Client profile: Rapid Retail

  • "We thought it was an absolute win-win because we could invest in our business while gaining tax-effective pension growth – the perfect solution.”
  • Pension pot housed in a SIPP
  • Invested £100,000 into business secured against Intellectual Property

If your business is based on building and renting retail units and kiosks to some of the most dynamic brands in sport and leisure – such as Nike, Adidas, and Arsenal – then the ability to raise finance quickly is vital.

For Rapid Retail, pension-led funding has proved the perfect solution and a catalyst to support its aim of tripling the size of the business in the next two years.

With many years’ of experience in motorsport, co-founders Nick Daffern and Andy Moss came to realise that while there was plenty of glamour for the ‘glitterati’ at the World Rally Championship or at Formula One events, a lot less attention was paid to the mass of regular fans.

Nick said: “The teams and their sponsors were charging £80 for a branded shirt or hoodie, but basically flogging them out of the back of a van or a tent. If you’re parting with that kind of money, you have the right to expect a better experience.”

Research into the sporting and events markets confirmed their views and in 2007, Rapid Retail was born. Along with sister company, UK Kiosks, Nick and Andy quickly made a name for themselves in designing and building portable retail units, shop kiosks, ticket and programme booths.

This approach resonated with sports clubs and retail brands alike. One of Rapid’s first customers was Manchester United and the company has quickly expanded to provide units in venues across Europe, the Middle East and even Iceland. From football, the sports sectors have also grown to include horse racing, cycling, motorsport and tennis.

However, the key challenge to expanding the business is the capital needed to build the units.

“What is particularly attractive to our clients is the option to either purchase or hire the units,” Nick explains. “Most hire – often for the whole life of the unit – because it avoids them having to find capital up front, but that means we have to put up the money instead.”

Rapid Retail has a good relationship with its bank but, according to Nick: “You’re wasting your time if you want a simple, old-fashioned loan. Times have changed and it’s all about finding appropriate tools for the type of finance you need.

“We knew about the alternative funding sector and had even used it before we were contacted by Clifton Asset Management. They talked to us about pension-led funding and we thought it was an absolute win-win because we could invest in our business while gaining tax-effective pension growth – the perfect solution.”

Nick and Andy’s insurance brokers had already set up a SSAS to house their £130,000 pension pot. An independent valuation of the company’s Intellectual Property (IP), showed plenty of value in the business, particularly with an A-list client base. “Because the regulatory controls are so stringent the funding took a while to set up. However, Clifton handled it perfectly all the way through,” Nick explained.

Taking £100,000 from their pension scheme, they invested the money directly into expanding the business. Three new staff joined the team, including a bilingual sales specialist to drive the company’s French customer base. “We’re going for aggressive growth, looking to triple our size over two years,” Nick states.

“The money side is really positive because pension-led funding allows us to finance growth efficiently. We’ve set our pension repayments at around 7%; a far better return than we’d seen from our regular pension providers and it’s highly tax-efficient for Rapid Retail. Most importantly, we’re not getting any grief from lenders and, while we’re paying off the loan, we can always go back for more if we need it.”

In the meantime, the world’s sports fans can be guaranteed a more enjoyable, respectful and comfortable retail experience at their next event.

Business

Nick Daffern and Andy Moss spotted there was plenty of glamour for the ‘glitterati’ at the World Rally Championship or at Formula One events but a lot less attention was paid to the regular fans, even when they were paying £80 for a branded shirt or hoodie. Step forward the co-founders of Rapid Retail in 2007 who quickly made a name for themselves designing and building portable retail units, shop kiosks, ticket and programme booths.

Funding needs

The key challenge to expanding Rapid Retail was the capital needed to build the units. “What is particularly attractive to our clients is the option to either purchase or hire the units,” Nick explains. “Most hire – often for the whole life of the unit – because it avoids them having to find capital up front, but that means we have to put up the money instead.”

Result

Nick and Andy’s insurance brokers had already set up a SSAS to house their £130,000 pension pot. An independent valuation of the company’s Intellectual Property (IP), showed plenty of value in the business, particularly with an A-list client base. Taking £100,000 from their pension scheme, they invested the money directly into expanding the business.

Going forward

Three new staff joined the team, including a bilingual sales specialist to drive the company’s French customer base. “We’re going for aggressive growth, looking to triple our size over two years,” Nick states.

  • The Pavilions
  • Eden Park
  • Ham Green
  • Bristol, UK
  • BS20 0DD
  • T +44 (0) 0800 014 7099
  • E info@pensionledfunding.com
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All companies are registered in England – Registered office: The Pavilions, 69-71 Macrae Road, Ham Green, Bristol BS20 0DD. Clifton Consulting LTD (NO. 07207668) and Clifton Wealth Limited (NO. 07207206) are appointed representatives of Clifton Compliance Services LTD (NO. 06529425) which is authorised and regulated by the Financial Conduct Authority.