Amid the choppy waters of Covid-19, firms like Fife-based Cloudstream, which specialises in managed IT services, have been well placed to capitalise on the changing digital landscape in the UK. Established in 2014 by director Ian Maclellan, the business, which offers everything from disaster recovery to cloud migration and telecommunications infrastructure, has grown quickly through an acquisition strategy that has unified nine separate entities, increasing Cloudstream’s customer base to more than 1,000.
Now, the firm will use funding of £3m, under the Coronavirus Business Interruption Loan Scheme (CBILS), to apply a similar consolidation strategy to the firm’s existing debt. By refinancing the business’s existing acquisition funding into a single, tidy debt structure, the management team will be able to focus on growth, rather than managing credit with multiple lenders. The company has also recruited a new finance director, and will streamline business functions and offices in order to invest elsewhere.
Funding to refinance, consolidate and grow
“We know that acquisition is a proven growth strategy and that Cloudstream is operating in a very hot sector,” says Ryan Sorby, BOOST&Co’s head of the north and Scotland. “There a strong demand for its services, and the company is able to provide excellent revenue visibility and demonstrate strong profit margins compared with its peers. BOOST&Co is confident in supporting the firm and we look forward to seeing its continued success.”
“It was refreshing that Ryan and his team completely understood our proposition from the outset and could see how a CBILS facility would transform the future operating landscape of the business,” Maclellan says. “By freeing up management time spent juggling multiple short-term credit lines, we are now able to focus on growth and building strategic value. I cannot commend the team at BOOST&Co highly enough.”