Specialist People Services (SPS), the diversified recruitment group backed by private equity investor LDC, has completed an £18.5m refinancing of its debt with Yorkshire Bank.
The agreement includes the refinancing of its existing £10m debt facility alongside an additional £8.5m senior debt and working capital package, which will help fund investment in the business.
Bradford-based SPS owns a range of leading recruitment services brands including Driver Hire Nationwide, the specialist transport and logistics recruiter; rail support services provider ISS Labour; Driver Certificate of Professional Competence training provider Driver Hire Training; eServices, which offers online people management services; and international arm Driver Hire Australia.
The refinancing has been completed as SPS confirmed bumper financial results for 2014/15. In the year to the end of March 2015, turnover rose 32% to reach £116m (2014: £88m), with significant growth achieved across the group.
SPS expects another set of strong results in the 2015/16 financial year, underpinned by organic growth. Meanwhile, the business is also targeting acquisitions as it continues to build scale.
The new financing package from Yorkshire Bank will be used for working capital and will fund capital investment in railway fencing and lighting for ISS Labour, which provides highly-skilled rail engineers for infrastructure projects across the UK.
Chris Chidley, CEO of SPS, said: “On the back of the most successful year in the company’s history, this new backing from Yorkshire Bank is a ringing endorsement of our strategy of providing recruitment solutions for some of the hardest-to-serve sectors in the UK and Australia.
“We are confident that 2015/16 will be another record year as we invest in the business. Alongside LDC’s continued support, Yorkshire Bank’s funding provides a great platform for long-term growth.”
Chidley added that SPS, which has been backed by LDC since 2011, continues to consider acquisition opportunities. These may be in sectors already served by SPS, complementary industries or new overseas markets, he said.
Steve Harrison, director at LDC, said: “Over the past four years, SPS has matured into a truly diversified recruitment services group. As a result of being exposed to a range of different markets, it is well insulated against the UK economic cycle.
“Yorkshire Bank has a long-standing relationship with the business and we’re pleased that it has again provided the management team with the banking facilities to underpin SPS’s growth strategy.”
Dan Rosinke, regional head of specialist and acquisition finance at Yorkshire Bank, said: “We are pleased to have been able to support SPS’s recent diversification strategy and growth, and to provide increased banking facilities to help fund future investment. We look forward to working with management and LDC as they continue their strategy to invest in the expansion of the business.”
Gillian Teale and Kevin Hambling were also part of the Yorkshire Bank team.
SPS was advised on the transaction by Richard Siddall of PwC in Leeds (debt advisory) and by Squire Patton Boggs (legal). Walker Morris provided legal advice to Yorkshire Bank.
The Specialist People Services Group aims to bring together businesses that share a common commitment to delivering outstanding customer service and compliance standards, and that are recognised as market-leading specialists in their respective sectors. We help our customers to maximise the productivity of their workforce, by providing recruitment services, classroom-based and online training, and other people management services. These are currently delivered primarily in the road and rail transportation sectors.
