buyout track rep

Buyout Track 100 Research Report 2011 �Research Report 2011

Britain's private equity-backed companies

with the fastest-growing profits

In association with

© 2011 Buyout Track 100 www.fasttrack.co.uk

Buyout Track 100 Research Report 2011 �

CONTENTS

INTRODUCTION �The top 10 companies 1

EXECUTIVESUMMARY 2 KEYSTATISTICS 4EBITDA 4 Margins 5Sales 5Staff and job creation 6Debt 6 Private equity house breakdown 7 Deal type breakdown 7Deal activity 7 Sector breakdown 8Industry breakdown 8Regional breakdown 9 New companies 9Sustained growth 10

KEYTHEMES ��

SELECTEDCOMPANYPROFILES �2Increased deal activity 12 Outsourced public services 13Growth by acquisition 14Counter-cyclical businesses 15Well-known brands 16

20��BUYOUTTRACK�00LEAGUETABLE �7

�0BIGGEST 2�

METHODOLOGY 23Qualification criteria 23 Research approach 23Definition of private equity 23 Disclaimers 23

ABOUTTHESPONSORS 24

BACKGROUND 26About the authors 26About Fast Track 26Contact details 27



Top�0BuyoutTrack�00compan�es

Rank

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INTRODUCTION

This is the fifth annualSundayT�mesBuyoutTrack�00 league table, which ranks Britain’s 100 private equity-backed companies with the fastest-growing profits (EBITDA‡) over their latest two financial years. The league table has title sponsorship from Delo�tte, and main sponsorship from LloydsBankCorporateMarkets, Sk�llcap�tal and UBSWealthManagement.

The Buyout Track 100 is the only league table of its kind in Britain, ranking private equity-backed companies, rather than private equity deals at entry or exit. Past stars include Betfair, Somerfield, Kettle Foods and St Tropez.

This year’s league table findings suggest that these private equity-backed companies have weathered the harsh trading conditions. Average profit growth over latest two years was 48% pa, down nine percentage points on the 2010 league table, but total profits are up.

Many of the companies on the Buyout Track 100 are household names, including retailers Cath Kidston (No 18, backed by TA Associates), Evans Cycles (No 4, backed by Active Private Equity), and Poundland (No 46, backed by Warburg Pincus).

Businesses with profits greater than £50m are listed separately in the '10 Biggest' league table (see page 22).

Simon Calver, CEO of Lovefilm.com, who announced in January that an agreement had been reached for Amazon to acquire it outright.

1 3 Lovefilm.comOnline DVD rental provider

West London Dec 09 283.72 15,961 1,084 97,170 427 Private equity consortium (38%), Amazon (45%), management and others (17%)

2 40 GOOutdoorsOutdoor equipment retailer

Sheffield Jan 10 114.04 *6,617 1,444 *74,005 497 YFM Group (21%), management (79%)

3 50 Aes�caPharmaceut�calsPharmaceuticals manufacturer

Newcastle Dec 09 105.74 14,700 *3,473 84,600 615 LDC (60%), management (40%)

4 EvansCyclesBicycle retailer

Sussex Oct 09 101.78 5,933 1,457 72,969 715 Active Private Equity (70%), management and others (30%)

5 CelerantConsult�ngOperational management consultancy

Richmond Dec 09 100.31 7,483 1,865 122,729 571 Management (53%), Caledonia Investments (47%)

6 XLNTelecomTelecoms services provider

Central London Mar 10 100.11 11,572 2,890 54,862 100 ECI Partners (>50%), management (<50%)

7 HellermannTytonCable manufacturer

Manchester Dec 09 106.95 7,435 1,736 37,753 427 Doughty Hanson (100%)

8 Actur�sSoftware services provider

Central London Sep 09 88.24 5,750 1,623 14,083 110 Management (<80%), Summit Partners (>20%)

9 Un�tedHouseGroupBuilding contractor

Kent Dec 09 86.71 11,169 3,204 159,645 466 Management (60%), LDC (40%)

10 DWSBodyworksCar repairer

Essex Sep 09 84.13 4,135 *1,220 36,755 379 Risk Capital Partners (60%), management (40%)

Base

year

pro

fit

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test

sales

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Main

share

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§ compound annual growth rate between 2007/08 and 2009/10 * annualised figure‡ EBITDA is defined as operating profit + depreciation + amortisation

Staff

EXECUTIVESUMMARY

Growth�nprof�tsThis year’s Buyout Track 100 companies achieved an average two-year profit growth of 48% a year, compared with 57% among last year’s league table companies.

The top-ranked company, online DVD rental provider Lovefilm.com backed by a consortium including Balderton Capital, had average profit growth of 284% a year from £1.1m in 2007 to £16m in 2009.

The 100th ranked company, fleet management software provider Trafficmaster, backed by Vector Capital, grew profits an average of 21% a year, from £9.4m in 2007 to £13.6m in 2009.

Combined profits increased from £691m to £1.4bn, compared to £1.3bn recorded by last year's league table companies.

Profit growth across the companies has been driven by improvement in EBITDA margins, which have increased from an average of 10% in 2007/08 to 15% in 2009/10, combined with strong sales growth.

SalesTotal sales increased on average 17% a year from £6.8bn in 2007/08 to £9.2bn in 2009/10.

Sales ranged from debt purchaser Marlin Financial (No 15, backed by Duke Street Capital), with sales of just £11.5m in 2009, to discount retailer Poundland (No 46, backed by Warburg Pincus), with the highest sales of £510m in 2010.

Staffandjobcreat�onCompanies employed a total of 90,909 staff in their latest year, an increase of 16,198 over the last two years.

The largest employers are Poundland, with 6,700 employees across more than 300 stores, followed by marine services provider Inchcape Shipping Services (No 24, backed by Istithmar World Capital), employing more than 3,500 staff in 66 territories.

Debt

Companies reported a combined debt of £5.6bn.

Average debt (defined as long-term plus short-term borrowings) of £56m equated to four times EBITDA.

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Growth�nprof�ts

Number of companies in each range

28

5

1 >200%

101%-200%

51%-100%

30%-50%

<=30%

31

0 10 20 30 40

35

Character�st�csofanaverageBuyoutTrack�00company

Prof�ts

Growth over two years 48% pa

EBITDA in 2009/10 £13.6m

EBITDA in 2007/08 £6.9m

EBITDA margin 15%

Sales

Growth over two years 17% pa

Sales in 2009/10 £92m

Sales in 2007/08 £68m

Staff

Typical number of staff in 2009/10 909

Typical increase in staff over two years 22%

Debt

Debt in 2009/10 £56m

Companycharacter�st�cs

Region Greater London (27%)

Sector Services (51%)

Buyout Track 100 Research Report 2011 2



EXECUTIVESUMMARY(cont�nued)

Dealact�v�ty27 league table companies have had new private equity investors since the beginning of 2010. The comparative number on last year's league table was 10.

13 of the companies on the 2010 Buyout Track 100 have completed deals in the last year, compared to only three the year before.

Sectorand�ndustrybreakdownThe serv�cessector dominates the league table, accounting for 51 companies falling into this category, including healthcare providers, travel agencies and IT services providers. Many have public-sector clients.

The next biggest sector is reta�l with 28 companies selling products including clothing, sports and outdoor gear, homeware, and food and drink.

The largest industry group is consumer, containing 31 companies such as fashion retailers and discount retailers.

Bus�nessserv�ceshas 14 companies, including management consultancies and marketing agencies.

Reg�onalbreakdownLondon is home to the highest proportion of companies with 27, followed by the Southeast with 21.

Newandsusta�nablegrowthcompan�esThere are 48 new entrants on the league table this year.

37 companies appear for a second consecutive year. 11 have appeared in the league table for at least three years in a row. Castlebeck (No 72, backed by Lydian Capital Partners) and Wood Mackenzie (No 63, backed by Charterhouse) have appeared on all five Buyout Track 100 league tables.

Well-knownbrandsA number of household retail names are featured. Evans Cycles (No 4, backed by Active Private Equity), Cath Kidston (No 18, backed by TA Associates) and 99p Stores (No 84, backed by Barclays Ventures), all appear for the first time. Lovefilm.com (No 1, backed by a private equity consortium), GO Outdoors (No 2), Jack Wills (No 36, backed by Inflexion Private Equity), and Poundland (No 46, backed by Warburg Pincus) all feature for a second time. YO! Sushi (No 82) and Dreams (No 83) appear for a third time.

