PPE designer and manufacturer, Core Protection Systems Limited (Corpro), has completed a seven figure Management Buy Out (MBO) with an innovative finance package, including a Coronavirus Business Interruption Loan (CBILS), arranged by PMD Business Finance in partnership with Zone Commercial Finance.

Corpro produce advanced and innovative respiratory mask and filter systems which have been designed with the user at their core. Over the past three years, Corpro has evolved from an initial concept through to a successful production business and will now be under the full ownership and management of Phil Scott, June Scott and their dedicated team. Phil Scott, Corpro Director, said:

‘The current COVID-19 crisis has shown us how much demand exists for high quality respiratory protection products and we look forward to expanding our distribution network still further.’

Completing the Management Buy Out

PMD was introduced to Phil Scott by Neil Emmott, Managing Director of Zone Commercial Finance, as part of their strategic partnership utilising Neil’s extensive experience of the secured lending sector and PMD’s asset-based lending capability. Callum Bull, Business Development Director at PMD, said:

‘This has been a hugely fulfilling and enjoyable transaction to work on alongside Neil. I am delighted we have been able to form an innovative CBILS funding package within short timescales for Corpro, particularly given the criticality of their products to the safeguarding of healthcare professionals among other key sectors.

‘Phil and his team have an exciting growth strategy. We look forward to working closely alongside both Corpro and The Filter Design Company in the future and we wish them every success.’

Phil Scott commented:

‘Both PMD and Zone Commercial Finance were contacted at the latter end of the business acquisition to provide a financial solution for the purchase. Both companies sought out cost-effective finance in a timely manner, and their proactiveness ensured the business deal was taken care of to the required schedule. Without their hard work, I am not sure the acquisition would have been successful.

‘As a result of the transaction, we at Core Protection Systems can now effectively strategize the business moving forward. Our main objectives are to increase our international sales by targeting key regional distributors globally, and to develop our product range further to become a key, high quality and comprehensive supplier of respiratory protective equipment both in the UK and beyond.’

CBILS is a government backed scheme that can provide facilities of up to £5m for smaller businesses across the UK. CBILS supports a wide range of finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

The transaction was completed by PMD’s Structured Finance Solutions division, which specialises in supporting both clients and advisors to source market leading funding for a variety of transactional or event driven situations. Whilst its official launch was delayed due to the coronavirus pandemic, the team is already fully functioning and ready to support clients and advisors during these times.

Since its inception in June 1995, AIM has admitted over 3,800 companies from across the globe, raising a combined £118 billion in equity capital. Supporting companies throughout changing business and economic cycles, AIM has become one of the world’s most successful growth market.

Research published by Grant Thornton UK LLP this week, shows the significant value of AIM companies to the UK economy, and the support that AIM has provided to business growth over the past 25 years. The report has found that, in 2019 alone, AIM companies contributed £33.5 billion Gross Value Added (GVA) to UK GDP and directly supported more than 430,000 jobs. When economic activity through AIM companies’ supply chains and expenditure of employees in their local economies is taken into account, the overall economic impact of AIM companies is even larger – equivalent to £67.2bn in GVA and over 900,000 jobs. UK companies admitted to AIM have also continued to expand internationally. Over the last 10 years, these companies have grown their overseas sales from £7 billion in 2010 to £12.4 billion in 2019.

Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG:
“AIM was launched 25 years ago to provide a platform for growth companies to raise long-term patient equity capital. Since then it has become one of the most successful growth markets in the world, helping over 3,800 companies raise a combined £118 billion. This continued access to capital is particularly important today helping to support business in the recovery from the impact of the COVID-19 pandemic as firms look not only to strengthen their balance sheets but to fund innovation and growth.

“Ensuring that dynamic growth companies can realise their potential is vital to the UK’s current and future prosperity. Providing access to capital at all stages in a company’s development is a key contributor to success and we have a long-term commitment to supporting these entrepreneurial firms into the future. By enabling retail and institutional investors to access growth, AIM plays a vital part in the nation’s wealth creation helping to fund the creation of jobs, drive productivity and foster innovation and exports.”

Marcus Stuttard, Head of AIM and UK Primary Markets, London Stock Exchange plc:
“Since its launch, AIM has not only adapted and evolved to meet the needs of growth companies and investor appetite globally, it has also remained resilient through economic cycles. AIM’s ecosystem of entrepreneurial companies, alongside the long-term investors, nominated advisers, brokers and intermediaries that support them, have been key to its success. We remain committed to ensuring that high-growth companies across all stages of their development are able to access the capital they need for the next stages of their journey.”

John Glen MP, Economic Secretary to the Treasury:
“I’m delighted to celebrate AIM’s milestone anniversary with London Stock Exchange. The UK’s innovative and dynamic SMEs are the backbone of our economy. The fact that almost 60% of UK businesses on AIM are based outside London demonstrates its role in regional economic development and employment. The UK Government has backed AIM in a number of ways, whether through tax incentives or allowing AIM shares to qualify for ISAs, and we remain dedicated to supporting the UK’s high growth companies to achieve their potential.”

Philip Secrett, Head of Public Company Advisory, Grant Thornton UK LLP:
“Over the past quarter of a century AIM has established itself as a core part of the funding ecosystem in the UK. As our new report highlights, AIM’s robustness helps to create more resilient and sustainable businesses. AIM’s long-term economic role has been highlighted during the COVID-19 pandemic, and the market will have a critical role to play in supporting economic recovery and future growth across the UK economy.”