Portfolio group targets £100m EBITDA following record profits

Simon Orange

CorpAcq, the Altrincham-based buy, build and hold group with more than 30 businesses in its portfolio, has reported record profits for 2021.

Its latest financial results show EBITDA for the group was up 41.5% from £64.4m in 2020 to £91.1m in 2021. This was based on annual turnover of £561m – up 17.4% on 2020.

Operating profit soared by 75.7% from £35.8m in 2019 to £53.3m.

The group, which is behind clothing company Cotton Traders, is now on track to achieve EBITDA of £100m by the end of 2022.

CorpAcq invests in successful, well managed, profitable businesses and allows them to run autonomously without interference, while supporting them with financial and strategic expertise.

It enables companies to operate as normal and trusts its management teams to run their businesses without pressure for immediate growth or fear of a quick exit.

Despite ongoing economic factors, CorpAcq’s portfolio has seen an excellent start to 2022 achieving organic growth in excess of 10%.

CorpAcq continues to be on an acquisition trail and is looking to double in size in the coming years, targeting successful, profitable, well-managed businesses.

The group’s business model has demonstrated significant value creation for all stakeholders over the past 15 years with its ability to support long term business sustainability, significant cash generation and a robustness to cope with all aspects of the economic cycle.

It has a number of successful proponents in Continental Europe and the US, but CorpAcq is the only established player of scale in the UK.

In March this year, CorpAcq partnered with funds managed by Goldman Sachs Asset Management and Nova Capital, who have made a significant investment in the group. Both will bring their specialist experience and financial backing to further enhance CorpAcq’s platform.

Simon Orange, CorpAcq’s chairman and founder, said: “Our businesses do better than the industry averages in bad times as well as in boom periods and the numbers back that up.

“We recognise the upcoming challenges in the market with high inflation, supply chain disruption and an economic downturn, but are confident that our conservative approach, diversified and robust portfolio, and experienced management teams put us in a strong position to manage these uncertainties.”

He added: “Our continued profitable growth demonstrates the benefit of longer term investments and provides a counterpart to the more prevalent buy and sell strategies of the private equity industry. We are excited to have Nova Capital and Goldman Sachs Asset Management on board to support the next phase of the group’s growth.”