Thursday 24th November 2011

Radical co-founder says ker-ching and sells up

Mick Hyde sells stake in the £30m business he helped set up

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One of the co-founders of Radical Sportscars, Mick Hyde, is reaping the rewards of a job well done - he's sold his stake, following his effective retirement from the business last year.

Together with business partner and engineering whizz Phil Abbott, marketing specialist Mick helped to turn Radical from a crazy idea based on sticking a motorcyle engine into a racing chassis in 1997 into a company that is the second-largest producer of bespoke racing cars in the world today. With an annual production figure of 230 cars, only Porsche makes and sells more bespoke racing machinery. Phil continues to lead the company as before.

Details of the deal remain confidential, but we're told the new investor group that has bought Mick's stake include 'high net worth individuals' and 'an industry expert'.

Apparently the deal also includes a debt-for-equity swap, so Radical will have new access to capital. This should help with future expansion plans, including more projects like the SR3 SL road car, which was launched at the recent Frankfurt show.

 

[OperationAlfa]

Job well done indeed!

[rhinochopig]

Looking forward to see what the mooted hard-top looks like.

[ktm301p]

It wasn't bought by a particular Russian chap, was it?

[Stu R]

Good news. I'm sure he'll be able to retire happily with a great sense of achievement

[0-100-0]

ktm301p said:

It wasn't bought by a particular Russian chap, was it?

He's the 'industry expert'.

[urquattro]

Just reward for years on input and focus, I hope the company retains it excellent core and stays in UK, and no foreign crap come their way as per football magnates that infest this company with either no money or hookey funds.

[alrightmate]

Bit xenophobic my friend ...

[80quattro]

alrightmate said:

Bit xenophobic my friend ...

... but a fair comment, nonetheless

[Caractacus]

80quattro said:

alrightmate said:

Bit xenophobic my friend ...

... but a fair comment, nonetheless

And exactly what I was thinking as I read the article. BTW, I'm a Jonny Foreigner, so can't be xenophobic.

[Roop]

I remember Mick from Tuscan days - Nice chap. Great to see that he made it work. At the time we thought he was mad...!

[Ozzie Osmond]

Errm,

• Where does that £30m figure come from?
• What percentage of the business did he own?
• How much did he receive for his share?

[AdamPT]

Ozzie Osmond said:

Errm,

• Where does that £30m figure come from?
• What percentage of the business did he own?
• How much did he receive for his share?

Erm, why? You a shareholder? Of not I'd assume that info is private.

[Ozzie Osmond]

...because despite the hype we can't tell whether the company is financially successful or not. Might be £15m (as the article implies) or might be £4.50

At 230 cars a year (roughly one each working day) they'd need a massive net profit per car to get anywhere near that £30m figure for the business.

[peterg1955]

Don't forget PowerTec are part of the Radical company so engine supply and rebuilds have to be included in the turnover/profit equation

[johnpeat]

AdamPT said:

Erm, why? You a shareholder? Of not I'd assume that info is private.

Perfectly reasonable questions given the nature of the article - most businesses must file accounts which are publicly available - nothing special about being a shareholder.

[johnpeat]

Caractacus said:

And exactly what I was thinking as I read the article. BTW, I'm a Jonny Foreigner, so can't be xenophobic.

a classic mistake if ever there was one...

[gtdc]

Good for him.

They are a great company to deal with. Hope it all continues well for them.

[dapearson]

It always bothers me when there's talk of a currently financially sound, interesting car company looking to take on debt.

[GrahamG]

Ozzie Osmond said:

..
At 230 cars a year (roughly one each working day) they'd need a massive net profit per car to get anywhere near that £30m figure for the business.

A point which entirely ignores the fact that Radicals are, for the most part, pure racing machines - The proportion of revenue accounted for by parts, repairs and refurbs is very much higheer than for their roadgoing brethren

[chickensoup]

If it is a super doopah £30 million business, why the debt for equity deal?