An award-winning Hull company which provides managed IT and telecoms services has secured a £1.4m debt funding package to enable it to complete a management buy-out and support the next phase of its growth.
The One Point has secured funding from Mercia’s SME Loans fund and NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund.
The deal will give the company’s founder Martin Lauer a majority shareholding and enable Spectrum, a Hull-based managed print and digital services firm which has been a partner in the business since 2014, to exit the company and focus on its new digital growth strategy.
Founded in 2005, The One Point provides a single point of contact for businesses seeking IT services and support, cybersecurity, digital services, CRM systems, apps and internet-based phone systems, data and mobile solutions. The company, which has its headquarters in Hull and offices in Newcastle and Cleckheaton in West Yorkshire, has grown overall turnover by around 65% in the past five years.
Demand for outsourced IT services is particularly strong, with revenues for its managed IT division up by 79% in the past two years. The One Point currently employs around 40 staff and expects to create an additional 20 jobs by the end of 2025.The SME Loan from Mercia was used to complete the buy-out while the NPIF funding will support the company’s further growth.
Martin Lauer, founder and CEO, said: “With an increasing number of companies outsourcing IT services, our business has been growing rapidly. With the backing of Mercia and NPIF, we can now focus on meeting this growing demand and strengthen our presence in the region, particularly in Yorkshire and the North East, to take the business to the next level.”
Mike Rogers and Rebecca Pickering from the Mercia team worked on the investment. Rebecca Pickering said: “The One Point enables businesses to access a full range of services from just one phone call rather than dealing with different suppliers. Martin and the team have built a great business with a strong regional presence. The funding will allow him to take full control of the business and allow both parties to pursue their separate growth strategies.”
Keira Shepperson, at British Business Bank, said: “Businesses are moving towards digitalized processes and solutions at rapid pace, and The One Point cleverly identified the demand for a onestop shop for IT needs all the way back in 2005. Its recent growth over the last few years has been exceptional, which has also helped spotlight the Humber area as a thriving region. The team’s success is also a testament to the transformational effects that funding can have in a organisations’ journey, and we hope that it inspires other business leaders to seek funding of their own.”
Independent consultant Richard Townsend provided fundraising advice to The One Point.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.