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Cath Kidston (No 18), appears on the league table for the first time following a £100m buyout backed by TA Associates in March 2010.



KEYSTATISTICS

EBITDACompanies on the league table had to have EBITDA of between £3m and £50m in their latest year. Businesses with profits greater than £50m are listed separately in the '10 Biggest' league table (see page 22).

This year’s Buyout Track 100 companies achieved an average two-year profit growth of 48% a year, compared with 57% on last year’s league table. Total combined EBITDA increased from £691m in 2007/08 to £1.4bn in 2009/10.

Energy research consultancy Wood Mackenzie (No 63, backed by Charterhouse) had the highest EBITDA on the table at £48.5m in 2009. Value food retailer Frozen Value (No 67, backed by 3i) had the lowest EBITDA at £3.1m in 2010.

More than half of the companies (55) had EBITDA of more than £10m in their latest year (2009/10), compared to 40 last year. 17 companies reported EBITDA in excess of £20m, including fashion retailer Republic (No 48, backed by TPG), and bed retailer Dreams (No 83, backed by Exponent).

The top-ranked company, online DVD rental provider Lovefilm.com (backed by a consortium including Balderton Capital), had average profit growth of 284% a year from £1.1m in 2007 to £16m in 2009. This is the highest growth rate recorded in five years of Buyout Track 100.

The 100th ranked company, fleet management software provider Trafficmaster, backed by Vector Capital, grew profits an average of 21% a year, from £9.4m in 2007 to £13.6m in 2009.

Combined profits were £1.4bn, up 6% compared to combined profits of last year's league table companies of £1.3bn.

The biggest absolute increase in EBITDA recorded over two years was by the university accommodation provider UPP (No 22, backed by Barclays Infrastructure Funds), which grew profits by £26m from £15.6m in 2008 to £41.6m in 2010.

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17£20m - £50m

£10m - £20m

£5m - £10m

£3m - £5m

0 10 20 30 40

EBITDAonma�ntable

Number of companies in each EBITDA range

28

17

�0compan�esw�ththeh�ghestEBITDA

Rank NameActivity

2009/10 EBITDA

£m

Latest FYE

63 WoodMackenz�eEnergy research consultancy

48.5 Dec 09

79 Innov�aF�lmsFilm manufacturer

45.6 Dec 09

52 InexusGas transportation operator

43.5 Jun 10

22 UPPUniversity accommodation provider

41.6 Aug 10

24 InchcapeSh�pp�ngServ�cesMarine services provider

41.5 Dec 09

41 Br�taxCh�ldcareChild car seat maker

36.2 Dec 09

57 DebGroupSkincare product maker

35.5 Dec 09

55 Surv�tecGroupSafety and survival equipment maker

34.8 Mar 10

96 Br�ghtHouseHousehold goods retailer

34.1 Mar 10

48 Republ�c Fashion retailer

33.6 Jan 10

Wood Mackenzie (No 63), backed by Charterhouse.



Marg�nsProfit growth across the companies is a function of an improvement in EBITDA margins, which have increased from an average of 10% in 2007/08 to 15% in 2009/10, and sales growth averaging 17% a year (see below).

Last year's league table had an average EBITDA margin of 20%. This reduction of five percentage points suggests continued pressure on margins due to ongoing tough trading conditions.

22 companies showed a drop in EBITDA margins in their latest financial year.

Five companies have EBITDA margins greater than 50%. The company with the highest margin is Inexus (No 52, backed by a consortium led by Challenger Infrastructure Fund), reporting margins of 72.5% with EBITDA of £43.5m on sales of £60m.

The company with the lowest margins was discount retailer 99p Stores (No 84, backed by Barclays Ventures) with an EBITDA margin of 2.5%.

SalesTotal combined sales increased an average of 17% a year from £6.8bn in 2007/08 to £9.2bn in 2009/10.

The company with the biggest sales in its latest year was the discount retailer Poundland (No 46, backed by Warburg Pincus) with sales of £510m and more than 300 stores.

Online payment provider, Skrill (No 11, backed by Investcorp), recorded the highest growth in sales, increasing 85% a year from £12.5m in 2007 to £42.7m in 2009. Formerly known as Moneybookers, the company is currently undergoing a rebranding process, and was top of last year's league table.

Debt purchaser Marlin Financial Group (No 15, backed by Duke Street Capital) had the lowest sales on the league table, at £11.5m.

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�compan�esw�ththeh�ghestEBITDAmarg�ns

Rank NameActivity

EBITDA margin

Latest FYE


72.5% Jun 10

74 W�relessInfrastructureGroupWireless tower operator

63.2% Dec 09

15 Marl�nF�nanc�alGroupDebt purchaser

58.1% Dec 09

53 WeldexCrane hirer

52.5% Nov 09

60 Gr�ffinMar�neTravelMarine Travel Agency

51.2% Dec 09

Rank Company Activity

2009/10 sales £m

Latest FYE

46 Poundland Discount retailer

510 Mar 10

24 InchcapeSh�pp�ngServ�ces Film manufacturer

322 Dec 09

79 Innov�aF�lms Film manufacturer

308 Dec 09

98 TJHughes Department store operator

267 Jan 10

83 Dreams Bed retailer

244 Dec 09

�compan�esw�ththeb�ggestsales

3

260 - 70%

50 - 60%

40 - 50%

30 - 40%

20 - 30%

10 - 20%

5 - 10%

0 10 20 30 40 50 60

EBITDAmarg�nsonma�ntable

Number of companies in each EBITDA margin range

7

2

13

51

22

Jim McCarthy, chief executvie of Poundland (No 46); the biggest company on the league table in terms of sales and staff numbers.



Staffandjobcreat�onCompanies employed a total of 90,916 staff in their latest year, resulting in average EBITDA per employee of £14,958, a slight decrease of £48 compared to last year’s league table.

Staff numbers have increased by 16,205 over the past two years; however, not all of these are new jobs as some are a result of acquisitions. For example IT services provider Kelway (No 16) has made four significant acquisitions since 2006 as part of a buy-and-build strategy backed by Core Capital, more than doubling its workforce to 355.

The biggest employers on the league table are discount retailer Poundland (No 46, backed by Warburg Pincus) with 6,700 employees, and marine services provider Inchcape Shipping Services (No 24, backed by Istithmar World Capital), employing more than 3,500 staff in 66 territories.

32 companies employ more than 1,000 staff.

26 companies employ fewer than 250 staff. The company with the fewest staff is wireless tower operator Wireless Infrastructure Group (No 74, backed by RBS and Penta Capital) with 29 employees and EBITDA of £10.8m. It recorded the highest EBITDA per employee of £372,900 per head.

DebtAverage debts of £56m are four times EBITDA. The companies with the highest debt relative to EBITDA in their latest filed accounts were university accommodation provider UPP (No 22, backed by Barclays Infrastructure Funds) with a multiple of 19, and telecoms services provider Azzurri Communications (No 94, backed by Silverfleet Capital) showing a multiple of 18.

League table companies have combined debts of £5.6bn. Seven reported more than £200m of debt in their latest filed accounts, including specialist healthcare provider Castlebeck (No 72, backed by Lydian Capital Partners) with £428m of debt, and film manufacturer Innovia Films (No 79, backed by Candover) carrying £303m of debt.

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1>5,000

1,501-5,000

1,001-1,500

501-1,000

251-500

<=250

0 5 10 15 20 25 30

Numberofemployees

Number of companies in each staff range

13

21

21

26

10

7>£200m

£100m-£200m

£50m-£100m

£25m-£50m

£10m-£25m

<£10m

0 5 10 15 20 25 30

Debt

Number of companies in each debt range

15

16

20

32

9

2>15x

10x-15x

5x-10x

1x-5x

<1x

0 10 20 30 40 50

Debtrelat�vetoprof�ts

Number of companies in each debt multiple range

17

42

30



Pr�vateequ�tyhousebreakdown77 private equity houses have investee companies on the league table. LDC, the private equity arm of Lloyds Banking Group, has 10 portfolio companies on the league table, the same number as it had last year. Half of LDC's investee companies on the league table are less than 50% shareholdings.

To appear on the league table, companies have to be at least 20% owned by private equity. 27 companies are still majority-owned by founders or management, including GO Outdoors (No 2, backed by YFM Group) which is 77% owned by management, and 99p Stores (No 84, backed by Barclays Ventures) which is 51% owned by the founding Lalani family.

12 companies are backed by multiple private equity owners. For example, National Accident Helpline (No 76) is owned 30% by LDC and 30% by Inflexion Private Equity.

