Lincolnshire Housing Partnership (LHP) have arranged a £30m 7-year revolving credit facility (RCF) with Danske Bank. The ESG ready facility includes a 15-year term option, providing further flexibility. The new facility, as well as maintaining LHP’s strong liquidity levels, supported the removal of restrictive covenants within its portfolio. Centrus acted as sole advisor to LHP and arranged the RCF. Anthony Collins advised on the corporate and legal aspects including security. Kathryn Price, executive director of finance – LHP, said: “We are delighted with our new relationship with Danske. The new facility as well as helping maintain our strong levels of liquidity, has helped facilitate the removal of restrictive covenants. This leaves LHP in a significantly stronger position to deliver our planned investment strategy and deliver better homes for our customers.” Terri McCullagh, corporate banking manager – Danske Bank UK, said: “Danske Bank has been the lead bank provider of finance to the social housing sector in Northern Ireland for many years and we have been growing our presence in the sector in the rest of the UK. We are pleased to start 2023 with a significant transaction in England which will support the provision of much needed rental and shared ownership homes to people and communities in Lincolnshire.” Tom Miller, assistant director – Centrus, said: “We are delighted to have supported LHP during the fund-raising process. The facility has helped to unlock increased capacity that will ensure LHP are able to maintain high levels of investment in their stock. Centrus has been at the forefront of developing the RP market for ESG-linked funding, where the ability to reduce borrowing costs offers tangible benefits.”

Intercede, the Lutterworth-based cybersecurity software company, is expected to report a more than 20% increase in revenue for its latest financial year. In a trading update for the year ending 31 March 2023 (FY23), Intercede said its underlying trading performance has “continued to show strong momentum.” The business is now anticipating revenues for FY23 to be just over £12m, growing from £9.9m in the year prior and ahead of market forecasts. Intercede added that the “combined effect of increased revenues and tight management of costs under the group’s control, is expected to result in improved profitability.” In October Intercede acquired Authlogics.

FourNet, the IT services company specialising in digital transformation and customer experience, has made a second significant strategic acquisition since securing investment from mid-market investor Palatine. The company has acquired Nowcomm, a cybersecurity, network infrastructure and collaboration consultancy based in Derby with 34 employees and a bluechip customer base spread across the public sector and large businesses. Founded 18 years ago by former Cisco employees Mark Lamont and James Baly who saw a gap in the market for a consultative-led Cisco business, focused on engineering and technology, Nowcomm is one of only two Cisco Gold, Master Security and Master Collaboration accredited partners in the UK. The acquisition of Nowcomm significantly enhances FourNet’s cybersecurity and network infrastructure offering to customers and brings its employee headcount to over 200. Richard Pennington, co-founder and CEO of FourNet, said: “As one of the leading Cisco partners in the UK, Nowcomm brings with it a wealth of specialist skills and expertise which will enable us to provide a significantly enhanced cybersecurity, networking and collaboration offering to our customers – from central government to blue light and other critical services. “With the post-covid convergence of the IT and communications marketplace and the increasing pace of digital transformation, it also provides Nowcomm with access to a broader spectrum of solutions and customers. Today’s strategic acquisition, and the ones to follow, will enable us to maintain our position as the partner of choice for public sector and enterprise customers.” Last year, FourNet acquired infrastructure and security firm C>Ways, and in 2021 bought ComputerTel. James Painter, senior investment director at Palatine, said: “Adding capability through strategic M&A is a key part of FourNet’s growth strategy with Nowcomm representing the second acquisition since our investment in 2021. This acquisition will enable FourNet to expand its offering to customers and we are keen to support the group in making additional acquisitions in the future. “Nowcomm is a strong cultural and strategic fit for FourNet with an excellent commitment to its customers. Its recent investment in its own security operations centre underlines its status as a best-in-class consultancy, and we see this acquisition as an important step in FourNet’s growth plan.” Alongside acquisitions, Palatine has supported FourNet’s organic growth strategy including its investment in establishing a customer experience function led by former Capita executive Oliver Bareham, who joined in summer 2022. FourNet were advised by BDO (Chris Heatlie), Gateley (Leigh Whittaker and Hannah Serene) and Megabuyte (Philip Carse). A team from Grant Thornton led by Nick Gillot advised Nowcomm’s shareholders. Nick Gillott, partner at Grant Thornton UK LLP, said: “We’re really pleased to have advised Mark and James on the sale of Nowcomm to FourNet. “Their dedication to solving customer challenges and delivering bespoke solutions, underpinned by best-in-class customer service, has created an exceptional business, with an enviable suite of Cisco accreditations. “We’re delighted that the business will be able to develop its proposition further and go from strength-to-strength under FourNet’s ownership, with the backing of Palatine.”

