News blog

Outsourcery

• BY: Andrew Hore |
• POSTED: 10/10/2014 |

Encore Capital is investing £1m in cloud services provider Outsourcery.

The placing price is 20p, which is the same as for the placing during the summer but above the current market price of 17p, up 0.5p on the news. Outsourcery is valued at £8.03m.

Outsourcery believes that the £1.5m placing during the summer and the cost saving measures are still enough to get the company to EBITDA positive by the end of 2015 – some people claim that this is equivalent to cash flow but there is rarely a direct relationship because of working capital movements. It argues that the additional cash will help to pursue additional growth opportunities.

Encore’s other investments include Stagecoach Theatre Arts. The former Aim company was taken private by the firm for £6.5m in 2012. 

Shirin Ghandi of Encore is a former nominated adviser during his time at Numerica.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2014_60.pdf