Dealtypebreakdown54 companies appear following a primary deal where the acquired business has been bought for the first time from a trade seller or the company's founder. A total of 41 have been transferred between private equity houses in secondary (32), tertiary (7) or quartertiary (2) deals.

There were five public-to-private deals including fleet management software provider Trafficmaster (No 100), which Vector Capital delisted from the LSE main market for £87m in June 2010.

Dealact�v�ty27 companies on this year's league table have been the subject of private equity buyouts since the beginning of 2010. On last year's league table, the comparative number was 10.

One company featured on last year's league table has gone on to float, compared to none the previous year. Apax-backed Promethean listed on the LSE with a market capitalisation of £396m in March, but its share price subsequently under performed.

There were 12 other exits from last year's league table, compared to three last year. Half were trade sales, including Lion Capital's sale of Kettle Foods to US listed group Diamond Foods for $615m. Four were exited in secondary deals, including Webfusion which Oakley Capital sold to Montagu Private Equity for £222m. RJD Partners exited Teaching Personnel in a £45m tertiary deal with Graphite Capital, and Kcaj sold its stake in Mountain Warehouse for an undisclosed amount in a quartertiary deal backed by LDC.

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Pr�vateequ�tyhouses

The 21 private equity houses with two or more investee companies on league table

Dealtype

Number of companies

0 15 30 45 60

Public-to-private 5

Quartertiary 2

Tertiary 7

Secondary 32

Primary 54

0 20 40 60

Tertiary

61%

Secondary

60%

45%

Public-to-private

Primary

49%

Pr�vateequ�tyhouseNoof�nvesteecompan�es

LDC 10

Barclays Private Equity 4

Bowmark Capital 4

Inflexion Private Equity 4

Duke Street Capital 3

Silverfleet Capital 3

3i 2

August Equity 2

Bregal Capital 2

Bridgepoint 2

Caird Capital 2

Charterhouse 2

Graphite Capital 2

Growth Capital Partners 2

Phoenix Equity Partners 2

Primary Capital 2

Sovereign Capital 2

TA Associates 2

Vision Capital 2

Vitruvian Partners 2

Warburg Pincus 2



Sectorbreakdown

Services 51

Retail 28

Manufacturing 15

Wholesale 3

Construction 3

TMT 14

Consumer (inc retail) 31

THL (travel, hospitality, leisure) 7

EIU (energy, infrastructure, utilities) 4

Financial services 5

Business services 14

Real estate (inc construction) 5

Life sciences, healthcare 10

Industrybreakdown

SectorbreakdownThe two largest sectors are services, with 51 companies, and retail with 28.

Serv�ce(51) businesses encompass a wide range of industries from business travel agencies, such as financial services provider ATP International (No 42, backed by Barclays Private Equity) to financial data provider Data Explorers (No 27, backed by Bowmark Capital). The service sector represents combined profits of £633m and employs 34,748 staff.

Reta�lers (28) include fashion chains such as Jack Wills (No 36, backed by Inflexion), discount retailers such as 99p Stores (No 84, backed by Barclays Ventures) and sports and outdoors stores including Evans Cycles (No 4, backed by Active Private Equity). The retail sector represents combined profits of £387m and employs 38,682 staff.

Manufacturers (15) include safety and survival equipment maker Survitec (No 55, backed by Warburg Pincus) and yacht builder Oyster Marine (No 88, backed by Balmoral Capital). The manufacturing sector represents combined profits of £238m and employs 10,018 staff.

Wholesalers (3) include office equipment supplier Danwood Group (No 91, backed by Bregal Capital). The wholesale sector represents combined profits of £34m and employs 4,593 staff.

Construct�on (3) companies include home improvements products provider Anglian Group (No 93, backed by a consortium including Barclays) best-known for its double-glazed windows, and contractor United House Group (No 9, backed by LDC) which focuses on social housing developments. The construction sector represents combined profits of £67m and employs 2,875 staff.

IndustrybreakdownThe top industry, representing nearly a third of the league table, is consumer-related. 31 companies fall into this category, including shoe retailer Office (No 39, backed by Silverfleet Capital) and child car seat maker Britax Childcare (No 41, backed by Nordic Capital). Consumer-related represents combined EBITDA of £449m and employs 45,967 people.

The bus�nessserv�ces industry provides a further 14 companies, including training services provider JHP Group (No 33, backed by LDC) and vehicle leasing services provider Zenith Provecta (No 73, backed by Morgan Stanley Private Equity). Business services represents combined EBITDA of £159m and employs 10,821 staff.

Technology,med�aandtelecommun�cat�ons(TMT)accounts for 14 companies, including telecoms network operator Gamma Telecom (No 30, backed by Kerry Group), and IT services provider Kelway (No 16, backed by Core Capital). TMT represents combined EBITDA of £157m and employs 6,127 people.

The l�fesc�encesandhealthcareindustry provides ten companies, including drug manufacturer Aesica Pharmaceuticals (No 3, backed by LDC) and specialist healthcare provider Castlebeck (No 72, backed by Lydian Capital Partners). Life sciences and healthcare has combined EBITDA of £155m and employs 10,046 people.

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Manufacturing 10



Reg�onalbreakdownLondon is home to the highest proportion of Buyout Track 100 companies, with more than a quarter of the companies (27) on this year’s league table headquartered here.

The next highest is the Southeast, with 21 companies.

Newcompan�esThere are 48 new entrants on the league table, including bicycle retailer Evans Cycles (No 4, backed by Active Private Equity), lifestyle retailer Cath Kidston (No 18, backed by TA Associates) and restaurant operator Las Iguanas (No 51, backed by Bowmark Capital).

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Southeast

Northeast

Midlands

Northwest

East

Scotland

Southwest

Wales

Northern Ireland

0 5 10 15 20 25 30

Reg�onalbreakdown

Number of companies in each region

13

27

6

5

21

8

4

2

Eren Ali, founder of Las Iguanas (No 51), backed by Bowmark Capital.

13

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Buyout Track 100 Research Report 2011 �0

Compan�esappear�ngforatleastthreeconsecut�veyears

CompanyActivity

Currentbacker Rank 2011 Rank 2010 Rank 2009 Rank 2008 Rank 2007

Tanger�neConfect�oneryConfectionery maker

Growth Capital Partners 20 47 40

OfficeShoe retailer

Silverfleet Capital 39 93 81 82

T�nopol�sFilm and television producer

Vitruvian Partners 40 51 38

Nat�onalFoster�ngAgencyFoster care agency

Sovereign Capital 56 66 90

WoodMackenz�eEnergy research consultancy

Charterhouse 63 69 67 19 12

EICIntegrated building services provider

MML Capital 65 43 14

CastlebeckSpecialist healthcare provider

Lydian Capital Partners 72 67 63 61 68

DunlopA�rcraftTyresAircraft tyre manufacturer

AAC Capital Partners 75 87 35

Nat�onalAcc�dentHelpl�neLegal services marketing agency

LDC, Inflexion Capital 76 96 92 54

YO!Sush�Japanese restaurant operator

Quilvest Private Equity 82 100 61

DreamsBed retailer

Exponent 83 82 24

Susta�nedgrowth37 companies appear on the league table for their second consecutive year, eleven make their third appearance. Three make their fourth consecutive appearance. Two companies, energy research consultancy Wood Mackenzie (No 63, backed by Charterhouse) and specialist healthcare provider Castlebeck (No 72, backed by Lydian Capital Partners) have appeared on all five Buyout Track 100 league tables.

An additional 15 companies make re-entries, having appeared in a Buyout Track 100 league table prior to 2010.

The table below shows the eleven companies that have appeared at least three years in a row.

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Buyout Track 100 Research Report 2011 ��

KEYTHEMES

The research highlights a number of themes which characterise both the kinds of companies achieving success on this year’s league table and the current economic environment for private equity-backed businesses:

Increaseddealact�v�ty: An increase in deal activity meant that 27 of the companies on the league table had private equity investment in the last year, compared with 10 on the 2010 Buyout Track 100.

Outsourcedpubl�cserv�ces: 15 companies on the league table provide services to the public sector. They include ten healthcare providers and two education operators.

Growthbyacqu�s�t�on: At least 25 companies on the league table have grown profits through acquisition.

Counter-cycl�calbus�nesses: 15 of the companies can be considered to be counter-cyclical, such as discount retailers and debt collectors.

Well-knownbrands: household names that feature on the league table include Cath Kidston (No 18) which is making its Buyout Track 100 debut, Jack Wills (No 36) which makes its second appearance, and YO! Sushi (No 82), making its third consecutive appearance on the league table.