Foresight Group, a listed regional private equity and infrastructure investment manager, has invested £500,000 through the Midlands Engine Investment Fund (MEIF), alongside £2 million from its VCTs, into Sprint Electric Limited. Sprint Electric designs and manufactures drives for controlling industrial motors. The investment will enable the final development and commercialisation of a new range of variable speed drives (VSD) for the alternating current (AC) motor market, with power regeneration capability that increases energy efficiency. The new product will also provide access to the large AC VSD market – estimated to be valued at £16 billion per annum. Sprint Electric has worked with the University of Nottingham as part of a Knowledge Transfer Partnership – a UK-wide, part grant-funded scheme helping businesses of all sizes to innovate using the knowledge and expertise of UK universities. The company currently employs 18 people and, in 2022, reported £3 million in sales. Working with Foresight, Sprint Electric plans to use the investment to scale its operations and drive growth. At investment, Tim Routsis will join the board as non-executive chair. Tim’s background includes 10 years as Managing Director of automotive engineering company Cosworth and eight years as CEO of Cox Powertrain. His expertise will help the company grow and significantly increase its market share. Commenting on the investment, Gary Keen, co-Managing Director of Sprint Electric, said: “We are excited to work with an investment partner who shares our passion for green energy and understands the potential of the drive technology we have developed with our colleagues at the University of Nottingham. “We welcome the appointment of Tim to the board and the wealth of experience he has in leading cutting-edge engineering businesses. This will be invaluable as we commercialise the new product range, expand our operations footprint and accelerate our sales growth.” Hugh Minnock, investment director at Foresight, added: “It is great to support Sprint Electric as they look to bring a new product to market. With our investment and support, the team will be in a great position to benefit from the potential market opportunities. We look forward to working with Mark, Gary, Tim and the rest of the team to enable the next phase of their growth.” Tim Routsis, chair, concluded: “I am delighted to join the Sprint Electric team at such an exciting time in the company’s history. With Foresight’s support, Sprint Electric is in a good position to bring new products to market. This will materially grow the business, which already has an impressive export record.”

In an update on trading ahead of its financial year ending on 30 April 2023, Van Elle, the Nottinghamshire-based ground engineering contractor, has hailed revenue growth approximately 20 per cent ahead of its previous year. The company’s trading performance since its announcement of interim results in January, however, has been subject to the impact of industry-wide softening and investment delays due to macro-economic factors in the housing and infrastructure markets. Despite these challenges, the firm says it remains on track to deliver profit before tax for FY23 in line with previously upgraded expectations. Looking ahead, with industry forecasts expecting weaker market conditions to continue into the new financial year, particularly in the new-build housing sector, Van Elle says it is undertaking “a range of cost saving measures to support margins” and has “made strategic progress on new growth opportunities.” This includes the launch of the Smartdeck foundation system and the incorporation of Van Elle Canada Inc.

Full year revenue is up 10% at iconic Northamptonshire brand Dr. Martens, according to a new trading update. The end of the year saw Q4 revenue up 6%, driven by strong direct-to-consumer (DTC) growth in EMEA and APAC, though this was offset in part by continued soft DTC in America. During the quarter wholesale revenue was down, due mainly to operational issues at Dr. Martens’ LA distribution centre (DC) and planned shipment reduction to the company’s China distributor. The business says it now expects FY23 EBITDA to be around £245m due to higher costs at the LA DC and lower wholesale revenue. Looking ahead Dr. Martens are maintaining FY24 revenue growth guidance of mid to high single digits. Kenny Wilson, Chief Executive Officer, said: “Full year revenue was up 10% with Q4 up 6%. In constant currency, full year revenue was up 4% with Q4 level with last year. By channel, Q4 growth was driven by strong DTC trading, led by retail growth of 36%, or 28% in constant currency, but this was offset partly by wholesale being behind last year. “Within our regions, EMEA DTC accelerated in Q4 while America DTC remained soft. We took decisive action to tackle the operational issues at our LA DC with shipments now back to normal levels. However, costs associated with resolving these issues were higher than our initial estimates which, in conjunction with softer Q4 wholesale revenue, means we expect EBITDA for the year to be around £245m. “We continue to adopt a custodian mindset, taking decisions in the best long-term interests of all our stakeholders, and I believe firmly in the DOCS strategy, the continued strength of the Dr. Martens brand and the medium to long-term growth potential of the business. I look forward to sharing more details at the full year results.”

