Penta Capital acquires significant stake in IDSS

July 2008

Penta Capital Partners Limited (Penta) has acquired a substantial stake in Manchester-based ID Support Services Holdings Ltd (IDSS) for an undisclosed sum.

In the year to 30 June 2008 IDSS has grown by 42% with revenues of £26.5 million. During the year the Group acquired ID Intact Limited on 1st November 2007 and GK Scotia on 16th December 2007. These acquisitions have now been bedded into the trading divisions of the Group. Further acquisitions and strong organic growth are planned for the coming year.

The deal allows Aberdeen Asset Managers Growth Capital (“AAMGC”) to substantially exit the business. AAMGC invested in IDSS alongside the incumbent senior management team in March 2007. IDSS management, led by Chairman Brian Dunn and Chief Executive David Metcalfe, and Penta plan further investment to fund future growth and acquisitions to secure the position of IDSS as a leading national service provider to blue chip, multi-site customers in the retail, public, leisure and commercial sectors.

Brian Dunn said: “This strategic investment by Penta will give the business greater growth potential as is progresses towards its goal of becoming a £100m turnover support services company. Our services are adding real value to our customers, and we have identified a number of opportunities that will improve the breadth and depth of our service offering. We are looking to grow the business both organically and by acquisition.”

Advisers to the Company were Halliwells LLP and Grant Thornton, led by Rebecca Grisewood and John Loebl.

Penta is an independently owned private equity fund management business specialising in MBOs and later stage expansion capital investments, primarily in UK business services and leisure sectors. It typically invests £5million to £20million in each transaction and currently manages over £200million of assets. Penta operates from offices in Glasgow and London.

Michael Scherpenhuijsen of Penta commented: “We are delighted to be investing in IDSS which is a quality, well managed business with strong customer relationships. The business is at an exciting phase in its development and we look forward to supporting management in their plans for further growth.”

Debt funding was provided by Yorkshire Bank, led by Roddy Kilpatrick and Owen Malton of the Specialist & Acquisition Finance team in Manchester. Owen Malton said: “Penta Capital is an ideal investment partner at this stage in the development of IDSS, as it is willing to commit additional funds to help the Group to achieve its growth ambitions, and establish it as the leading UK player.”

ID Intact Appoint New Chief Executive

June 2008

ID Intact, the new specialist Alarms Company of IDSS has appointed Graham Campbell as its new Chief Executive.

Graham, who is bringing a wealth of experience and expertise having previously worked as a Senior National Account Manager at Chubb for over a decade; has joined to spearhead growth for the business as well as support the existing national customer accounts of ID Technology Group for all alarm services.

Graham comments "I am delighted to have joined an exciting company such as ID Technology Group, and the opportunity to develop a company in its infancy was too good to miss."

"It is a great challenge, and we are determined to make ID Intact one of the UK's largest alarm and security solution providers, and a recognised name both within the industry and on the high street."

"ID Technology Group has a fantastic portfolio of customers and I very much look forward to working with the team".

The existing management team of ID Intact will remain in place, with Graham reporting to the ID Support Services Holdings Ltd board of directors.

IDSS supplies energy efficient air conditioning and security systems to Laura Ashley

April 2008

ID Support Services has become an approved contract provider to Laura Ashley, using their wealth of retail experience to install energy efficient air conditioning, heating and ventilation systems into new and existing Laura Ashley stores across the UK and Ireland through GK Industrial. As well as the stores environmental services, ID Technology and ID Intact have also begun supplying Intruder Alarm and Electronic Article Surveillance plus tags to new stores.

As one of the UK’s most respected and famous retailers, Laura Ashley is renowned for its high quality and leading edge fashion that has made it become one of the most famous brands on the high street spanning over 50 years.

With an expansive new store opening and refurbishment programme being conducted by Laura Ashley, they had to ensure that its store environment, including its heating and air conditioning system is working perfectly for its customers. GK Industrial has therefore been chosen as an approved contractor to design and install the store HVAC system, and has already installed systems to a number of UK and Ireland stores.

Alan Williams, national sales manager at GK added: “We are very proud to be associated with a high profile retailer such as Laura Ashley, and believe this is testament to our personal approach that we endeavour to give to our customers.

Our experience of delivering excellent service to other major national retailers, added with specialist industry skills and a number of specialist disciplines being supplied through one turnkey supplier was proven to Laura Ashley, and was one of the main reasons I believe why they have chosen to work with GK and ID.”

Retailers can make “massive” costs and energy savings by using ‘Free Cooling’ rather than traditional Air Conditioning systems

March 2008

New research has shown that the adoption of ‘Free Cooling’ into traditional HVAC systems in the retail sector could make massive savings in energy costs as demonstrated already by GK Industrial Ltd working in partnership with Wilkinson Hardware Stores.

Wilkinson, which has a property portfolio of nearly 300 stores across the UK, is one of the leading energy efficient and ‘green’ retailers on the high street. As part of their proactive approach to the environment and energy management, Wilkinson is constantly searching for ways in which it can maximise the efficiency of its heating and cooling systems to combat increasing energy bills.

GK Industrial provides energy efficient climate control solutions to Wilkinson covering the installation and maintenance of its entire HVAC estate. This gave GK the ideal platform to develop the Free Cooling initiative in partnership with Wilkinson.

By working together the Free Cooling concept was developed and applied to the existing HVAC systems, which in essence uses outside ambient air temperature to maintain the required store temperature parameters; thus replacing the traditional method of constantly running rooftop compressors to re-circulate air to a set temperature irrespective of the temperature outside. Suitable testing validated the benefits by quantifying the associated energy savings.

The results showed that on average the Free Cooling system ran at almost 80% less than the original recirculation system - 9 hours compared to 45 hours. This equated to an average energy cost saving of over 40p per square foot per annum in a typical Wilkinson store based on current energy prices.

Wilkinson is now rolling out the Free Cooling system to 148 of its stores where ducted ventilation systems allow Free Cooling to be undertaken.

David Goldberg, Managing Director at GK Industrial comments:

“These findings are truly fantastic for both GK and Wilkinson. It proves that Free Cooling can deliver huge energy cost savings for the retail sector by maintaining or reducing the internal temperature without the need to run the expensive mechanical refrigeration system.

“There are so many direct benefits to Free Cooling. To name a few, it reduces compressor running hours, energy usage and running costs, whilst increasing the lifespan of the system. It also improves air quality by introducing greater quantities of fresh air.”

Leigh Oldfield, Property Maintenance Manager for Wilkinson said:

“In addition to the cost savings and benefits in relation to long term sustainability, the new system will help create a better ambience in our stores. Inevitably it will lead to an improved shopping experience for our customers and a better working environment for our employees.

“We are working closely with GK Industrial to review our energy efficiency across the store network. Wilkinson has set an objective to become one of the most energy efficient retailers on the high street. This is not just in response to increasing energy costs and impending legislation, but as part of our ongoing commitment to protect the environment.”

The Wilkinson trial lasted for 67.5 hours over a three day period, with outside temperatures ranging from 13 centigrade to 23 centigrade during the trial.