The UTS Group has expansion in the pipeline following FW Capital’s £700,000 investment
A leading Jarrow-based pipeline repair company is set for
significant growth with the help of a £700,000 investment by FW
Capital, the company which manages the North East Growth Plus
The UTS Group (UTS) will now build on some recent major contract
wins with UK water companies and further expansion is also planned
in the gas transportation sector.
UTS repairs pipelines without interrupting supply, improving
customer service and saving costs for heavily-regulated utilities
companies which can be subject to stringent penalties. The company
also manufactures bespoke pipes to suit particular repairs.
Speaking about UTS’s growth opportunities, Managing Director and
founder, Shaun Sadler said: “The utilities companies we work for
have strict conservation targets, so there’s a great deal of focus
on investment in infrastructure at the moment. These companies are
also investing record amounts to meet their targets.
“Every repair we do is different, so we provide a tailored
service. We can also undertake repairs without all the
inconvenience and cost associated with cutting supply. This is
particularly important at the moment with more than 20 million
people in the UK currently affected by drought conditions,”
In business for over twenty years, UTS is market leader. It has
a solid reputation for providing a high quality end-to-end service
and rapid response times. With three of the UK’s twenty-one water
companies on its client list - Thames Water, Veolia and Welsh Water
- UTS is already eyeing up the others.
“We operate globally and our services are well-suited to a range
of industries because we have a reputation for innovation. While
we’re intending to expand in the water industry, our next big
growth opportunity is in the gas transportation industry. FW
Capital’s investment will help us keep our market leading
position,” continued Sadler
Joanne Pratt, FW Capital’s senior investment executive in the
North East led the UTS deal.
“UTS is an established business with all the right ingredients
to make the most of our investment. It is ambitious for growth,
forward-thinking and innovative. It already has an impressive
client list and a strong brand to build on. Investment in
infrastructure is big business at the moment and there are plenty
of new global opportunities to go after,” Pratt explained.
“It’s great to see UTS’s management team thinking long-term not
only about the company’s future, but also how to finance their
plans. I’ve been pleased to work with them to make sure our
investment complements what’s already in place and gives them what
they need to focus on building the business,” continued Pratt.
FW Capital’s investment comes on top of previous finance
provided by UTS’s bankers, HSBC.
David Sinden, Senior International Commercial Manager at HSBC
commented on the bank’s relationship with UTS: “A company such as
UTS is an example of the commitment of HSBC in supporting local
SMEs achieves their growth ambitions, both domestically and
internationally. HSBC are delighted to have provided appropriately
structured funding in conjunction with FW Capital and look forward
to connecting UTS with further opportunities to assist Shaun and
his team in fulfilling their ambitions for the company.”
Pratt was pleased to have worked with Sinden on the investment,
commenting on the quality of the relationship between FW Capital
and the bank: “We’re keen to work alongside more banks and their
clients on deals like this one for UTS. It’s important to look at
the total funding package a business needs if it’s to stand the
best chance of success. That’s where FW Capital can help - the
North East Growth Plus Fund’s investment criteria gives us a lot of
flexibility to do this.”
Thames Water recently reported reducing water leakage by a third
since 2004, its lowest level ever, after replacing 1,400 miles of
Haines Watts and Sintons advised UTS on the deal. Ward Hadaway
and Tait Walker advised FW Capital.