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28th November 2008
CAT.166
CATAPULT ‘BUCKS’ THE TREND IN RECORD BREAKING YEAR
FOR DEAL TRANSACTIONS
Catapult Venture Managers continues its record breaking year with a further transaction being completed in November – bucking the gloomy economic outlook and the credit crunch.
Key Technologies raised £1.8m through flotation on virtual trading platform Investbx, with Catapult investing £850k. The Catapult investment was led by Rob Carroll and Ray Harris of Catapult. The company will be using the new equity funds secured during the Investbx admission process to invest in carefully targeted acquisitions with a view to seeking a quotation on the Alternative Investment Market (AIM) within the next three years.
Rob Carroll, Managing Director of Catapult commented: “This was our 26th transaction of this year and demonstrates how flexible we can be when it comes to investing with different types of partner and different fund raising mechanisms.
“The economy may not be in great shape but we continue to invest in well run businesses and our doors are well and truly open for business. Catapult enjoyed its most buoyant third quarter ever completing eleven transactions during this period.
“Our transactions during 2008 have included the multi-million pound buyout of BWB Consulting Ltd, a significant investment into e-learning specialist AtlanticLink Limited; and an investment of up to £550k into CellAura Technologies Ltd. Among our other investments has included the BIMBO of Sight and Sound Technology in Northampton: one of the UK’s leading suppliers of IT products and services for people who are blind, visually impaired or have learning difficulties,” he said.
Catapult Investment Director Ray Harris added: “Most people may be surprised by the size of the transactions that Catapult is getting involved in. The Key Technologies, BWB and Sight & Sound deals go to show that with equity available of up to £2m available, we are able to provide meaningful levels of equity to larger businesses than is historically associated with our funds. Our strong deal flow and completion levels also show that we continue to invest at a time when other equity players are being more reserved. Delivery is the key buzzword in the market at the minute and that's exactly what we are doing."
Key Technologies - formerly known as STS International Limited - changed its name on admission to Investbx to reflect plans to acquire companies with distinctive brands outside the established “STS” brand name.
It operates through four divisions at four sites around the UK, including its HQ and manufacturing base at Cradley Heath in the West Midlands. It has 232 employees and sales of £18.7m in the year ended 30 June 2008
In the same year, the company reported earnings of £2.3m, up from £1.4m in the previous year.
The group’s customers include the Ministry of Defence, BAe Systems, Thales, and Network Rail.
When Investbx was launched last year, it was tasked with helping the region bridge the £500,000 to £2 million equity gap by connecting investors with businesses in the West Midlands.
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For further information please contact Rob Carroll at Catapult Venture Managers on 0116 238 8200 or 07976 226252, Ray Harris at Catapult Venture Managers on 0121 616 0180 or 07905 349742; or Paul Shrimpton at PSPR Ltd on 0121 354 7311 or 07979 505322
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