Radical Sportscars' joint-founder Mick Hyde has sold his stake in the successful British sports car firm to a private consortium, in a deal which is also designed to help free up capital for the company’s future expansion plans via a debt for equity swap.
The business was founded in 1997 by Phil Abbot (the engineer who continues to lead its development) and Mick Hyde, who came from a marketing background. It has since grown into the world’s second largest constructor of purpose-built racing cars, producing around 230 cars annually - only Porsche builds more.
The company is currently valued at £30million, and provides earnings of £3.9m on revenues of £17.5m. “It enjoys significant recurring revenue from its own single-marque race series in countries around the world, its spare parts business and large existing customer base,” according to Cavendish Corporate Finance, which was hired to broker the deal.
The identity of the new ‘high net worth’ private investors has not been disclosed but according to Cavendish they include a private family office and ‘an industry expert’.
Radical was in the news at the recent Frankfurt motor show when it launched the new SR3 SL road car. Nick Dove, Radical’s commercial director, reckons the SL “marks the beginning of an exciting new chapter for both the SR range, and Radical as a global brand".
“There is still an ongoing investment opportunity, as anyone who has visited the factory recently will tell you. We keep expanding, adding new models and hiring people, and we’re getting a bit over-stuffed.” he said.Chris Rosamond