SIGN UP

London-based communications agency eyes accelerated UK and international growth with BGF funding

London, 4 August 2015 – The UK’s sixth largest independent communications agency is preparing for significant expansion thanks to a £10m investment of equity finance from BGF (Business Growth Fund).

BGF has taken a minority stake in London-headquartered Four Communications (Four) which also has offices in Edinburgh, Abu Dhabi and Dubai and employs over 200 staff across its four offices. Four’s key services include public relations, public affairs, marketing, sponsorship, digital & content and media planning & buying with a particular focus on the property, travel, culture, healthcare, financial services and public sectors.

As part of the investment, the business has also secured an additional debt facility from HSBC.

Four has experienced rapid growth over the past four years, doubling turnover from £15m in 2010 to over £32m in 2014, a record-breaking year for the agency, and is expected to increase this again by over 20 per cent organically in its current financial year ending December 2015.

Four has won numerous industry awards including UK Agency of the Year, Middle East Agency of the Year, Best New Agency, the UK’s Best External Campaign and a top 50 UK Businesses to Watch Recognition, and is now the number six independent communications agency in the UK according to PR Week.

BGF’s £10m growth capital investment will support the company in making a number of acquisitions in the UK, Middle East and South East Asia.  Over the past four years, Four has built a strong track record of acquiring and integrating communications agencies which offer complementary services to the group including bgb in 2011, Colman Getty in 2012, Kinross & Render in 2013, Consolidated PR in 2014 and most recently MSA Media in May 2015.

Founded in 2001, Four has over 600 clients across a number of sectors including Etihad Airways, The Man Booker Prizes, Sotheby’s International Realty, Intercontinental Hotels Group and Kinleigh Folkard and Hayward. Notable campaigns run by Four include UK Government PR Campaigns for the Foreign and Commonwealth Office and Cyber Streetwise, integrated & digital campaigns for The Wales Millennium Centre and Agatha Christie and marketing & media campaigns for St George.

To date, BGF has invested over £31m in the UK’s media and marketing sector backing companies including London-based Unruly Media, Broadbandchoices.co.uk, Abacus e-Media, The Exchange Lab, Zone and Leamington Spa-based Palmer Hargreaves.

Nan Williams, chief executive of Four Communications said:

“This is a very exciting time for our business. In the past few years we have seen significant organic and acquisitive growth. With BGF’s backing, we can take this to the next level in the UK and overseas.”

As part of the deal, BGF Investor Chris Hodges will join the Board of Four Communications. He said:

“Nan and her senior management team have a fantastic track record of delivering innovative communications services that are valued by Four’s diverse range of customers.  Their ambition has driven organic growth in the business which has been enhanced by a series of strategic acquisitions that have expanded the range of services Four offers, grown its presence in dynamic market sectors such as travel, property and healthcare, and successfully established its international footprint.  BGF is looking forward to supporting the team in delivering engaging creative work for Four’s clients and taking the business smoothly to the next level of scale.”

The investment was managed for BGF by Chris Hodges, George Tsangarides and Thomas McDonnell.

“The share price has once again been heading in the right direction since November. They now trade on a forward P/E of around 15 and a prospective 2.5% dividend yield. This may tempt longer term investors who are bullish on construction and the housing market and are prepared to back management’s ambitious strategic plan.”

£367k investment set to create 20 new jobs at IT and telecoms firm

A fast-growing cloud and IT business is set to create 20 new jobs after securing a £367,000 investment from Lancashire County Council's Rosebud Finance.

Denwa, which currently employs over 30 people in Barrowford, expects to double its turnover in the year ahead. The award-winning company provides telecoms, broadband and cloud-based IT solutions to businesses nationwide, with recent client wins including ALDI and Simon Jersey.

The company, which is named after the Japanese word for telephone, was established in 2006 by its CEO Rob Scott, who had previously worked in the telecoms industry in Japan. Denwa has received two previous rounds of Rosebud funding.

Peter Rooney of Enterprise Ventures, which manages Rosebud, said: “Denwa is a high-growth business driven by a young and dynamic entrepreneur. However businesses like this need access to finance to support their expansion and are often unable to get the funds they need from conventional sources. This case shows how Rosebud is playing an important role in supporting business growth and job creation.”

Denwa has established its own training academy to develop the skills and knowledge of its local recruits, and as part of its recruitment drive it is looking to enrol more young people on its Sales Fast Track programme to produce top class Sales Executives. The first phase of recruitment is already underway with the creation of 10 new positions across its sales and service departments.

Rob Scott, Denwa CEO, said: “We are delighted to be awarded another round of Rosebud funding. It will help enormously with our expansion plans to grow the team and develop the business, and it’s a great compliment that we have funders wanting to invest in the future of Denwa.”

Rosebud is a finance package supporting Lancashire firms to grow and expand their business. It is managed by Enterprise Ventures on behalf of Lancashire County Developments Ltd (LCDL) - the county council's economic development company.

County Councilor Niki Penney, chair of LCDL, said: "This is a significant investment by Rosebud that will directly create new jobs, which is great news.

"We're delighted that Rosebud's support has already helped the team at Denwa to develop their business.  They're now looking to grow their business further and we’re pleased that Rosebud has once again been able to help them.

"As well as finance, Rosebud also helps you to find the right advice and support that you need to develop your business."

For a flexible approach for your business finance needs, Rosebud is a complete financial package with complementary support and advice available.

For more information visit www.lancashire.gov.uk/rosebud, email [email protected] or contact 01772 536 652.

Investors pleased with healthy Travis Perkins results

·         Travis Perkins’s adjusted profits rose by 3.1%

·         The group is benefitting from the boom in the UK housing market

As Travis Perkins reports its interim results, Graham Spooner, investment research analyst at The Share Centre, explains what they mean for investors.

“Travis Perkins, the UK’s leading supplier of building materials, reported a healthy set of interim results this morning. The group, which includes Wickes, has been benefitting from the boom in the UK’s housing market, more repair and maintenance, better weather, and Government support for more housing. Adjusted profits rose by 3.1% to £167 million whilst there was a healthy 20% increase in the dividend to 14.75 pence. Year to date, the shares are up by around 20%.

“Interested investors should note that Travis Perkins is close to halfway through a strategic plan which aims to optimise space, improve customer options, leveraging scale and improve management of the business, especially with regard to cost control and margins. Those currently invested should note the CEO stated that they remain on track for full year results and expect to meet expectations.