Intelligent Water, a business water retailer based in Lanarkshire, plans to more than double its turnover within five years after arranging a £3.5m finance facility with Beach Point Capital UK, the company said.
The firm, whose registered name is Intelligent Business Water Ltd, turns over about £8m a year now and is aiming for roughly £18m by the end of its five-year plan. Most of the new money will cover the extra working capital needed as it signs up more customers. The rest goes on investment as it scales and on further strategic opportunities.
Key points
- Facility: £3.5m from Beach Point Capital UK, a direct lender to ambitious SMEs in the UK and Ireland.
- Fund: one of the first deals from Beach Point’s fourth fund, BPC Europe SME DAC, which the British Business Bank backs.
- Today: turnover of around £8m and almost 4,000 customer supply points in Scotland.
- Target: turnover of around £18m in five years.
- Founded: 2021.
The market it competes in
Scotland was the first country anywhere to open its non-household water market to competition, so eligible businesses and organisations can choose which licensed retailer supplies them. Intelligent Water, which started trading in 2021, has grown quickly into an established challenger in that market.
Beach Point Capital UK provides growth capital that does not dilute owners’ equity, aimed at SMEs that are profitable or on a clear path to it, with contracted or recurring revenue. It is part of Beach Point Capital Management, a global credit investment manager with more than $20bn under management.
What they said
Thomas McDade, a director of Intelligent Water, called the deal “an important milestone” and said it “gives us significant additional headroom and flexibility to accelerate our growth and pursue further opportunities as they arise”.
Seth Vaughan, vice president at Beach Point Capital, pointed to the company’s “experienced management team and a compelling growth strategy”.
Adam Kelly, managing director for debt and regional funds at the British Business Bank, said that with the bank backing funds such as Beach Point’s, growing businesses like Intelligent Water “can increasingly access the finance they need to invest and scale”.