Member News | 25.01.2016
By Heather Martin
Computer Application Services Ltd is poised for further growth after receiving funding support from investment firm Capital for Colleagues.
Capital for Colleagues (C4C) will inject a mix of equity and a loan facility to a total of £250,000 into Computer Application Services (CAS), in return for a 15% stake in the company’s fortunes.
C4C, specialists in funding employee-owned businesses, praised CAS’s mix of a steady track record and desire for growth as it awarded the funding.
CEO at CAS, Ken Naismith, says: “This funding opens the door to exciting new opportunities for CAS. Self-funded investment of £500k has been released into the business over the past two years to extend and modernise our key product, Workpro. Now this new funding will fuel further growth.”
He commended C4C’s approach, adding, “Whereas banks want to see ‘bricks and mortar’, and traditional private equity backers tend to see a 3 or 5 year exit as the desired outcome, C4C has a ‘patient money’ approach. Employee Owned businesses are often more about long term stability and steady returns for the medium term with the door open to share upside as success builds.
“C4C recognise that, with CAS already attracting new business from respected names like Savills and Skipton Financial Services, our plan is working.”
CAS plans sales to rise to £4m by 2020. Alongside organic growth, C4C and CAS share an appetite for potential acquisition.
Alistair Currie, Executive Director at Capital for Colleagues adds, “CAS has a steady long term track record with ambitions for significant growth in the future. This transaction supports our investment strategy and provides further diversification of our expanding portfolio.”
CAS became an employee owned company in January 2014.
Ken adds: "Each team member at CAS has a stake in the company's future so there is every incentive to make the most of the opportunities this investment affords."
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