Comtek Network Growth Capital

Will Alternative Lenders be more expensive

Company Overview

Comtek Network Systems UK (“Comtek”) is the UK’s fastest growing multi-vendor IT and telecoms repair service, and is committed to extending the working life of legacy IT and telecoms equipment.

The company advocates strongly for the circular economy and carbon reduction, offering a wide range of refurbished hardware options and services.

Deal Overview

Comtek has grown at a CAGR of around 15% since the pandemic, with global supply chain issues meaning demand for refurbishment and repair of IT and telephony equipment has never been higher.

In order to service this demand Comtek has been increasing the number of engineers it employs and building broader capability in the offering.

To accelerate this growth even further the Directors were looking to raise some additional funds, allowing them to bring engineers on more quickly and invest further in R&D.

Recognising that the funding was critical to future success, Comtek engaged Fresh Thinking to review the current funding structure, propose more appropriate solutions and deliver a better long term partnership.

Funding Solution

The incumbent high street lender was unable to support the business further, but with a solid asset base and a number of well respected global customers there were a number of solutions available to them.

Fresh Thinking reviewed the current funding structure, and helped the Directors plan for not just the current growth opportunity but also the longer term financial health of the business.

Having invested the time to meet the management team and tour the premises, it was clear early in the process that Whiteoak UK had a good understanding of the deal and were keen to support the investment in the local community that the growth would create.

As Chair of the Deeside business forum and UK Fibre Connectivity Forum, owner Askar Sheibani saw real value in the local presence of the Whiteoak team and the longer term support they could offer as the sector, and business, prosper in the coming years.

The existing funding structure was refinanced with additional capital provided by Whiteoak, ensuring the finances can run as smoothly as possible and minimising the number of lender relationships.

Amount Raised: £1,660,000

Company Name: Comtek Network Systems Ltd

Lender: Whiteoak UK

Funding Purpose: Growth Capital

Askar and the team at Comtek are doing some amazing things in the electrical engineering space, helping promote and deliver the circular economy and maximising the useful life of business critical assets for many large multinational organisations.

Given the unique nature of the business and the requirements as it grows, a specialist lender was required and once again it was demonstrated that regional SME’s are well served in the alternative debt space across the North.

The support of Whiteoak really stood out through the process and gives Comtek the financial support it needs to grow and generate a real step change in the business

Oliver Reece, MD of Fresh Thinking Advisory commented

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