Case studies
Morses Club
Morses Club is a leading home collected credit business, bought by RCapital in 2009 from Ernst & Young LLP, acting as administrators on behalf of a Bank who had owned the business since 2004.
With a current turnover of £33 million, Morses Club offers its customers a friendly, personal service, providing small loans and short term credit to those unable to access more traditional forms of finance.
“RCapital invested in Morses Club because it showed great potential for recovery and future growth…the company lost focus after being purchased by the bank and was held within a large, insolvent corporate entity”
Morses Club was successfully turned around in a 6 month period and the business has remained profitable ever since. Following the initial investment, which was repaid within 2 years, the business now generates significant profit and has one of the lowest bad debt levels in the industry.
The business was runner-up in the prestigious Turnaround of the Year awards in 2010.
Plowman Craven
Plowman Craven is one of the world's most innovative geomatics companies specialising in accurate measurement of buildings and transport infrastructure. More recently, the company applied its measurement skills in Hollywood, on films such as Batman - The Dark Night and for a gaming company that wanted to measure the grand prix circuit for a computer game.
Founded in 1964, Plowman Craven is a fascinating business able to deliver a consistently high standard of quality and service to clients, regardless of the size and complexity of each project. As a consultancy firm, this can only be achieved through the continuous adoption of new technology and astute investment in both staff and equipment – a strategy RCapital has followed since this acquisition was completed in 2009.
RCapital’s investment in Plowman Craven was based on its strong client base in the public sector, which has proven to be a sustainable business model with, to a large extent, indispensable services that have been sheltered from the economic downturn.
“This was a sound but poorly managed company, suffering the effects of a very highly leveraged buyout and lack of focus within the senior management team”
Initially RCapital purchased the senior debt from HBOS who had become uncomfortable with the exposure. This allowed Plowman Craven two months breathing space and enabled a successful restructure, which reduced costs significantly.