its turnover to £22m. Sales next year are pro­jected to ex­ceed £40m.

Chairman Si­mon Pankhurst said: “I am very pleased that we have been able to con­clude this deal with Beech­brook Cap­i­tal. I got in­volved with this busi­ness be­cause the team has de­vel­oped an in­no­va­tive de­liv­ery model that is aligned to our cus­tomers’ reg­u­lated tar­gets, which re­quire cap­i­tal ex­pen­di­ture of over £20bn to im­prove the elec­tric­ity in­fra­struc­ture over the next six years.

“With Beech­brook as our new part­ner, we have the cap­i­tal base to un­der­pin our or­der book and fu­ture prospects in this grow­ing mar­ket. A great fu­ture is ahead of us.”

The com­pany is also ex­plor­ing mov­ing into in­ter­na­tional mar­kets, as well as strate­gic bolt on ac­qui­si­tions.

Peter Kirt­ley as in­vest­ment di­rec­tor led the team at Beech­brook Cap­i­tal, as­sisted by Emily Collins and El­liot Gar­gan, on the firm’s in­vest­ment into Volt­com. Beech­brook Cap­i­tal will also be pro­vid­ing Volt­com with ad­di­tional fi­nance for tar­geted strate­gic ac­qui­si­tions.

Volt­com on turnover def­i­ni­tion has moved from be­ing an SME to a mid-sized com­pany.

The com­pany’s other fun­ders in­clude HSBC and Fi­nance Wales [which is now trad­ing as the De­vel­op­ment Bank of Wales], which also re­mains a share­holder.

The value of the to­tal fund­ing pack­age has not been dis­closed, but is be­lieved to be in the re­gion of £10m.

Volt­com’s man­ag­ing di­rec­tor, Mark Wright, said: “Our suc­cess in con­vert­ing to a prin­ci­pal con­trac­tor was al­ways an­tic­i­pated to re­quire sig­nif­i­cant work­ing cap­i­tal, a bar­rier in it­self to this tran­si­tion for other op­er­a­tors.

“Our val­ued cus­tomers ex­pec­ta­tions need to be ful­filled to the high­est stan­dards and we are now in a po­si­tion to con­tinue to pro­vide engi­neer­ing and project man­age­ment to the level ex­pected of a prin­ci­pal con­trac­tor.”

The fund­ing was sourced by the Gam­bit Cor­po­rate Fi­nance team of Tim Brother­ton, Sam For­man and led by part­ner, Frank Holmes. Le­gal sup­port was pro­vided by Hugh James Solic­i­tors, led by part­ner Greg Wil­liams.

Mr Wil­liams said: “We were pleased to ad­vise Volt­com on this strate­gi­cally im­por­tant in­vest­ment which al­lows Volt­com to cap­i­talise on the op­por­tu­ni­ties in its mar­ket­place go­ing for­ward. We have worked with Volt­com over the past few years on its in­vest­ments and look for­ward to see­ing the next stage of its growth.”

Mr Holmes said: “Volt­com is a per­fect ex­am­ple of the po­ten­tial for Welsh com­pa­nies aim­ing to grow into size­able busi­nesses with broad ge­o­graph­i­cal reach and led by tena­cious man­age­ment.

“The com­pany’s key draw­back was fund­ing as it had the or­der book, blue chip cus­tomers, tech­ni­cal ca­pa­bil­ity and lead­er­ship nec­es­sary to ful­fil its plan.

“We are pleased to have worked with Mark and the team to se­cure the most ap­pro­pri­ate fund­ing pack­age and new part­ner for this ex­cit­ing jour­ney. More­over, for Wales this sits well with the over­due re­cent eco­nomic fo­cus to sup­port big­ger busi­ness.”

> Volt­com Group, which has its head­quar­ters in Llantrisant, has se­cured new fi­nance, in­clud­ing an eq­uity in­vest­ment from Beech­brook Cap­i­tal

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