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Fashion retailer Jack Wills (No 36), backed by Inflexion, appears on the league table for a second time.



3� Off�ceShoe retailer

Main shareholders: Silverfleet Capital (95%), Brian McCluskey (5%)

CAGR§ 45.00% EBITDA 2010 £18.4m*EBITDA 2008 £8.7mSales 2010 £142.9m*Staff 1,748Location Central London

From Ugg boots to kitten heels and Converse trainers, Office sells footwear from 74 shops and 42 concessions in Britain, as well as from a concession in Top Shop’s New York outlet. The company opened its doors in 1981, when husband and wife David and Liz Casey furnished their first London shop with old office furniture and named it Office London. The Caseys sold the business to Sir Tom Hunter’s West Coast Capital for £15m in 2003, before Silverfleet Capital acquired the business for a reported £140m in December 2010.

46 PoundlandDiscount retailer

Main shareholders: Warburg Pincus (76%), management (24%)

CAGR§ 40.02% EBITDA 2010 £30.1mEBITDA 2008 £15.3mSales 2010 £510mStaff 6,702Location West Midlands

Poundland has almost doubled its number of stores to more than 300 over the past three years. It plans to open a further 50 in the year to March 2011, and says the scale of the business is helping profit growth thanks to improved buying power. The company sells more than 3,000 products, including food, household goods and DIY products, all priced at £1. Warburg Pincus backed a £200m secondary buyout from Advent International in June 2010.

�7 DebGroupSkincare product maker

Main shareholders: Charterhouse (80%), management (20%)

CAGR§ 34.43% EBITDA 2009 £35.5mEBITDA 2007 £19.7mSales 2009 £140.1mStaff 688Location Derbyshire

The hands of employees all over the world are cleaner thanks to Deb Group. Best known for its Swarfega hand cleanser, it also supplies a range of other skincare products to companies in the industrial, commercial, healthcare and food sectors. The company was founded in Derbyshire in 1941 and now has subsidiaries in 14 countries. Charterhouse Capital Partners backed a £325m secondary buyout from Barclays Private Equity in March 2010, taking a 80% stake.

SELECTEDCOMPANYPROFILES

Increaseddealact�v�ty

27 league table companies received new private equity investors in the last year. This is an increase from 10 from last year's league table, demonstrating a recovery in confidence and better availability of funding. Nine of the deals in the last year were primary buyouts, 17 were transferred between private equity houses, and Vector Capital delisted fleet management software provider Trafficmaster (No 100) for £87m. Three of the deals from last year are highlighted below.

§ compound annual growth rate between 2007/08 and 2009/10 * annualised figure † accounts not filed at Companies House

Office (No 39) is backed by Silverfleet Capital.



�2 L�fewaysCommun�tyCareCommunity care provider

Main shareholders: August Equity (78%), management (22%)

CAGR§ 76.83% EBITDA 2010 £7mEBITDA 2008 £2.2mSales 2010 £57.9mStaff 3,009Location South London

Lifeways Community Care provides supported living services for 1,500 people with complex care needs, including learning disabilities and autism. The London-based company has offices throughout Britain and care contracts with more than 60 local authorities and primary care trusts. In 2007 August Equity backed a buyout for an undisclosed sum and installed Paul Marriner, a qualified nurse, as chief executive. Following a buy and build strategy, the company has acquired four businesses in the last two years.

6� CastleCareYouth care homes operator

Main shareholders: Baird Capital Partners (72%), management (26%)

CAGR§ 29.64% EBITDA 2009 £3.4mEBITDA 2007 £2mSales 2009 £20.2mStaff 456Location Northants

CastleCare is a provider of education, residential care and treatment programmes for children and young people. The Northamptonshire company runs more than forty homes and schools across England and Wales for children with social, behavioural or special needs. Baird Capital Partners backed a £22m management buyout in 2004 and the business bought competitor Sovereign Care the following year for an undisclosed amount.

�� Teach�ngPersonnelSupply teacher recruiter

Main shareholders: Graphite Capital (64.5%), management (35.5%)

CAGR§ 26.37% EBITDA 2009 £5.7mEBITDA 2007 £3.6mSales 2009 £46.3mStaff 192Location Hertfordshire

Teaching Personnel supplies temporary staff to 4,000 primary, secondary and special needs schools in England and Wales. Based in Welwyn Garden City, the business was founded in 1996 and now has 32 regional branches. The company provides supply teachers to state and independent schools and also recruits teaching assistants, nursery nurses and special-needs teachers for both short and long term. Graphite Capital backed the £45m tertiary buyout from RJD Partners in July 2010.

Outsourcedpubl�cserv�ces

15 companies provide services to the public sector, operating mainly in the healthcare and education sectors. Growth by acquisition is a particularly strong theme among these companies, with a third of the businesses having acquired competitors. Examples of companies providing services to the public sector on the league table include National Fostering Agency (No 56, backed by Sovereign Capital) and specialist healthcare provider Castlebeck (No 72, backed by Lydian Capital Partners), as well as those listed below.


Lifeways Community Care (No 12) is backed by August Equity.



�6 KelwayIT services provider

Main shareholders: Core Capital (25%), management and staff (75%)

CAGR§ 67.25% EBITDA 2010 £8.4mEBITDA 2008 £3mSales 2010 £178.1mStaff 355Location Central London

Kelway sells computer software and hardware, as well as offering consultancy services on data-centre setup, network design and training. Founded in 1990 by chief executive Phil Doye at the age of 21, the company now has more than 2,000 clients including Microsoft, Bank of America and Oxford University Press. In 2006, Core Capital invested £5m for a 25% stake which has been used to make four acquisitions for its buy-and-build strategy, including the acquisition of competitor Repton in June 2009 for an undisclosed amount.

37 Eng�neGroupMarketing agency

Main shareholders: HIG Capital (38%), management and staff (47%), institutional shareholders (15%)

CAGR§ 47.98% EBITDA 2009 £13mEBITDA 2007 £6m*Sales 2009 £59.1mStaff 540Location Central London

This marketing group consists of 10 different partner companies providing a range of services from direct marketing and sponsorship to social media and digital marketing. In October 2010 HIG Capital invested £32.5m in the London company, giving it a 38% stake. Profit growth has been helped by a number of acquisitions in 2007 and 2008, and in October 2010, the business made its first acquisition overseas, buying the American digital agency Deep Focus.

�� Surv�tecSurvival equipment maker

Main shareholders: Warburg Pincus, management

CAGR§ 35.32% EBITDA 2010 £34.8mEBITDA 2008 £19mSales 2010 £162mStaff 1,270Location Belfast

Survitec provides safety and survival equipment to the marine, defence, aviation and oil and gas sectors. It makes life rafts, life jackets, submarine escape suits, and anti-gravity and survival suits for customers including P&O, BP, Thompson Airways, the US Navy and Westland Helicopters. Warburg Pincus backed a secondary buyout in January 2010 for £280m which should help fund the company's buy-and-build strategy. Its latest acquistion, Seaweather Marine and Aviation Services, completed in September 2010.

Growthbyacqu�s�t�on

Companies growing through acquisition once again feature heavily on this year's league table, with at least 25 reporting that acquisitions have helped grow profits. Some, such as Lifeways Community Care (No 12, backed by August Equity) have grown through buy-and-build strategies. Others have acquired competitors, including Tangerine Confectionery (No 20, backed by Growth Capital Partners) which bought underperforming divisions from Burton Foods and Cadbury.


Weathering the storm: Survitec (No 55) is backed by Warburg Pincus.



�� ApexCred�tManagementDebt purchaser

Main shareholders: Anacap Financial Partners (100%)

CAGR§ 33.9% EBITDA 2010 £3.6mEBITDA 2008 £2mSales 2010 £24mStaff 195Location Warwickshire

Established in 2000, this company specialises in providing outsourced debt collection, tracing absent debtors, and recovering portfolios of debt bought from financial institutions. It works with banks such as RBS and Lloyds Banking Group, as well as major credit card and motor finance houses. In 2007, AnaCap Financial Partners backed a buy-in management buyout for an undisclosed sum from credit management company BCW.

