ResQ Close - £2.6m raise
We are delighted to announce that Ruffena have recently closed an investment round of c£2.6m for ResQ, a sales outsource centre based in Hull, by way of a 10% three year Convertible Loan Note. Ruffena advised on the deal, raised part of the money from its investors and acted as concierge to the completion of the deal.
Res-Q make outbound sales calls, and handle inbound sales enquiries on behalf of its clients. This focus on sales has enabled the company to establish systems which maximise the revenues to their clients, who have outsourced one of their most important activities. The accumulated experience of the selling process means that the company’s clients look upon Res-Q more as a partner and advisor rather than a contractor, and this is reinforced by the company’s charging structure where the fixed fee is reduced and the company take a share of the success revenue. This approach is unique in the sector, aligning the company to its client’s interests as well as being beneficial to the bottom line if successfully managed.
ResQ found themselves in a poor cash position when their largest client terminated their contract through no fault of ResQ or themselves. As a result, ResQ had no choice but to file for a CVA. The company now has a range of Blue Chip customers, but some new contracts have not been won because the potential clients have not wished to partner with a company tied to a CVA. The primary use of the money raised was to satisfy the creditors which has now happened. A further use was to open new premises in Seaham in Durham, after acquiring a management team with long experience and a ready-made client base. Durham County Council have made available an employment grant of £650m to encourage this event.
The company made EBITDA of £1m in the year to December 2015 and is forecasting a figure of £4m to end 2017.
Acting for Ruffena Capital: Dwight Makins
E: firstname.lastname@example.org Mob: 07802273878