Compello secures £10m funding boost

Compello secures £10m funding boost

The recruitment group has secured a £10m sales finance facility from Barclays, which will also be providing day-to-day banking and foreign exchange services for the company.

The funding will help drive international growth for the Edinburgh-headquartered business which employs 150 staff.

Founded in 1998 by chairman John Hailstone, Compello now operates seven brands in territories including the US, Qatar and Dubai in addition to four offices in the UK and has a turnover of £65m.

Following the recession, the group diversified from a multi-service, generalist agency towards a specialist approach, which was unique in the recruitment market at the time. Compello restructured the business to reward staff and help develop ownership.

It is now parent company and majority shareholder in each of the brands, while local management teams hold the remaining stakes. Specialisms include healthcare, IT and digital skills, and business support services.

Following a number of successful overseas acquisitions, Compello is eyeing further growth in the US where it has tailored its offerings to the local employment market, for example, with a specialist pharmaceuticals and life sciences agency in Boston and a technology firm in San Francisco.

John Hailstone, chairman of Compello Staffing Group, said: “We have successfully rolled out our business model in the UK and overseas and needed a banking partner that could support our future growth plans.

"Barclays were progressive, proactive and forward thinking. They shared our vision for the successful long-term development of the group.

“There is no doubt that the recruitment market in the UK is challenging and, while we have continued to secure new private and public sector contracts domestically, we have also been actively seeking out growth opportunities overseas.

"We see significant future potential in these markets, particularly the US, and this funding will help deliver on these ambitions.”

Jamie Grant, head of corporate banking for Barclays in Scotland, added: “John and his team have a long track record of success and have continued to innovate to stay at the forefront of the recruitment market.

"We are proactively looking to support ambitious Scottish businesses like Compello to realise their potential.

“The deal also demonstrates our international capabilities and we are working with the company to manage foreign exchange services across multiple currencies in addition to providing funding and credit card facilities.”