Multi-million pound Lombard funding puts SIS in the picture
- Lombard funding plays role in helping SIS grow business turnover by 75% in three years
- Growth supported by Lombard doubles SIS head count with 500 new staff employed
- Close relationship with Lombard delivers flexible financing meeting SIS’ business needs
Satellite Information Services Ltd (SIS) is at the forefront of live news and sports coverage, operating the largest fleet of outside broadcast and satellite uplink trucks in Europe. It is responsible for the production and distribution of thousands of hours of live pictures and real time data from sporting events around the world. Recent examples include working with the host broadcaster to provide production services at the Commonwealth Games in Delhi managed by more than 1000 SIS staff on location.
In April 2008, SIS was presented with the opportunity to acquire the BBC’s Outside Broadcast (OB) division and contract its services back to the corporation as well as developing revenue opportunities with other broadcasters. Acquiring a business in considerable need of investment, SIS wanted to secure a funding partner to help them rejuvenate the OB vehicle fleet. As a long term banking client of RBS, SIS was introduced to Lombard to assess the potential for financing new high definition (HD) OB trucks.
Jim Campbell, Chief Financial Officer, SIS, explains: “Rather than invest our capital upfront into high value, long life assets, it made sense to look at financing for the new OB trucks. In our expanding business it’s vital to retain flexibility, so on this occasion we chose to preserve our cash to help finance further growth opportunities within our Group.”
Lombard’s Relationship Director Paul Buxton met with Campbell to discuss financing options and the solution that would suit their needs quickly became evident. Lombard provided SIS with a £6.75million facility for the funding of large HD OB Trucks over a 7 year period. This would enable the business to fix costs and manage payments over a term relative to the useful economic life of the assets, whilst retaining ownership of the vehicles once the loan was fully re-paid.
Keen to progress its development strategy within OB, SIS took the opportunity to acquire two broadcast companies in late 2009 and again turned to its financing partners, RBS and Lombard, for assistance. In a deal worth £10million Lombard provided acquisition finance through an asset-based facility. This was provided against the main assets of the acquired businesses as well as additional collateral support from some of SIS’ existing high definition assets.
Lombard’s support over the last three years has allowed SIS to grow whilst managing its operating costs and increasing its production capabilities. Jim Campbell believes this has been possible as a result of the relationship that Lombard have developed with his company: “In troubled times, SIS has secured a funding facility from Lombard worth £16.75million. This is very rare and I believe down to the fact that both have taken the time to understand our business and have trusted us personally as a management team. We look forward to continuing our relationship.”
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