Investments designed for the future

We only invest in established and viable businesses

Investments

In October 2012 Pemberton Capital acquired the business of Cobra Automotive out of administration in a deal which saved 118 jobs.

Since the acquisition Pemberton Capital has implemented an intensive operational and financial restructuring plan in order to restore the business to stability. This has involved major changes in the management team, a refocus of strategy and re-engagement with former and prospective customers and suppliers in order to repair reputational damage caused by the administration. The business changed its name to Appplied Component Technology (ACT) in January 2014.

ACT, founded in 2002 and based in Wrexham, Wales, is one of the UK’s leading independent automotive components manufacturers. It has a current turnover of £9m and produces a range of high end interior trim products in a purpose built manufacturing facility for a number of

automotive manufacturers including General Motors, Volvo and Audi. The business has a strong reputation for technical innovation and quality.

The strategic position of the business is sound and the outlook is promising. The UK automotive trim sector is experiencing high growth following a long period of contraction. The UK car industry is currently enjoying significant growth, with annual growth in production in the year to July 2012 running at 22% and a number of carmakers such as Jaguar Land Rover and Honda having recently announced very large investments in the UK. However, the availability of UK component supply to support this production has struggled to keep up with this growth. As a result, quality local component suppliers are experiencing very high demand for their products.

Mathiesons is a substantial craft bakery business based in Scotland, originally founded in 1872. The business produces a range of high quality bakery, fresh cream and chilled dessert products in a state of the art production facility in central Scotland. With a current turnover in excess of £10 million, sales are made through 6 branded retail outlets and through a number of national retailers including Asda, Morrisons, J Sainsbury, Tesco and Aldi.

Pemberton Capital acquired a controlling shareholding in June 2011 and injected new funding for working capital and capital expenditure. In the year following the investment, Pemberton Capital undertook an intensive financial and operational restructuring of the business which culminated in a pre-packaged administration in May 2012.

In recognition of its work on the Mathiesons restructuring, Pemberton Capital won the Business Rescue of the Year Award (up to £20m turnover category) at the Insolvency & Rescue Awards ceremony held in London in October 2012.

Since 2013 a new management team has been put in place and during 2014 monthly sales to UK supermarkets have increased by over 50%. This has been achieved by extending its strong position in Scotland into the English market.

In May 2014 Mathiesons won first prize at the Scottish Food and Drink Excellence awards for the Bakery and Cereal category. This award was given based on the launch of 4 new national lines for a leading UK retailer.

NS Optimum, based in Leamington Spa, is one of the leading independent providers of information and communications technology infrastructure solutions to the UK education sector. With a turnover of £5.8 million, the business has a high quality repeat customer base consisting of some of the UK’s leading private and state schools. NSO occupies a strong niche as one of the few providers of ICT services to the UK education sector to offer a total service solution, from advising on requirements to supplying and installing infrastructure solutions and providing ongoing maintenance services to customers.

In January 2011, Pemberton Capital acquired a substantial majority shareholding from the founder of the business at an attractive valuation. While not financially distressed, the business was unfocussed and underperforming and since acquisition, Pemberton Capital has overseen a number of important management and operational changes, including the appointment of a new operations director and new finance director.

Since acquisition by Pemberton Capital, organic sales growth has been strong and the business has been enhanced by the acquisition of two smaller rivals via insolvency buy outs. The business is well placed to grow in the medium to long term, given NSO’s strong and growing customer base, which will be further enhanced by the UK Government’s aim of increasing the operational independence of English schools.

Aluminium Shapes Limited (ASL), based in Corby, Northamptonshire, is a leading independent aluminum extruder and fabricator, supplying bespoke products to a wide range of industry sectors.

Windmill Extrustions Limited (WEL), based in Ashbourne, Derbyshire is a leading manufacturer of retail point of sale, datastrip and other point of sale products to supermarkets in the UK and across Europe.

Together, the businesses have a turnover of over £14 million and employ over 100 people.

In November 2010, Pemberton Capital injected new funding into ASL’s and WEL’s holding company, Domes of Silence Holdings Limited, in return for a substantial majority shareholding. The holding company was on the verge of entering into administration immediately prior to the transaction and the new funds invested were used to pay major creditors and provide essential working capital.

Over the past months, Pemberton has taken steps to improve management (including the appointment of a new finance director) and subjected the businesses to intensive oversight designed to stabilise and improve financial and operational performance, with the result that both ASL and WEL are returning to growth and a cash positive position.