To allow the business to survive, ICS2’s directors set about the task of seeking new investment to place the company on a level keel and return the business to profit. The original owners and private investor in the business, working closely with Dundee Council, the Scottish Executive, and Barwell plc, and with DC Consulting as advisers, negotiated a new funding package that was acceptable to the Bank of Scotland and all relevant parties involved. As a result a total refunding package of £500k was achieved.
ICS2 provides specialist cables for many industries, including the telecomms, automotive, multimedia, industrial, military, and medical sectors.
The company can respond to requirements for hi-flex, high volume, improved signal speed, hi-temperature or simply ruggedised cable for buried or outdoor use, and design and manufacture a bespoke system.
ICS2 was formed as a response to the severe downturn in the industry at the beginning of the millennium, when the bubble burst on the dotcom boom, 3G licence holders in Europe were left with commitments they were unable to fulfil, and the telecom sector collapsed. This decimated the UK cable industry. ICS2 was started in early 2002 by Paul Munro and Ian Johnston in the belief that the industry had overreacted in adjusting to demand and with the recognition that ‘positive outsourcing’ would become a strategic part of the UK cable industry in the future.
Having spent most of their working lives in the industry, they quickly became established, initially providing consultancy support to underperforming cable companies in the UK, Europe and Russia whilst establishing their first manufacturing facility in Glenrothes. With grant support from the Scottish Executive and personal investment from the owners they quickly increased turnover to £1 million in a three year period and generated profit in the second year of operation.
By 2007 the potential for further growth was being constrained by the lack of space in the company’s 10,000sqft manufacturing premises, and following the successful acquisition of a recently closed cable company in Tayside the company relocated to a bespoke 32,000sqft facility in Dundee. With the introduction of new capital from a private investor supported by a new £250k grant from the Scottish Executive, the business set about the task of relocating the complete cable manufacturing operation from Glenrothes to Dundee. During the 15 month upheaval the company managed to maintain its sales at £1.2 million and continued to invest heavily until the market collapse at the end of 2008.
Having already completed 90% of its relocation capital programme in the lead up to the market collapse, ICS2 like many others had to react quickly and implement an immediate restructuring plan to meet the adverse market conditions that prevailed. The need to reduce headcount exacerbated the situation, by preventing any further draw down of the grant that was conditional upon employee numbers.
To allow the business to survive, ICS2’s directors set about the task of seeking new investment to place the company on a level keel and return the business to profit. The original owners and private investor in the business, working closely with Dundee Council, the Scottish Executive, and Barwell plc, and with DC Consulting as advisers, negotiated a new funding package that was acceptable to the Bank of Scotland and all relevant parties involved. As a result a total refunding package of £500k was achieved.
Paul Munro, managing director of ICS2, commented “With the new funding in place at the end of February 2010 the company is now looking forward to a bright future. The investment has coincided with the launch of an extended range of new products that will allow us to realise our ambitious growth targets for the business and expand into new industry sectors both at home and abroad. The additional funding will continue to reinforce our commitment to internal research and development and provide the working capital necessary for a growing business.”