�4 ��pStoresDiscount retailer

Main shareholders: Lalani family (51%), Barclays Ventures (25%), other (24%)

CAGR§ 25.31% EBITDA 2010 £4.5mEBITDA 2008 £2.9mSales 2010 £183.5mStaff 2,156Location Northampton

Nadir Lalani opened the first of his 99p Stores in London in 2001, and now operates 137 outlets nationwide after picking up 67 former Woolworth shops to date. True to its name, the single price retailer sells everything at 99p, and the company has recently launched Family Bargains, a new budget retail chain not constrained by the 99p price tag. Barclays Ventures owns a 25% stake after making investments in the business in 2004 and 2006.

�6 AndrewPageVehicle component distributor

Main shareholders: Phoenix Equity Partners (>50%), management (<50%)

CAGR§ 25.24% EBITDA 2010 £13mEBITDA 2008 £8.3mSales 2010 £111.5mStaff 1,168Location Leeds

Andrew Page claims to be one of the largest independent distributors of car parts and workshop tools in Britain. The company says the recession has helped sales because more people are repairing their cars rather than buying new ones. Founded in 1946, it has expanded to more than 50 branches. The founder’s family retains a significant stake and Andrew Page remains on the board. Phoenix Equity Partners backed a £102m buyout in March 2010, taking a majority stake.

Counter-cycl�calbus�nesses

Companies operating in counter-cyclical sectors are well represented on the league table, with a total of 15 companies. This includes four discount retailers such as Poundland (No 46, backed by Warburg Pincus) and 99p Stores (No 84, backed by Barclays Ventures), and two debt collectors: Marlin Financial Group (No 15, backed by Duke Street Capital) and Apex Credit Management (No 59, backed by Anacap Financial Partners).


Andrew Page (No 86), backed by Phoenix Equity Partners, has driven through the downturn growing sales and profits.



Well-knownbrands

Household names that feature on the league table are predominantly consumer-facing businesses such as retailers and leisure operators such as Go Outdoors (No 2, backed by YFM Group), Poundland (No 46, backed by Warburg Pincus) and Yo! Sushi (No 82, backed by Quilvest Private Equity), in addition to the ones below; including the number one company, Lovefilm.com.

� Lovef�lm.comOnline DVD rental provider

Main shareholders: Private equity consortium (38%), Amazon (45%), founders and business angels and others (14%), management (3%)

CAGR§ 283.72% EBITDA 2009 £16mEBITDA 2007 £1.1mSales 2009 £97.2mStaff 427Location West London

Lovefilm.com is one of Europe's leading film subscription services offering more than 70,000 movies to its 1.4m members across Britain, Sweden, Norway, Denmark and Germany. In 2008, it bought Amazon.com's European DVD rental businesses in Britain and Germany for an undisclosed sum with Amazon taking a significant minority stake. In January the company announced that an agreement had been reached for Amazon to acquire it outright. The deal, which is thought to value the business at around £200m, is subject to regulatory approval, and is expected to complete later in the first quarter of 2011.

�� CathK�dstonLifestyle retailer

Main shareholders: TA Associates (62%), Cath Kidston (21%), management (17%)

CAGR§ 66.56% EBITDA 2010 £8.8mEBITDA 2008 £3.2mSales 2010 £50.4mStaff 383Location Central London

Cath Kidston set up her Notting Hill shop in 1993 selling antique furniture and fabrics, becoming a hit with her largely female clientele when she designed a homeware range. Distinctively decorated with floral prints, the items have tapped into the 'modern vintage' trend, and can be seen on items from key rings to Apple iPhone covers. TA Associates backed a majority buyout in March which valued the company at £100m.

36 JackW�llsFashion retailer

Main shareholders: Inflexion Private Equity (27%), management (73%)

CAGR§ 47.98% EBITDA 2010 £10.2mEBITDA 2008 £4.6mSales 2010 £64.8mStaff 1,286Location Northwest London

Targeting affluent university towns, Jack Wills now has 45 shops in Britain, Ireland and America. The company sells casual, preppy clothes aimed at 18-21 year olds, as well as a range for more mature customers sold through its Aubin and Wills brand. It puts growth down to the quality of its clothes, geographical expansion and marketing. The company was founded in 1999 by university friends Peter Williams and Rob Shaw, and in 2007 Inflexion purchased a 27% stake for an undisclosed sum.

Simon Calver, chief executive of Lovefilm.com (No 1), backed by a private equity consortium including Balderton Capital.




20��BUYOUTTRACK�00LEAGUETABLE

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1 3 Lovefilm.comOnline DVD rental provider

West London Dec 09 283.72% 15,961 1,084 97,170 427 Private equity consortium (38%), Amazon (45%), management and others (17%)

2 40 GOOutdoorsOutdoor equipment retailer

Sheffield Jan 10 114.04% *6,617 1,444 *74,005 497 YFM Group (21%), management (79%)

3 50 Aes�caPharmaceut�calsPharmaceuticals manufacturer

Newcastle Dec 09 105.74% 14,700 *3,473 84,600 615 LDC (60%), management (40%)

4 EvansCyclesBicycle retailer

West Sussex Oct 09 103.83% 6,054 1,457 72,969 715 Active Private Equity (70%), management and others (30%)

5 CelerantConsult�ngOperational management consultancy

Richmond Dec 09 100.31% 7,483 1,865 122,729 571 Management (53%), Caledonia Investments (47%)

6 XLNTelecomTelecoms services provider

Central London Mar 10 100.11% 11,572 2,890 54,862 153 ECI Partners (>50%), management (<50%)

7 HellermannTytonCable manufacturer

Manchester Dec 09 90.77% 7,435 2,043 37,753 427 Doughty Hanson (100%)

8 Actur�sSoftware services provider

Central London Sep 09 88.24% 5,750 1,623 14,083 110 Management (<80%), Summit Partners (>20%)

9 Un�tedHouseGroupBuilding contractor

Kent Dec 09 86.71% 11,169 3,204 159,645 466 Management (60%), LDC (40%)

10 DWSBodyworksCar repairer

Essex Sep 09 84.13% 4,135 *1,220 36,755 379 Risk Capital Partners (60%), management (40%)

11 1 Skr�llOnline payment provider

Central London Dec 09 81.73% 18,956 5,740 42,655 317 Investcorp (51%), founders and management (49%)

12 32 L�fewaysCommun�tyCareCommunity care provider

Southwest London May 10 76.83% 6,983 *2,233 57,875 3,009 August Equity (78%), management (22%)

13 29 Ach�llesGroupProcurement consultancy

Abingdon Apr 10 74.00% 10,636 3,513 37,979 579 HgCapital (69%), management (31%)

14 QuantumPharmaceut�calPharmaceutical manufacturer

County Durham Jan 10 73.98% 7,328 2,421 29,983 180 Management (52.5%), LDC (47.5%)

15 Marl�nF�nanc�alGroupDebt purchaser

West Sussex Dec 09 70.09% 6,706 2,318 11,542 68 Duke Street Capital (58%), management (42%)

16 46 KelwayIT services provider

Central London Mar 10 67.25% 8,408 3,006 178,140 355 Core Capital (25%), management and staff (75%)

17 63 R�xonwayKitchen maker

West Yorkshire Feb 10 67.21% 5,113 1,829 28,811 430 August Equity (60%), management (40%)

18 CathK�dstonLifestyle retailer

Central London Mar 10 66.56% 8,785 3,167 50,369 383 TA Associates (62%), Cath Kidston (21%), management (17%)

19 NexusIndustr�esElectrical products supplier

Telford Dec 09 66.28% 4,075 1,474 44,537 248 Management (50.1%), EPIC Investments (49.9%)

20 47 Tanger�neConfect�oneryConfectionery maker

Blackpool Dec 09 65.14% 13,109 4,807 154,549 1,343 Growth Capital Partners (41%), management (40%), Appleby Trust (14%), Toms Gruppen (5%)

21 WorldmarkIdentification systems developer

Lanarkshire Dec 09 65.11% 13,432 4,927 73,051 1,413 Barclays Private Equity (70%), management (30%)

22 5 UPPUniversity accommodation provider

Central London Aug 10 63.20% †41,585 15,614 †84,219 353 Barclays Infrastructure Funds (100%)

23 DCKJewellery retailer

Essex Jan 10 60.56% 19,560 7,587 190,498 1,953 Caird Capital (20%), management and others (80%)

24 44 InchcapeSh�pp�ngServ�cesMarine services provider

Essex Dec 09 58.97% 41,546 16,440 322,114 3,568 Istithmar World Capital (85%), management and staff (15%)

25 A�mAv�at�onAircraft interior designer

Bournemouth Apr 10 58.41% †13,300 5,300 †69,200 800 LDC (>50%), management (<50%)





