Independent IT finance provider Syscap is
yet again in the spotlight with speculation that it has received a
capital injection from its private equity backer, AnaCap.
CEO Philip White, however, rejected reports
that Syscap had received what was referred to as a sudden £5
million (€5.5 million) “boost”.
Go deeper with GlobalData
He said: “This is money that has been put down
into the business over the past two years, a proportion of which
has been used to pay down leveraged debt and a proportion to
leverage further funding, consistent with the long-term strategy
and covenants agreed with our bankers.”
Strategic changes
White added that over the last three years
Syscap has evolved from being mainly a broker, to writing 50
percent of the business on its own books today.
“If we hadn’t changed strategy, we would have
been culled – it was important to reduce
our dependence,” he said.
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By GlobalData“But in order to be able to do that, you need
to put equity into these deals, so part of the investment is to
raise further funding.”
Indeed, White confirmed that Syscap is in the
later stages of securing a 50 percent increase of available funding
through its bankers, RBS.
It has also recently renewed and expanded its
funding facilities with BNP Paribas Lease Group and Lombard.
“If we put this into the context of many
funders actually withdrawing from the broker market place, this is
really testament to Syscap’s strength,” White said.
Annual report
In its annual report, Syscap Limited reported
that it had arranged finance totalling £162.6 million, up nearly 20
percent on 2007’s £135.7 million.
Of this, 60 percent was for commercial
customers, 27 percent was professions and the rest was for the
public sector.
EBITDA was also up by £600,000 more than in
2007, reaching £2.7 million, while margin was £7.2 million, a
£100,000 increase on the previous year.
Pre-tax profit was therefore £1.4 million at
Syscap Ltd, a vast improvement on the £26,187 loss the company made
in 2007.
“Business is robust thanks to the action we
took last year, and it has put us back on the growth trajectory,”
White added.
