YFM invests £5m in KeTech

YFM invested via its British Smaller Companies VCT funds and its 2015 co-investments fund.

The fresh capital will be used to boost production in order to meet increased demand for KeTech's products.

Previous funding
Octopus Investments injected £2m into KeTech group as part of £4.5m funding round in August 2009, with Centric Commercial Finance providing £2.5m of invoice discounting facilities, according to unquote" data.

Company
Established in 1999 and based in Nottingham, KeTech provides rail communication systems and security products. The company recently secured a £7.2m contract to provide train driver information systems to Bombardier/Crossrail. KeTech also works with the UK Ministry of Defence, Japan's Ministry of Defence, London Underground, Northern Rail, Thales, the German Federal Police and Gatwick Airport.

The company employs 65 people across its offices in Nottingham, Preston and London.

For the year ending in August 2014, KeTech generated sales of £10.2m.

People
As part of the transaction Richard Moon, chair of YFM portfolio company Seven Technologies, has joined KeTech's board as chairperson.

Steve Berg is CEO of KeTech, Mike Tebbut is CFO and Denise Lawrenson is managing director of the company's rail division.

Ian Waterfield, investment director, led the deal for YFM.

Advisers
Equity - Springboard Corporate Finance, David Neate (Corporate finance); Gately, Mark Rutherford (Legal); Mazars, Julian Clough, Adam Foster (Financial due diligence); The Quinn Partnership, Mike Stiles (Management due diligence); Claritas Tax, Iain Wright (Tax).
Management - Browne Jacobson, Richard Cox (Legal).

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• Topics
• UK / Ireland
• Expansion
• Technology
• YFM Group