Specialist financier ExWorks Capital has signed a deal to provide £7.5 million (US$9.79 million) in pure working capital to events logistics specialist, ES Global Ltd.
A staging structure, event overlay and project management provider for music, sporting, corporate and hospitality events, ES Global was formed in 2012 via an MBO, following its management team’s success with the London 2012 Olympic Games. The team has also successfully run Olympic events in Sydney, Athens, Rio and Sochi – reusing 70% of its patented Truss equipment, in line with its strong sustainability principles.
ExWorks offered the client a bespoke, flexible, funding solution in the form of a revolving credit line, to provide working capital for the company’s various contracts to deliver semi-permanent venues for the 2020 Olympic Games, to be held in Tokyo. With a one-year tenor, ExWorks’ senior loan is secured by the company’s underlying assets and contractual income. The funding will be utilised at various stages of project development to bridge gaps between ES Global’s contractual delivery and payment by the client.
Chris Ash, Managing Director at ExWorks Capital, says: “ES Global approached us to provide working capital to assist with the delivery of its contracts for the 2020 Olympics. While it has other deals in place to finance the £68 million project, we were able to step in to bridge the gaps between ES Global’s project delivery and payment by its client. This provides the company with the vital working capital it needs to proceed with each subsequent project. Such financing allows ES Global to fulfil and compete for new contracts without straining the company’s finances.”
Olly Watts, Director at ES Global, adds: “The financing ensures that the delivery of our upcoming projects will be seamless – meaning that we are able to proceed with subsequent projects without a significant wait for payment from the client.”