A Fife subsea equipment manufacturer is set to accelerate its growth plans after securing a new £4.5 million funding package from RBS.
The major refinancing for HCS Control Systems in Glenrothes was completed just over a year after the company changed hands following a buy-in management buy-out deal.
The move was supported by £9 million of equity funding provided by Maven Capital Partners, Simmons Parallel Energy and Front Row Energy Partners and saw Brett Lestrange (pictured below) installed as chief executive officer.
The firm specialises in the design, in-house manufacture, assembly and testing of equipment for the subsea industry worldwide, and its headquarters manufacturing facility at Viewfield Industrial Estate extends to more than 60,000ft2.
In the year to December 31 the company generated revenues of £10.96m up from £7.7m in 2012 and booked a pre-tax profit of £489,265, an increase from £407,068 the previous year.
Accounts lodged at Companies House show HCS carried an average of 64 employees last year, but that figure has grown by more than a quarter to more than 80 in the first half of 2014 as the new management team began to roll out their growth plans.
Mr Lestrange yesterday said the new funding package would be used to support the firm as it looked to build on relationships with existing customers which include blue-chip names such as BP, Total, Aker and Schlumberger and win new clients.
“This refinancing package will play an important part in driving forward our growth ambitions,” Mr Lestrange said.
“The oil and natural gas market is at its strongest level for more than three decades with a substantial rise in global consumption.
“Our systems include direct hydraulic production systems, installation and workover systems, subsea distribution units, and the complete range of topsides equipment for deployment and handling of umbilical systems.
“As a specialist provider to the subsea industry, our competitive strengths are superior quality, assured on-time deliveries, and being able to offer the full system package, including SIT activities and field services.”
RBS said the refinancing package for HCS was the 10th that its north-east based Structured Finance team had agreed in the past 10 months.
The bank added that it showed its commitment to supporting firms operating in the energy sector.
“We have a long and successful track record of supporting private equity-backed oil and gas service companies,” RBS team director Lee Donaldson said.
“This deal with HCS is a further example of our strong commitment to growth businesses operating within this sector.”
HCS was founded in 1997 and its products have been shipped to major oil and gas plays worldwide.
In addition to its manufacturing base in Fife it also has an office in Aberdeen from where it services its North Sea clients.