LDC funding deal triggers board reshuffle at Edinburgh-headquartered Commsworld
Edinburgh-headquartered Commsworld has secured financial backing from LDC, the investment arm of Lloyds Banking Group, as it targets another year of double-digit revenue growth.
The telecommunications and internet services provider is aiming to expand its presence across the UK on the back of the funding deal, which has also triggered a boardroom reshuffle.
Under the agreement two of LDC’s staff, head of its Scottish arm Mark Kerr and investment director Colin Bennett, will join the board of Commsworld.
The pair will join the telecomms group chief executive Ricky Nicol, chief finance officer Graeme St John and non-executive director Steve Langmead.
Telecoms expert John Trower is also joining as chairman. Trower has significant experience of working for and advising private equity backed telecoms businesses and has held board roles at Metronet UK and Glasgow-based My1Login.
The remaining non-executive directors and private shareholders will exit the business following the transaction.
Full financial details of the deal have not been disclosed.
Nicol said: “There is an insatiable demand for robust, flexible reliable and scalable telecommunications networks as businesses keep up with rocketing data usage. We have created a network that more than meets those challenges and has already had an incredible impact on connection quality.
“We had the choice of a number of options for investment, but we have built a strong relationship with LDC who share our vision for the business.
“LDC’s investment is a real signal of our intent to further invest in our offering and capacity so we can continue to disrupt the market. Rest assured, we’ll be targeting another year of double-digit growth.”
Commsworld, which has 110 staff based across its four UK offices, underpinned its growth ambitions by launching a base in London this summer.
The group enjoyed a record year in 2018, posting revenues of £20 million, which represented a 41 per cent increase year-on-year. Key clients include Taylor Wimpey, Skyscanner and Edinburgh Airport.
Kerr added: “Ricky and the team have transformed Commsworld in recent years from a telecommunications reseller into a stand-out national network operator. Our investment will help them to build on this hard work and success and deliver further on their ambitions for Commsworld.”
LDC was advised on the transaction by a team from the Edinburgh offices of EY and Pinsent Masons. The Commsworld management team was supported by Oakley Advisory.