Duff & Phelps and Hilton-Baird assist electrical engineering firm in sourcing turnaround funds
Duff & Phelps and Hilton-Baird Financial Solutions are pleased to announce that they have assisted an electrical engineering firm to secure equity and a working capital investment, despite facing significant creditor pressure and HMRC arrears.
About the company
Based in the South East, the Company operates as a provider of contractual engineering services, predominantly in the rail sector working closely with London Underground and Network Rail. The Company’s turnover is currently £19m per annum.
Duff & Phelps’ and Hilton-Baird’s role
Duff & Phelps was initially asked by the Company’s lender to review its financial forecasts and funding requirements in order to ensure continued trading following a downturn in performance.
Having identified a significant funding gap, Duff & Phelps was engaged to monitor the company’s financial performance whilst restructuring options were explored.
Duff & Phelps and commercial finance broker Hilton-Baird were jointly engaged by the company to introduce potential third party investors that could inject sufficient rescue capital to save the business.
A successful outcome
Duff & Phelps and Hilton-Baird utilised their network of funders and investors to identify a number of interested parties. A controlling interest in the company was successfully sold to a private turnaround fund that, in addition to the share purchase, provided a significant working capital facility to enable the company to continue as a going concern.