Case Study: Advanced Composites
Advanced Composites manufactures carbon-fibre components. At the time of investment, the company was loss-making and short of capital, but with revenues of £15 million sufficient to support profitable trading and a strong market position. Foresight was introduced to the company by an existing Foresight investor, and subsequently bought out one of the shareholders, leading a £4 million syndicated growth and buyout investment. The management team was capable and focused but needed to operate independently of the founder. The business also needed development capital to support investment and additional marketing and sales resource. A Foresight partner acted as a non-executive director of the company, guiding the company through management transition and rapid growth. Over a five year period, revenues more than doubled with a turnaround to profits of over £3.5 million. Foresight encouraged management to seek a flotation of the company in order to raise its profile with mainly US-based competitors. The flotation process caused two businesses to bid for the company and an exit was completed at a price of £44 million. Foresight secured a cash return of 6.2 times investment cost.
