31
PARKWALK ADVISORS
XEROS LIMITED
Investment
Date
2010 to 2013
Sector
Chemicals &
Materials
Location
Sheffield
Employees
33
ABOUT XEROS LIMITED:
Xeros has developed a revolutionary ‘virtually waterless’ laundry
cleaning system, using nylon beads to remove dirt from clothes,
which creates a step change reduction in water, energy and
detergent use and cuts effluent production compared to aqueous
wash cleaning.
Xeros came 2nd in the top 100 ‘2010 Best Inventions’ by TIME
Magazine and was cited in the WWF’s survey of global ‘Green
Game-Changers’.
The company has since won numerous accolades, including
Rushlight, Climate Week and Edison awards and was named
University Spin-Out of the Year in the New Energy & Cleantech
Awards 2014.
RATIONALE FOR INVESTMENT:
Parkwalk first invested in Xeros in a Series ‘A’ round in October
2010 alongside IP Group, Entrepreneurs Fund and Enterprise
Ventures.
Parkwalk was convinced by the huge potential savings of a
laundry system that used 10% of the water, 25% of the detergent
and 50% of the power.
Xeros listed on AIM at 123p per share in a £30m fund-raise in
March 2014 at a valuation of £80m. New investors included Baillie
Gifford.
Parkwalk remains convinced that:
•
Xeros is showing excellent traction with global multi-nationals
and tier-1 equipment manufacturers, chemical companies and
end-users
•
Water shortage and effluent pollution are key global challenges
•
There are multiple revenue streams accessible to Xeros in
substantial markets
This represented a 4.7x return for investors inclusive of EIS Relief
over 3½ years.
AMOUNT INVESTED AND ANY CO-INVESTORS:
Parkwalk, IP Group, Invesco Perpetual, Entrepreneurs Fund,
Enterprise Ventures, Baillie Gifford and others: £45million
TRACSIS PLC
Investment
Date
2011
Sector
Software
Location
Leeds
Employees
200
ABOUT TRACSIS PLC:
Tracsis solves a wide variety of resource optimisation, data
capture and reporting problems through technology led services
and a range of associated professional services.
The company reduces costs, improves efficiency and enhances
the operational performance of transport networks.
Tracsis was named Small Cap Company of the year 2013 and
recently won the Santander Breakthrough 50 Business Award.
RATIONALE FOR INVESTMENT:
Parkwalk invested in Tracsis in an M&A financing round in June
2011 at 45p per share (31.5p after EIS Relief), alongside Downing.
Parkwalk were very confident of the extremely strong, motivated
operational management who had an enviable record of hitting
their forecast numbers.
Parkwalk believed the acquisition of MPEC provided an
exceptional opportunity which almost doubled the company’s
sales and provided a new product line with substantial contracted
revenues.
Parkwalk expected this to be the beginning of a concerted M&A
program by Tracsis and believed diversification would add to
recurring revenues.
Since Parkwalk first invested:
•
Acquisition of Sky High plc
•
Revenues increased 600% in 4 years
•
Number of employees increased 550% in 3 years
•
Significant interest from Institutional shareholders
Parkwalk exited the investment in June 2014 at 308.5p resulting in
a 9.9x return for investors inclusive of EIS Relief over 3 years.
AMOUNT INVESTED AND ANY CO-INVESTORS:
Parkwalk, Downing, IP Group and others: £2million
Parkwalk is one of the leading Investors
in technology and growth early stage
companies. The management have a
substantial history in investment banking
and bring that record to the EIS space.
Parkwalk’s Funds have an Investment
strategy which seeks to return multiples of
original investment or to allow investments
to fail in order that EIS tax benefits
can be maximised for the investor.
Parkwalk currently publish the performance
of their funds online and have already seen
substantial returns and uplifts in valuation
from some of their investee companies.
Parkwalk invests in UK University
spin-outs generally alongside much larger
specialist VCs, giving greater certainty
of funding further investment rounds.
The investments range from start-up to
AIM listed companies, thereby giving a
spread of maturities in their funds.
Parkwalk have invested in spin-outs from
13 UK Universities and their relationship
with University Technology Transfer
departments means unique access to
potential deal-flow. This is enhanced at
Oxford and Cambridge as Parkwalk manage
specialist funds for both those Universities.
Website
Email
Telephone
0207 759 2285
