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Case Study: Electrastar

Published: December 2010

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Ian Atkinson, investment manager with Rob Dixon, managing director of Electrastar Ltd.

The Company

Electrastar Ltd is a fibre optic specialist and data cabling installer based in Hull, East Yorkshire.

The company installs cables to connect technology for anything from internet, to CCTV, to large screens.

Electrastar was set up in 2004 by the three directors, Rob Dixon, Lee Harrison and Brendon Jackson.

The Challenge

With the company previously receiving high profile contracts from London 2012 and Manchester United’s Old Trafford stadium, Electrastar Ltd needed more cash flow to purchase new equipment and move with technology.

As this is such a niche market, kit is rare and comes from all over the world. It can cost between £1,000 to £20,000 and funding was needed to service current equipment and buy more so the company can carry on developing.

The Solution

Electrastar Ltd received a £25,000 business loan from Finance Yorkshire.

The money will help Electrastar maintain its position in the industry and will keep standards high. The business is currently installing security measures and CCTV into the new £80m tube system running between London’s Olympic village and the main tube system.

Equipment will need servicing after this large contract has been completed.

Finance Yorkshire were impressed by the strong management team at Electrastar, the company demonstrated a strong track record with the ability to grow.

Faced with increasing demand for their services, particularly in the specialist area of copper wire termination, Electrastar had been frustrated in their attempts to raise additional finance for their growth plans.

Finance Yorkshire were keen to help make this growth plan happen.

Future Expectations

Electrastar will use the money to buy new and maintain current equipment which also helps the business carry out fibre optic termination and testing services for various media in a wide range of environments such as CCTV, motorway communications, large display screens and computer networks.

More and more places need faster broadband, wireless networks and other communications networks. As systems are upgraded to embrace next generation technologies the demand for Electrastar’s services will only grow.

Technology is always moving forwards so the worst thing to do in their sector is stay stagnant. Electrastar may diversify in the future to stay up to date and now they have the capabilities to do so.

The Investment Rationale

Finance Yorkshire were impressed by the strong management team at Electrastar, the company demonstrated a strong track record with the ability to grow.

Faced with increasing demand for their services, particularly in the specialist area of copper wire termination, Electrastar had been frustrated in their attempts to raise additional finance for their growth plans.

Finance Yorkshire were keen to help make this growth plan happen.

Future Expectations

Electrastar will use the money to buy new and maintain current equipment which also helps the business carry out fibre optic termination and testing services for various media in a wide range of environments such as CCTV, motorway communications, large display screens and computer networks.

More and more places need faster broadband, wireless networks and other communications networks. As systems are upgraded to embrace next generation technologies the demand for Electrastar’s services will only grow.

Technology is always moving forwards so the worst thing to do in their sector is stay stagnant. Electrastar may diversify in the future to stay up to date and now they have the capabilities to do so.

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Editors Notes…

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