Member Article

Fastflow secures investment for growth

North East based Fastflow Group has secured significant capital backing from Elysian Capital II LP, in London, to support its growth plans.

Cavu Corporate Finance (Newcastle) brokered the deal, unlocking the door to additional funds for Fastflow, which has already experienced major growth over the past five years. Lloyds Bank Commercial Banking and Yorkshire Bank provided senior debt facilities to support the transaction.

With its headquarters in Washington, the Fastflow Group provides maintenance services to the owners of critical assets in the water, gas and social housing sectors. This year, combined turnover (to March 2017) is anticipated to top £75 million.

It was founded in 2005 when Neil Armstrong bought Fastflow Pipeline Services (FPS) from Northumbrian Water and now has two further divisions. The gas transmission business, Fastflow Energy Services (FES) was, in effect, a 2012 start-up within the group, while the social housing maintenance business (DWSS) was acquired in 2014.

Whilst Neil Armstrong heads up the group, each of the divisions has a strong standalone management team and all are positioned in attractive niches of large and expanding markets.

The market drivers and customer relationships for each provide a positive backdrop for this investment. FPS works closely with its primary customer Northumbrian Water and has recently been appointed a tier one contractor with Scottish Water, which will drive growth over the next few years.

FES maintains high pressure gas transmission assets, as well as the high pressure end of distribution on critical assets for customers such as National Grid, for which there is a well-defined and significant investment and renewal plan.

DWSS operates in a very specific sector of the housing maintenance market – serving registered providers of social and affordable housing in London and South East England. Its high quality service is based on a ‘right first time’ philosophy and unrivalled responsiveness to clients. Market opportunity here is also very large - making the buy and build proposition, which Elysian is keen to support, compelling.

All divisions benefit from long term framework agreements and Fastflow has an excellent renewal track record, based around its commitment to quality service provision.

Neil Armstrong, founder and CEO of The Fastflow Group said, “This business has been very close to my heart for almost 22 years and in Elysian Capital, I have found a partner that understands what makes this company and its people special. With its support, we will continue to realise our ambitious growth targets, whilst maintaining the Fastflow Group as a great place to work for our people and a real value added partner to our customers.”

Shawn Bone Managing Director of Cavu Corporate Finance, added: “ We have enjoyed working with Neil and his team to help them set a new strategic direction for the business. It was clear from an early stage that the Elysian Capital team understood that Neil was looking for a partner who shared a common ambition for the business. We look forward to working with Fastflow on the next part of the journey.“

Ken Terry, CEO of Elysian Capital said, “Neil Armstrong and his management teams at Fastflow have done a wonderful job in building the Group into a business where service, safety and quality of operation are at its very heart, creating a variety of compelling growth opportunities in the future. Neil and his management have demonstrated their continued hunger to take on these opportunities and we are very pleased to be able to support them in this.

This was posted in Bdaily's Members' News section by Paul Dobbie .