26 BountyPregnancy and parenting club

Welwyn Garden City

Dec 09 56.69% 8,289 3,376 30,292 688 Barclays Private Equity (63%), management (37%)

27 DataExplorersFinancial data provider

Central London Jun 10 55.98% †4,825 *1,983 †17,490 100 Bowmark Capital (51%), management (49%)

28 Thompson&MorganGarden seed supplier

Ipswich Jun 10 55.57% 3,899 1,611 40,602 294 Primary Capital (52%), management (48%)

29 QuantelBroadcasting technology provider

Newbury Sep 09 54.61% 4,480 1,874 39,093 243 LDC (55%), management and staff (45%)

30 GammaTelecomTelecoms network operator

Newbury Dec 09 54.49% 6,540 2,740 141,292 263 Kerry Group (46%), Michael Stone (24%), Sofaer Capital (21%), other (9%)

31 11 Cogn�taSchools operator

Milton Keynes Aug 09 54.40% 26,632 11,171 138,618 2,937 Bregal Capital (81%), management (19%)

32 49 W�ggleOnline sports goods retailer

Portsmouth Jan 10 52.90% 7,402 3,166 55,597 92 ISIS Equity Partners (48%), management (52%)

33 JHPGroupTraining services provider

Coventry Jul 10 51.87% †10,158 4,404 †62,642 1,400 LDC (78%), management (22%)

34 ThomsonsOnl�neBenefitsEmployee benefits software developer

Central London Dec 09 50.45% 3,434 1,517 16,319 132 Pi Capital (48%), Michael Whitfield (29%), Chris Bruce (23%)

35 HobbyCraftGroupCraft goods retailer

Dorset Feb 10 48.97% 12,155 5,477 84,366 1,538 Bridgepoint (>50%), management and others (<50%)

36 22 JackW�llsFashion retailer

Northwest London Jan 10 47.98% 10,156 4,638 64,764 1,286 Inflexion Private Equity (27%), management (73%)

37 Eng�neGroupMarketing agency

Central London Dec 09 47.98% 13,038 5,954 59,102 540 HIG Capital (38%), management and staff (47%), institutional shareholders (15%)

38 74 FDMGroupIT services provider

Brighton Dec 10 46.39% †11,277 5,262 †83,736 784 Inflexion Private Equity (61.5%), management (38.5%)

39 93 OfficeShoe retailer

Central London Jan 10 45.00% *18,388 8,746 *142,923 1,748 Silverfleet Capital (95%), Brian McCluskey (5%)

40 51 T�nopol�sFilm and television producer

South Wales Sep 09 44.28% 6,926 3,327 65,750 389 Vitruvian Partners (70%), management (30%)

41 Br�taxCh�ldcareChild car seat maker

Surrey Dec 09 44.14% 36,161 17,405 202,872 1,010 Nordic Capital (majority), management (minority)

42 ATPInternat�onalBusiness travel agency

Central London Dec 09 43.99% 15,731 *7,587 74,606 1,040 Barclays Private Equity (60%), management (40%)

43 99 AttendaIT services provider

West London Dec 09 43.67% 5,668 2,746 33,186 209 M/C Venture Partners & Phoenix Equity Partners (52%), management (48%)

44 CPLIndustr�esSolid fuels supplier

Chesterfield Mar 10 40.74% 20,600 10,400 132,800 549 Royal Bank of Scotland (46%), Vision Capital (39%), current and former management (15%)

45 23 Mounta�nWarehouseOutdoor clothing retailer

Central London Feb 10 40.39% 9,038 *4,585 47,534 654 Management (>50%), LDC (<50%)

46 92 PoundlandDiscount retailer

West Midlands Mar 10 40.02% 30,053 15,328 509,791 6,702 Warburg Pincus (76%), management (24%)

47 Adel�eFoodFood producer and distributor

Milton Keynes Oct 09 39.97% *12,804 6,535 *231,270 3,248 Duke Street Capital (>50%), management (<50%)

48 Republ�cFashion retailer

Leeds Jan 10 39.73% 33,588 17,202 173,302 2,459 Texas Pacific Group (>50%), management (<50%)

49 LGCAnalytical services laboratory

Southwest London Mar 10 38.85% 20,731 10,753 123,569 1,332 Bridgepoint (>50%), management (<50%)

50 A-GasInternat�onalChemicals and gases distributor

Bristol Dec 10 38.51% †10,300 5,369 †52,000 130 Growth Capital Partners (40%), management (60%)

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51 LasIguanasRestaurant operator

Bristol Mar 10 38.10% 4,050 *2,123 29,753 754 Bowmark Capital (52%), Eren Ali (23%), current and former management (25%)


Cardiff Jun 09 38.08% †43,531 22,831 †60,007 249 Challenger Infrastructure Fund (83%), CFSPC and CFSI Infrastructure Fund (13%), management (4%)

53 41 WeldexCrane hirer

Inverness Nov 09 36.64% 14,277 7,647 27,201 128 Dunedin Capital Partners (58%), McGilvray family (37%), NVM Private Equity (5%)

54 17 Ult�mateProductsHomeware designer and sourcer

Manchester Jul 10 35.91% 6,792 3,677 78,264 231 LDC (46%), management (54%)

55 95 Surv�tecGroupSafety equipment maker

Belfast Mar 10 35.32% 34,814 19,013 161,951 1,270 Warburg Pincus (>20%), management

56 66 Nat�onalFoster�ngAgencyFoster care agency

West London Mar 10 35.00% 10,260 5,630 53,908 200 Sovereign Capital (50%), Edwina Beech (21%), Michael Lovett (21%), other staff (8%)

57 DebGroupSkincare product maker

Derbyshire Dec 09 34.43% 35,534 19,663 140,120 688 Charterhouse (80%), management (20%)

58 DCLe�sureManagementLeisure facility operator

Surrey Mar 10 34.07% 13,648 7,593 103,858 1,871 Sovereign Capital (70%), management (30%)

59 ApexCred�tManagementDebt purchaser

Stratford-upon-Avon

Dec 09 33.90% 3,620 2,019 24,007 195 Anacap Financial Partners (100%)

60 Gr�ffinMar�neTravelMarine travel agency

Central London Dec 09 33.11% 12,673 7,152 24,751 503 Inflexion Private Equity (25%), management (75%)

61 AdaptManaged services provider

Central London Jun 10 32.94% †3,137 1,775 †30,647 85 Private equity consortium (25%), management (75%)

62 2 Callcred�tInformat�onGroupBusiness risk evaluator

Leeds Dec 09 31.75% 11,747 6,767 53,645 642 Vitruvian Partners (>50%), management (<50%)

63 69 WoodMackenz�eEnergy research consultancy

Edinburgh Dec 09 31.42% 48,500 28,080 108,263 700 Charterhouse (77%), management and staff (23%)

64 MandMD�rect.comOnline discount retailer

Herefordshire Feb 10 30.29% 14,299 8,423 107,822 588 TA Associates (78%), management (22%)

65 43 EICBuilding services provider

West Midlands Dec 09 30.11% 7,830 4,625 93,287 617 MML Capital (67%), management (33%)

66 FMGSupportFleet management services provider

Huddersfield Sep 09 29.93% 4,447 2,634 78,757 419 Spirit Capital Partners (40%), N Brown (40%), other management (20%)

67 36 FrozenValueValue food retailer

Barnsley Jan 10 29.78% 3,077 1,827 51,013 830 3i (40%), management (60%)

68 LeadersLett�ngsResidential letting agent

Worthing Mar 10 29.73% 4,146 2,464 24,209 466 Bowmark Capital (71%), management (29%)

69 CastleCareYouth care homes operator

Northamptonshire Dec 09 29.64% 3,419 2,034 20,247 456 Baird Capital Partners (72%), management (26%)

70 RosemontPharmaceut�calsLiquid pharmaceuticals manufacturer

Leeds Dec 09 29.45% 17,971 10,724 37,019 208 CBPE Capital (80%), management (20%)

71 TheOr�g�nalFactoryShopDiscount retailer

Burnley Mar 10 29.19% 14,892 8,923 116,853 2,500 Duke Street Capital (70%), management (30%)

72 67 CastlebeckSpecialist healthcare provider

Darlington Dec 09 28.76% 31,266 *18,857 85,225 1,908 Lydian Capital Partners (80%), management (20%)

73 Zen�thProvectaVehicle leasing services provider

Leeds Mar 10 28.63% 8,888 *5,372 125,387 157 Morgan Stanley Private Equity (60%), management (40%)

