Simplicity – one of the recruitment industry’s leading providers of outsourced back office services including the award-winning cashsimply product – has announced a multi-million pound cash injection as part of its ambitious expansion plans to develop the business across a spectrum of service sectors including training, security, cleaning and facilities management.
The company’s directors – who had previously focused solely on the recruitment sector – have identified additional markets which “will benefit from our successful business model.”
The £6,000,000 asset based lending deal has been structured and delivered by PNC Business Credit, which funded the refinance and provided working capital going forward for Simplicity’s growing customer base.
David Thornhill, Simplicity’s MD, explained: “We chose PNC Business Credit because we appreciated the flexibility they offered. They were willing to increase the facility as our business grows which was an important consideration for us. They really understood our model which will be transferred across a range of industry sectors. Our intention is to replicate our success in the recruitment sector.”
The recruitment sector is valued at almost £20 billion, according to industry research and the UK Recruitment Industry is one of the largest and most sophisticated in the world, second only in size to the US. Building on this sound business platform Simplicity will develop its offering to a number of complementary service sectors with similar volume labour requirements including:
Outsourced Facilities management estimated industry value: £9.5 billion
Contract cleaning sector estimated industry value: £5.3 billion
Manned security sector estimated industry value: £3.2 billion
Private outsourced training estimated industry value: £3 billion
Tim Phillips, Regional Director, South West, of PNC Business Credit, adds: “It’s immensely satisfying to play a part in a company’s development by structuring the best deal to help the directors make that happen. We are delighted to be working with Simplicity at this exciting time in its growth and we wish the team every success for the future.”
Thornhill added: “Our strategy is to transfer and adapt knowledge, products and services which we have developed for the recruitment sector and in this way fuel growth for the business and importantly leverage additional income streams. This is a pivotal and exciting time for our business which will enable us to produce quantum growth, employing innovations which have helped us retain the role of recruitment industry pioneer for back office and funding services .”