Core Capital Partners LLP (Core Capital) has invested in Turbine Efficiency Group, to support the business in it's next phase of growth.
Turbine Efficiency is a specialist engineering company based in Lincoln, England. The Group is a leading provider of maintenance, repair and overhaul services for industrial gas turbines. It's longstanding customer base ranges from large global multinationals to smaller industrial conglomerates, in the power, oil and gas, and industrial sectors.
Core Capital is an experienced provider of capital for growth, investing up to £25m in UK SMEs, and partnering with ambitious management teams looking to scale their operations and accelerate growth. The investment enables Turbine Efficiency to meet the high demand for its services from new and existing customers, and leverage its state of the art facility in Lincoln.
Robert Johnson, Executive Chairman, commented: “The investment from Core Capital marks a new phase for Turbine Efficiency. There is excellent market growth potential, and this investment will enable the team to attain such opportunities, both within the UK and globally. We are committed to serving our loyal clients to the highest standards as their reliable partners in power.”
Stephen Edwards, Managing Partner, Core Capital: “There is significant global demand for independent maintenance, repair and overhaul services, and we believe the team at Turbine Efficiency is uniquely positioned to capture this opportunity. We have experience working with SMEs to take them to the next level of growth and will be looking to invest further capital into TEL in order to fund acquisitions and further organic growth."
Interview with Sorca Hunt, Director of BTG Financial Consulting LLP and Mark Fry, Partner of BTG Financial Consulting LLP:
- Please tell me about your involvement in the deal?
We were appointed as advisors to Core to undertake focused financial and commercial due diligence, to assist in their decision whether to invest in this business.
Our primary focus was to ascertain the business’s ability to generate future and sustained revenue based on its existing client base, alongside assessing the level of overheads that were considered appropriate and necessary. A further key focus of our work was to assess the short-term cash requirement of the business whilst sensitising the timing of receipts, to ensure the business had sufficient funding to comfortably meet its liabilities, prior to any investment made by Core.
During our work, we undertook a detailed review of the Group’s forecast model, challenging the assumptions as appropriate, both with regards to revenue and overheads. We provided assistance and guidance to the Finance Director as required, given that the due diligence process required a lot of involvement from him whilst also continuing with his day to day job.
- Why is this a good deal for all involved?
The Company needed external investment in order to meet existing liabilities and also to provide the Company with a funding platform to allow expansion both with existing and new customer relationships.
Core's investment has stabilised the business financially and has provided a stable platform for future growth. Moreover, Core’s commercial experience, skill set and global contacts will compliment and assist with the business’s growth plans.
- What challenges arose? How did you navigate them?
As is the nature of the industry in which we operate, our due diligence work had to be completed within a relatively short timescale due to the business's need for investment. We ensured our team was suitably resourced with the required skill, so that any issues could be identified as soon as possible.
Our work involved spending considerable time on site and working closely with the management team, who were very co-operative. The highly skilled work force is clearly a key asset in this business.
Whilst the company had produced a cost saving plan, it was key to ensure that sufficient resources, and an appropriate structure was maintained in order to support the growth plans.