74 10 W�relessInfrastructureGroupWireless tower operator

Lanarkshire Dec 09 28.18% 10,815 6,582 17,120 29 Royal Bank of Scotland Special Opportunities Fund (43%), Penta Capital (22%), other investors (35%)

75 87 DunlopA�rcraftTyresAircraft tyre manufacturer

Birmingham Dec 09 27.69% 7,321 4,490 30,727 314 AAC Capital Partners (75%), management (25%)

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76 96 Nat�onalAcc�dentHelpl�neLegal services marketing agency

Northamptonshire Dec 09 26.92% 9,026 5,603 29,028 54 LDC (30%), Inflexion Private Equity (30%), management (40%)

77 C�v�caIT services provider

Southwest London Sep 10 26.90% †28,705 17,826 †170,291 1,548 3i (74%), management (26%)

78 ArthouseHome decoration supplier

Lancashire Dec 09 26.80% 3,564 2,216 20,827 50 Total Capital Partners (43%), management (57%)

79 Innov�aF�lmsFilm manufacturer

Cumbria Dec 09 26.75% 45,573 28,368 307,864 1,376 Candover (84%), management (16%)

80 �2Software developer

Cambridge Dec 09 26.62% 12,833 8,004 27,963 163 Silver Lake Sumeru (70%), York St Capital (6%), Pennant Park (3%), management (3%), others (18%)

81 84 Teach�ngPersonnelSupply teacher recruiter

Welwyn Garden City

Nov 09 26.37% 5,728 3,587 46,337 192 Graphite Capital (64.5%), management (35.5%)

82 100 YO!Sush�Japanese restaurant operator

Central London Nov 09 25.92% 6,361 4,012 41,700 1,149 Quilvest Private Equity (71%), management (29%)

83 82 DreamsBed retailer

High Wycombe Dec 09 25.48% 25,121 15,955 243,570 1,774 Exponent (>50%), management (<50%)

84 ��pStoresDiscount retailer

Northampton Jan 10 25.31% 4,523 2,880 183,472 2,156 Lalani family (51%), Barclays Ventures (25%), other (24%)

85 72 M�croleaseElectronic equipment provider

Northwest London Feb 10 25.26% 13,496 8,601 29,772 120 LDC (71%), management (29%)

86 AndrewPageVehicle component distributor

Leeds May 10 25.24% 13,017 8,299 111,501 1,168 Phoenix Equity Partners (>50%), management (<50%)

87 TobarGroupToy and gift retailer

Suffolk Jun 10 25.00% 3,274 2,095 51,915 488 Primary Capital (50%), management (50%)

88 OysterMar�neYacht builder

Ipswich Dec 09 24.92% 7,414 4,751 53,834 254 Balmoral Capital (99%), management (1%)

89 HotterComfortConceptFootwear retailer

Lancashire Jan 10 24.88% 8,814 5,652 44,456 354 Gresham Private Equity (45%), S Houlgrave (45%), management (10%)

90 M&CEnergyGroupEnergy consultancy

Fife Jun 10 24.77% †3,887 2,497 †25,473 330 Lyceum Capital (66%), management (33%)

91 DanwoodGroupOffice equipment supplier

Lincoln Sep 09 24.69% 17,423 11,207 194,072 1,295 Bregal Capital (40%), management (60%)

92 27 HealthcareHomesCare provider

Essex Sep 09 24.58% 5,787 3,729 28,997 942 Bowmark Capital (80%), management (20%)

93 Angl�anGroupHome improvement products supplier

Norwich Mar 10 24.55% 14,739 9,501 209,228 2,056 Consortium of financial institutions (95%), management (5%)

94 Azzurr�Commun�cat�onsTelecoms services provider

Walsall Jun 10 24.33% †14,452 9,349 †141,056 721 Silverfleet Capital (65%), management (35%)

95 TuffnellsParcelsExpressExpress parcel courier

Sheffield Dec 10 23.81% †11,400 *7,437 †103,100 1,800 Caird Capital (30%), management (70%)

96 Br�ghtHouseHousehold goods retailer

Watford Mar 10 22.07% 34,091 22,879 197,327 1,825 Vision Capital (87%), management (13%)

97 ApogeeCorporat�onDocument handling services provider

Southwest London Dec 09 21.38% 6,125 4,157 32,505 136 Management (71%), LMS Capital (29%)

98 TJHughesDepartment store operator

Liverpool Jan 10 21.38% 12,782 8,676 266,710 4,189 Silverfleet Capital (85%), management (15%)

99 KurtGe�gerShoe retailer

Central London Jan 10 20.57% 14,534 9,998 162,566 1,118 Graphite Capital (<50%), management (>50%)

100 TrafficmasterFleet management software provider

Bedfordshire Dec 09 20.57% 13,621 9,370 57,466 524 Vector Capital (100%)

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Buyout Track 100 Research Report 2011 2�

�0BIGGEST

Breakdown

The 10 Biggest private equity-backed companies must have profits of more than £50m in their latest accounts, and are then ranked by fastest-growing profits over a two-year period.

The top company is pharmaceutical logistics provider Marken, which first appeared on the main Buyout Track 100 league table last year. It was acquired by Apax Partners from Intermediate Capital Group in what, at £975m, was reported as Britain's biggest private equity deal in 2009.

Other companies in the 10 Biggest include R&R Ice Cream, which Oaktree Capital delisted for £182m in 2006, and Terra Firma-backed Infinis, which produces approximately 10% of the UK’s renewable power. Half of the 10 Biggest companies are new to the league table this year.

Large private equity-backed businesses typically carry a great deal of debt. The 10 Biggest hold an average of £700m in debt, which equates to six times EBITDA. Airwave (backed by Macquarie European Infrastructure Fund and Canada Pension Plan) reported the highest debt in its latest filed accounts, with total loans and borrowings of £2bn, which is equal to 10 times EBITDA.

Most of the companies on the 10 Biggest pay considerable amounts in interest (£55m on average), although none paid out more in interest than they took in profit (EBITDA) last year.

Please see the full 10 Biggest league table on the following page.

Infinis, backed by Terra Firma, makes its first appearance on the 10 Biggest.



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1 MarkenPharmaceutical logistics provider West London

Dec 09 101.27% 73,443 *18,131 154,383 360 Apax Partners(67%), management (33%)

Marken transports biological samples, vaccines and clinical trial material around the world for the pharmaceutical industry. The company was founded in 1980 and now has operations in North America, Europe, the Asia Pacific, Latin America, and Africa. Apax Partners backed a £975m tertiary buyout from Intermediate Capital Group in December 2009.

2 Mark�tFinancial information provider Central London

Dec 09 82.56% 116,877 35,067 305,392 1,389 Employees, General Atlantic and other financial institutions

Markit is a global financial information services company which provides independent data, valuations and trade processing services for the over-the-counter markets across asset classes including credit, equities, interest rates, foreign exchange, structured finance, commodities and environmental markets. Financial institutions hold a majority stake. General Atlantic paid a reported $250m for a 7.5% stake in January 2010.

3 3 R&RIceCreamIce cream manufacturer North Yorkshire

Dec 09 69.70% 65,376 22,702 367,601 1,875 Oaktree Capital (83%), management (17%)

R&R operates eight factories across Europe that produce 730m litres of ice cream per annum. It manufactures a broad range of own label ice cream products for several leading European supermarket chains and has manufacturing and distribution agreements with several brand owners, including Nestlé and Mars. Oaktree Capital delisted the group in 2006 for £182m.

4 Infin�sRenewable energy generator Northampton

Mar 10 52.85% 71,770 30,720 143,434 454 Terra Firma Capital Partners (100%)

Infinis is Britain's leading generator of purely renewable power and is also the largest generator for the landfill gas-to-electricity market. It claims to produce approximately 10% of the UK’s renewable power, and about 0.7% of total electricity supply. In 2006, Terra Firma spun Infinis out of WRG, the waste management company it took private for £531m in 2003.

5 7 Sp�reHealthcarePrivate hospital operator Central London

Dec 09 38.41% 150,383 78,500 619,992 6,284 Cinven, management This company says it is the second-biggest operator of private hospitals in Britain. It has 37 hospitals with a total of 1,935 beds. The company was formed in 2007 when Cinven, the private-equity firm, backed the £1.4bn acquisition of 25 former Bupa hospitals.

