Electronic engineering business operating in the rail sector, with turnover of c. £19m. Engaged to review the medium term forecasts, monitor the cash flow position and introduce potential purchasers for the Company’s shares.

Duff & Phelps and Hilton-Baird Financial Solutions Assisted an Electrical Engineering Firm to Secure Equity and a Working Capital Investment

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 c. £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.

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