British International

Source: Exec Digital UK

Date :31/05/2007 16:15:00

British International strengthens its position following £5 million management buy out

A leading supplier of helicopter services in the UK, British International operates a mixed fleet of helicopters that serve the civilian and military markets in the UK as well as overseas. The company’s success has seen it generate in excess of 130,000 passengers annually and up to 40 individual flight movements daily

Written by Donna Harle & Produced by Paul Radbourne

The modern incarnation of British International was established in 2000 with the backing of 3i and the Bank of Scotland, through a management buy in of non-oil related operations of Scotia Helicopters and the Canadian Helicopter Corporation (CHC), with Bank of Scotland providing funding of £22 million. The company’s origins stretch back further than this however; British International now operates the world’s longest running helicopter passenger service, between its heliport in Penzance and the Isles of Scilly. The company’s excursions from Penzance to St Mary’s have been operated by helicopter since 1964, and it remains the only air operator to fly direct to both islands, Tresco and St Mary’s.

The company is a supplier of helicopter services in the UK and owns and operates 11 helicopters ranging from four seat utility aircraft to 28 seat high capacity equipment.

British International also has a long standing relationship with the Ministry of Defence, providing helicopter support to the Falkland Island Garrison and Flag Officer Sea Training and Joint Maritime Courses in Plymouth and off the West coast of Scotland.

From its base in Cardiff, British International provides the Air Support Unit to the joint police forces of South Wales and Gwent and has a contract with QinetiQ for the retrieval of targets used in training RAF pilots off the coast of west Wales. It also has a thriving ad hoc charter business, with customers including the BBC and Network Rail. Headquartered in Sherborne, Dorset, the company currently employs approximately 160 staff and has an annual turnover of £19 million.

Group investors

In 2006 British International completed a secondary management buy out financed by a syndicate of investors led by Matrix Private Equity Partners, with the backing of Finance Cornwall and Chrysalis Venture Capital Trust. The syndicate has invested £5 million equity, with senior debt and asset finance being provided by Bank of Scotland Corporate. This injection of funds has replaced 3i as equity provider and provides funding for the future development of the business.

Managing Director Tony Jones and deputy managing director Peter Sorby have been with the company since its formation. They have been joined on the board by Chairman Peter Shawyer who is a former managing partner of Deloitte in the UK, and Mike Walker, portfolio director of Matrix.

Following the buy out, the management team of British International said: “We feel that with the backing of Matrix, Chrysalis and Finance Cornwall, and the continued support of Bank of Scotland, British International will be able to continue to strengthen its position within its core markets and undertake further expansion into new areas of business in the knowledge that we have firm backing from a group of investors.”

Neil Orr, director of Bank of Scotland, who led the bank team, assisted by Chris Selfe, said: “British International is one of the UK’s leading suppliers of helicopter services and has a number of important long-term public service contracts. With strong management and further opportunities presented by the offshore oil industry, we share the confidence of the management team in growing the business further.”

Management & training, services & long-term contracts

With such a varied client base, British International can provide training and facility management for heliport operations both in the United Kingdom and overseas. The ground training based in Cardiff combines modern facilities along with a flying syllabus in specific helicopter types operating at bases in Penzance, Plymouth and Cardiff. The company boasts one of the only two S16 simulators in the world, and undertakes training for third parties at its facility based in Bournemouth International airport. The company also hosts a number of additional courses such as crew resource management, smoke and fire training and cabin crew training.

The company has a long term lease at a new £3.8 million heliport facility located in Cardiff that is managed on behalf of Cardiff county council. This facility is the main operating base of its police support services, whereby the handling of considerable passenger traffic, particularly during major sporting events such as football, rugby and motor rallies, takes place. The facility handles over 180 movements in a single day with up to 40 aircraft parked at any one time.

A number of helicopters can be leased as either a complete package with pilots and engineering support on an aircraft, crew, maintenance and insurance basis or the helicopter can be leased on a aircraft only basis all of which can be negotiated under long term or short term commitments.

British International undertakes its own maintenance and has also diversified into producing third party helicopter and fixed wing maintenance services and training. It is certified to BS EN ISO 9001: 2000 by the British Standards Institute and holds a JAR145 maintenance approval.

With an extensive range of services, experience and the firm backing from group investors there is little wonder that British International is enthusiastic about strengthening its position within its core markets and undertaking further expansion into new areas of business.