Leading software company Mitrefinch is looking at expanding into international territories after it revealed a large-scale private equity investment of more than £20m.
The investment, part of a management buyout led by chief executive Debbie Guppy, will see LDC become a significant shareholder in the company, alongside additional members of the management team.
Ms Guppy also confirmed to The Yorkshire Post that the firm’s headcount would increase as a result of the move with recruitment already underway in America and further jobs expected to be created at a newly-expanded base in York. Mitrefinch provides an integrated suite of HCM software spanning time and attendance, rostering, HR and payroll. Its products are helping more than 3,500 organisations to reduce cost whilst improving efficiency and compliance.
Customers include small and medium-sized firms (SMEs), mid and large corporates, public bodies, charities and universities, with brands such as L’Oreal, Nestle, Amec Foster Wheeler, DFS, the Forestry Commission and the University of Leicester.
Human capital management software is a $1.8bn global market that is estimated to be growing at more than 10 per cent per annum. Mitrefinch’s revenues have grown 50 per cent over the last three years from £10m to £15m.
Following LDC’s investment, the firm plans to expand its nascent overseas business in Canada, the US and Australia, as well as developing new and existing relationships in its more established UK business.
This is an important step for the business and an exciting time for our people and customers.Debbie Guppy
It also plans to commit significant investment to new product development to continue expanding and improving its suite of products, including its software as a service (SaaS) offering and its rostering product suite.
Ms Guppy told The Yorkshire Post: “Our overseas plans are to ultimately grow our international offices in Canada, Australia and the US. We have already started the recruitment process in the US, and will be expanding our established teams in these territories whilst looking at the business potential in other countries. As a result of LDC’s investment and the growth plan, we will be looking to expand the office to accommodate an additional 20 employees and we will continue to operate from York. The aim is to build the brand and become a more dominant force in the HCM marketplace globally. We believe that this will enable us to reach out to new clients and a wider customer base, as well as new business partners, to grow and develop Mitrefinch further.”
Jane Gilbert Boot, an investor in LDC’s Leeds office, said: “Debbie and the team have built an enviable market position for Mitrefinch, with a high-performing suite of integrated products and a loyal, fast-growing customer base.
“With significant additional capital to invest in the business, a high quality team and a clear growth strategy, it has a real opportunity to achieve a dominant position in a growing, consolidating and globalising marketplace.”
This deal is one of several LDC has signed off on around the region in recent months. It was involved in the management buyout of PAW Holdings Limited, and a £16.5m investment in Wakefield-based games developer Team17.