EliteTelecom seals £11m for acquisitions

LANCASHIRE business telecoms provider Elite Telecom, which expects to top £20m turnover for the first time this year, has agreed a major funding deal to support further growth.

The Chorley company has sealed  £11.5m from Lloyds Bank Wholesale Banking & Markets in Manchester –  £7m of which has been arranged under the government’s National Loan Guarantee Scheme (NLGS), which aims to help companies further reduce their borrowing costs by one percentage point.

Elite says the cash will enable it to continue to take part in the  consolidation of the business telecoms market and fund its organic growth.

The company posted sales of £17.2m in 2011 and expects to see turnover exceed £20m this year as a result of both organic growth and four acquisitions in the last year. This has seen staff numbers grow from 50 to 70.

Chief executive Matt Newing said: “We are targeting further rapid growth over the next 12 months and having the right banking partner in place to ensure we achieve this couldn’t be more important.”

He praised the rapid completion of the new funding package, which was led by relationship director Dave Bowen, who covers Manchester, East Cheshire and East Lancashire.

Mr Bowen said: “Elite is an outstanding company with a proven track-record of growth, profitability and excellent customer retention. It also has a strong management team in place with a growing national presence.

“We’re actively looking to support ambitious, businesses like Elite to help them achieve the scale and success they deserve. Their growth is good for jobs and the economy and we’re keen to play our role in supporting that.”

Elite was advised on the funding by Rob Burbidge, a director of Warrington-based Knight Corporate Finance.