Derbyshire-based KJB Global Consulting has acquired one of the UK’s largest independent metals recycling operators, Peterborough Metals Recycling (PMR). PMR, which has traded successfully as BW Riddle for more than 67 years, has been acquired as part of a transaction backed by industry veteran Tom Bird and Harwood Private Capital. The combination of a leading metals broker with an established metals recycling operator creates a vertically integrated, ESG-focused, metal recycling business of scale resulting in an ideal platform for future acquisitions. The two businesses, which will continue to trade as separate entities, will have a total of 70 employees, a combined turnover of £79m and an EBITDA of c£11.9m. The deal involves the retention of all existing PMR staff, with plans to create additional jobs as part of its growth plans. The deal was facilitated by Tom Bird, who takes a commercial interest and active role with the new organisation. Tom Bird is the current president of the Bureau of International Recycling and the former Managing Director, Chief Operating Officer and Chief Trading Officer of Scholz Recycling and Chiho Environmental Group, one of the largest recycling businesses in the world and is listed on the Hong Kong Stock Exchange. Tom Bird, whose previous roles also include Managing Director of Sims UK and Van Dalen UK, saw the potential for the two organisations to join forces and brought in boutique advisory firm, Lexington Corporate Finance. Lexington subsequently introduced both parties to private equity firm Harwood Private Capital, which will now take a stake in the business. KJB Global Consulting is owned by James Bowers and supports clients across Europe, including foundries, industrial plants, mining and metals companies. The firm advises owners and management teams on growth and risk management strategies and also shipped over half a million tonnes of scrap metal on its own chartered vessels in 2022. Following the integration of PMR into its business, it now has the ability to process more than 100,000 tons of inbound material a year. The complex nature of the deal required a breadth of advisory support, involving a number of UK firms. James Bowers and Tom Bird were advised on the deal by Lexington Corporate Finance and Capital Law. PMR was advised by Grant Thornton and Mills & Reeve, while Harwood Private Capital was advised by PKF Francis Clark and Gateley Legal. “The acquisition of PMR is the next key step towards an ambitious growth plan for KJB,” said James Bowers, CEO of KJB Global Consulting. “Having someone with the experience of Tom Bird, an industry veteran with over 30 years in the metal recycling sector, investing and taking an active role in the business is fantastic. Bringing private equity investment into the equation, allows for an unrivalled and aggressive buy and build strategy. PMR will be the first of many acquisitions and we are already working on number two. “PMR has a long heritage and is widely known across the UK metal recycling market with an excellent reputation. As a business it is also an established processor of secondary metals with a state of the art infrastructure allowing KJB to move from solely being a ‘trader’ to operating physical processing sites. We are excited about the merger of these two strong businesses, incorporating the outstanding and experienced PMR staff with the existing KJB team. It is going to be an exciting period in the company’s history.” “The synergy between the two organisations and the potential for future growth has been a driving factor in this deal from the outset,” said Sinead Johnson, who led the advisory team, which included Courtney Mattocks and Pablo Shorney from Lexington Corporate Finance. “The mix of debt and private equity finance, the involvement of different entities and the plans for full integration of the businesses has been complex in nature. The pragmatic and collaborative approach adopted by all parties has created a major player in an industry that is undergoing major change and is pivotal to the growth and decarbonisation aspirations of governments and companies across the globe.” Stuart Davies, Director at Grant Thornton in the East of England, added: “We are delighted to have supported the Riddle family through this transaction, enabling the business to move forward under its new ownership. We wish everyone involved all the best for the future.” Jonathan Wheeler, who led the deal for Harwood Private Capital, said: “The combination of a leading metals broker with an established metals recycling operator creates a vertically integrated platform from which to create an ESG-focused, metal recycling business of scale. “I look forward to working with Tom and James to integrate and drive the business forward, both organically and through acquisition and would like to thank the team from Lexington Corporate Finance, our lawyers, Gateley PLC and PKF Francis Clark who provided the financial due diligence.”