Cardiff – CFI UK acted as the exclusive corporate finance advisor to Voltcom Group on its growth capital fundraise from Beechbrook Capital.
Voltcom Group, a principal contractor to the UK electricity transmission and distribution market, has secured a multi-million pound capital investment from Beechbrook Capital.
The funding package, which comprises both equity and debt, provides Voltcom with the working capital to deliver its fast growth sales projections and fulfil a secured order book which exceeds £100m.
Headquartered in Llantrisant, Glamorgan, and with offices and over 180 staff throughout the UK, Voltcom contracts with the UK’s electricity distributors in the design, refurbishment and maintenance of low and high voltage overhead transmission lines.
A Fast Growth 50 winner, it is expected to report revenues of £22 million for the year ended 30 September 2017, more than double the £10m achieved in 2015. Next year’s turnover is projected to exceed £40 million. This growth has been delivered by an ambitious management team which has succeeded in expanding the business from a supplier of skilled labour to the electricity transmission sector to a full EPC service provider.
Simon Pankhurst, chairman of Voltcom, said “I am very pleased that we have been able to conclude this deal with Beechbrook. I joined Voltcom because its team had developed an innovative delivery model to help our customers meet their regulated targets, which are designed to improve the electricity infrastructure and will require capital expenditure of over £20 billion over the next six years. With Beechbrook as our new partner, we now have the capital base to underpin our order book and secure future prospects in this growing market. A great future is ahead of us.”
In addition to fulfilling its objectives in its core markets, Voltcom is actively exploring opportunities in international markets, as well as strategic bolt-on acquisitions.
Peter Kirtley, investment director, led the Beechbrook team, assisted by Emily Collins and Elliot Gargan. Beechbrook, recently awarded ‘Alternative Debt Provider of the Year’ at the British Private Equity Awards for the second year running, will also assist Voltcom evaluate strategic acquisitions.
The company’s other funders include Finance Wales, which is also a shareholder, and HSBC.
Voltcom managing director, Mark Wright said: “Becoming a principal contractor has required significant working capital, as we anticipated. Our successful transition has given us the additional capability that our customers in the electricity transmission and distribution market demand.”
The funding was sourced by CFI UK, whose team of Tim Brotherton and Sam Forman was led by partner, Frank Holmes.
“Voltcom is a perfect example of the potential for Welsh companies led by tenacious management to grow into sizeable businesses with broad geographical reach,” said Frank Holmes. “The company’s biggest hurdle was funding, as it already had the order book, blue chip customers, technical capability and leadership necessary to fulfil its ambition. We are pleased to have been able to work with Mark and the team to secure the most appropriate funding package and a new partner for this exciting journey.”
The transaction closed on 20 October 2017.
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