14 July 2010
Exception raises £13million, secures new facilities
UK electronics contract manufacturer, Exception, has raised £13million to invest in new facilities and future growth.
The deal was led by ceo Craig Wright and Exception's senior management, and was backed by Lloyds Banking Group. As well as securing new facilities, it reduces the legacy balance sheet debt of Exception by £12.7m. The business says it now aims to increase its annual turnover from a low point last year of £45m to £70m over the next two to three years.
Exception employs approximately 350 people across UK sites in Calne and Tewkesbury, together with overseas operations in India and Malaysia. The company recently signed a number of major new contracts worth over £5m per annum for its offshore, UK contract manufacturing and pcb operations. The business predicts strong growth for its outsourcing services from the green energy, oil and gas, measurement, process control and medical equipment markets.
Chief executive officer of Exception, Craig Wright, pictured, said: "This refinancing is a huge boost to our business as it provides a stable and solid financial platform from which to grow. The management have worked hard over the last 18 months in an uncertain market to maintain high service levels with our customers and grow our market share. This refinancing demonstrates that financial institutions are willing to support UK manufacturers, as long as they can demonstrate a credible track record and a robust profitable strategy for the future.
"The deal puts Exception in a very strong position for future growth, as it provides new working capital facilities with excellent cash headroom. Most significantly, it improves our debt/equity ratio from 2.3 to just 0.2, having removed £12.7m of debt from the business, leaving a £2m term loan repayable over five years."
With its new funding structure in place, Exception expects to accelerate its investment programme in new technology and service.
Author
Chris Shaw
Supporting Information
Websites
http://www.exceptiongroup.com/
Companies
Exception PCB Ltd
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