6 BarchesterHealthcareCare home operator West London

Dec 09 29.03% 50,826 30,528 413,115 14,127 Grove Investments (100%)

Mike Parsons set up this company in 1993 and it now runs more than 200 nursing homes, caring for more than 10,000 people, and offering dementia care and assisted living as well as support for younger people with disabilities. Irish entrepreneurs John Magnier, JP McManus and Dermot Desmond acquired the business in 1994 for an undisclosed amount.

7 VueEnterta�nmentCinema operator West London

Nov 09 24.89% 57,979 37,171 271,952 3,069 Doughty Hanson (73%), management (27%)

Vue's 70 cinemas attract in excess of 37m customers every year and a further 10 sites are expected to open over the next three years. Formed in 2003 when SBC International bought 36 cinemas from Warner Village for £250m, the company was sold to Doughty Hanson in November for a reported £450m including debt.

8 A�rwaveEmergency communications provider Slough

Jun 10 22.33% †192,759 *128,813 †413,227 866 Macquarie European infrastructure fund (50%), Canadian Pension Plan Investment Board (50%)

Airwave's core business is supplying the emergency services with secure digital radio communication systems. In 2007, Macquarie paid Telefonica £1.9 billion for the firm. In 2009, the listed Macquarie fund MCG, which owned 50% of the business, was then acquired by Canada Pension Plan.

9 HarrodsDepartment store operator Central London

Jan 10 21.60% 86,500 58,500 519,800 3,314 Qatar Holding (100%) Harrods says its Knightsbridge site is Britain’s largest shop, selling an array of fashion, food, jewellery, beauty items and luxury goods. Other enterprises within the Harrods brand include property, aircraft sales and a number of smaller outlets in overseas department stores and airports. Qatar Holdings bought Harrods from Mohamed Al-Fayed for a reported £1.5bn last May.

10 Enterpr�seMaintenance services providerLancashire

Dec 09 20.32% 84,400 58,300 1,060,200 8,515 3i (57%), Equiom Trust Company (23%), management and staff (20%)

Enterprise works from more than 150 sites across Britain and Ireland, providing infrastructure maintenance for the likes of the Highways Agency, United Utilities and the MoD. In 2007, 3i backed a £594m public-to-private deal, led by former and current chief executives Owen McLaughlin and Neil Kirkby. Later that year, Enterprise bought its competitor, Accord, for £195m.

Profile


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METHODOLOGY

The Buyout Track 100 league table ranks private equity-backed companies based on their annual growth in profits (EBITDA) over their latest two years of available accounts. EBITDA is the profit measure favoured by private equity houses as it demonstrates cash generation potential. It is defined as operating profit excluding exceptionals, with depreciation and amortisation added back.

Qual�f�cat�oncr�ter�aRegistered in the UK, unquoted and not subsidiaries

EBITDA more than £3m in latest accounts (2009 or 2010)

EBITDA more than £1m in base year accounts (2007 or 2008)

EBITDA in latest year more than EBITDA in penultimate year

Private equity stake of at least 20%

Latest sales of at least £10m (2009 or 2010)

More than 25 trading weeks in the base and final years

Excluded companies include LLPs, pure property and financial trading companies

Companies with latest EBITDA of more than £50m feature in the separate �0B�ggest table with the fastest-growing profits

ResearchapproachThe research was conducted by the Fast Track research team primarily between 1 September 2010 and 1 January 2011. The companies have been interviewed by telephone by the Fast Track research team, and many were visited during the research process.

Companies were selected from a database of about 2m independent private UK companies followed by extensive desk and telephone research. Of the 100 companies, 49 had financial years ending in 2009 and 51 had financial years ending in 2010.

Def�n�t�onofpr�vateequ�tyPrivate equity funds can be based abroad, as long as the portfolio company is UK-based. In addition to standard private equity funds, which are often members of the BVCA, other investors, which act like private equity funds, were also included. Examples are Lydian Capital Partners, the investment vehicle for Irish investors John Magnier, Dermot Desmond, JP McManus and Denis Brosnan, which backs Castlebeck (No 73), and Challenger Infrastructure Fund which backs Inexus (No 53).

D�scla�mersCompanies are not endorsed, guaranteed or recommended by Fast Track or its sponsors. They are not necessarily the best-run companies, but are ranked on historical profit growth.

Private company information can be incomplete and, while every effort is made to include all qualifying companies, there may be omissions. Nominations for next year’s table would be welcome.

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ABOUTTHESPONSORS

Fast Track would particularly like to thank the sponsors of our Buyout Track 100, Deloitte and Lloyds Bank Corporate Markets, for a fifth year, UBS Wealth Management for a second year, and Skillcapital for a first year.

Deloitte is the title sponsor.

With 12,000 people across the UK, Deloitte is renowned for its innovation, collaboration, industry expertise, and outstanding client service. Our depth of talent across our chosen disciplines – audit, tax, consulting and corporate finance – allows us to deliver a total solution to our clients, whatever their size, location or need.

www.delo�tte.co.uk

Lloyds Bank Corporate Markets is a main sponsor.

Lloyds Bank Corporate Markets’ Acquisition Finance team is a leading force in providing leveraged finance in Europe, working in tandem with specialist private equity sponsors. We have supported over 500 private equity transactions in the last five years and have a dedicated team of experienced professionals who can provide you with flexible and innovate debt solutions across a range of countries and industries.

www.lloydsbankcorporatemarkets.com

MarkPac�tt�Head of London Corporate Finance Advisory

JonHerbertHead of acquisition finance Lloyds Bank Corporate Markets

Skillcapital is a main sponsor.

Skillcapital recruits management teams for private equity-backed portfolio companies throughout Europe. We also use our experience and knowledge to help our private equity clients research markets and evaluate potential transactions.

www.sk�llcap�tal.comT�mMacreadyChief executive officer


Buyout Track 100 Research Report 2011 2�

The Sunday Times has been Fast Track's media partner for 14 years.

The Sunday Times is Britain's leading Sunday broadsheet newspaper attracting three million readers every week. It is the leading business newspaper with a business readership of over 500,000, three times more than its nearest rival The Sunday Telegraph.

Dominic O’Connell is the business editor of The Sunday Times. He was previously deputy business editor and has been at the paper since 2001. Before that he was news editor of Sunday Business, having joined the paper at its launch in 1997.

www.thesundayt�mes.co.uk

Dom�n�cO'ConnellBusiness editor

UBS Wealth Management is a main sponsor.

UBS is one of the world’s leading providers of private banking services, and in the UK has more than 250 client advisers who focus on the needs of UK customers. UBS Wealth Management has developed and implemented many innovative wealth management strategies for UK entrepreneurs.

www.ubs.com/ukM�chaelB�shopManaging director, Private Wealth Management



BACKGROUND

Abouttheauthors

SteveBeeverSteve is responsible for managing the Buyout Track 100. He is a chartered accountant and previously worked in Deloitte's Reorganisation Services practice in London. He has a degree in business administration from Cardiff University.

Research support was also provided by Fast Track researchers Adam Jankiewicz, Kate Greasley, Laura Vicary, Lindsay Uppadine and Naomi Colegate.

DrHam�shStevensonHamish owns and runs Fast Track, which he founded in 1997, after securing cornerstone sponsorship from Sir Richard Branson.He works closely with media partners, sponsors and leading entrepreneurs. He holds an associate fellowship at Green Templeton College, Oxford University.

AboutFastTrack

Fast Track 100 is compiled by Fast Track, the UK's leading face-to-face networking events and research company, which focuses on top-performing pr�vate companies and entrepreneurs.

Its annual national awards events and bespoke dinners provide an opportunity for entrepreneurs and directors to network and to meet the sponsors.

Fast Track has compiled league tables on private companies in partnership with TheSundayT�mes for the last fourteen years. It publishes six other annual league table awards programmes:

TechTrack�00 (since 2001) ranks Britain's private technology (TMT) companies with the fastest-growing sales.

FastTrack�00(since 1997) ranks Britain’s private companies with the fastest-growing sales.

Internat�onalTrack�00(since 2010) ranks Britain’s private companies with the fastest-growing international sales.

Prof�tTrack�00(since 2000) ranks Britain’s private companies with the fastest-growing profits.

TopTrack2�0(since 2005) ranks Britain’s leading mid-market private companies with the biggest sales.

TopTrack�00(since 2002) ranks Britain’s private companies with the biggest sales.

Fast Track is based in Oxford with 22 staff, and a network of freelance researchers.



Contactdeta�ls

Fast Track Angel Court 81 St Clements Oxford OX4 1AW

Tel: 01865 297 100 Fax: 01865 297 001

Email: [email protected] Web: www.fasttrack.co.uk

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