Equity Partner for Funding Sought

Opportunity Summary

 

II. Executive Summary

 

Background

GlobalSCS Ltd was incorporated as a Limited Company in England & Wales (No:Respond to this opportunity) on 2nd January 2008.

The initial Registered Head Office was stated as being 1-2 Universal House, Wentworth Street, London, E1 7SA, United Kingdom. In March 2008, the Board took the decision to relocate the Registered Head Office to 27 Pauls Croft, Cricklade, Swindon, Wiltshire, SN6 6AJ, United Kingdom, which is also the private residence of the Managing Director; Ian Franklin.

The Founder of GlobalSCS Ltd is Mr Ian Franklin and he appointed Mrs Karel S. Bishop of 43 Seaton Gardens, Ruislip, Middlesex, HA4 0BA, United Kingdom, as Company Secretary recruited on a 'Freelance' basis. Miss Sian Roberts, Darbys Solicitors, 52 New Inn Hall Street, Oxford, OX1 2DN, UK has been appointed as Company Solicitor. McGills Chartered Accountants of Cirencester, UK, have been retained as the business Accountants, along with JC Accounting Services of Cricklade, UK, who will maintain the general book-keeping services, however, it is intended to employ a full time Bookeeper as soon as is feasible.

GlobalSCS Ltd currently holds a bank account with Halifax Bank, Cirencester, Gloucestershire.

The VAT Registration as issued by HM Customs & Exise isRespond to this opportunity. VAT Registration was applied for on a Voluntary basis as registration is a recognised requirement for Recruitment Consultancies to display on their Terms & Conditions and to charge accordingly.

Statements of Terms & Conditions have been published for client and other purposes.

The next accounts are due on 2nd November 2009 and the next return is due on 30th January 2009. Minimal capital has so far been introduced to the company and all costs to date have been covered from the personal resources of the Managing Director.

The company sought the assistance of Business Inc. Ltd., of Universal House, Wentworth Street, London, E1 7SA, United Kingdom, to register the incorporation and memoranda of GlobalSCS Ltd with Companies House, etc.

A website at Respond to this opportunity has been designed by the senior team at GlobalSCS Ltd and is hosted by 123-Reg Ltd. Ian Franklin is currently the Site Administrator.

Reproduction of any material, including the website is subject to copyright permission from the Board of GlobalSCS Ltd.

GlobalSCS Ltd became GlobalSCS Group Ltd in October 2008.

GlobalSCS Group Ltd has developed a strap line as “Recruitment That Works!”. Along with the logo/brand of GlobalSCS Group Ltd., GlobalSCS Group Ltd intends to use this strapline as a brand-awareness tool. The logo for the company is shown at the front of this report.

Overall, the purpose of GlobalSCS Group Ltd is to provide a complete 360° service tool to businesses and companies, irrespective of their size and location. The 360° element is for the full range of recruitment and headhunting facilities, as well as to have the ability to recruit Consultants and Interim Managers on a contract and sub-contract base. GlobalSCS Group Ltd has developed a relationship with several 'umbrella companies' to enable assistance and protection for tax, IR35, insurance and other reasons.

III. General Company Description

 

Ian Franklin has spent in excess of 22 years within the Recruitment industry both in the UK and overseas, and during that time, he has experienced and seen a variety of methods used by several different Recruitment companies of varying ages, branding and sectors. Due to having experienced so many methodologies, Ian Franklin chose to form a company where he can consolidate many of those methodologies into one system that can ultimately become a benchmark for much of the recruitment profession in the future.

As a result, GlobalSCS Group Ltd has been formed to become a leading Recruiter recognised throughout the UK, Europe and the rest of the world for being innovative and passionate about the industry, as well as “doing it right”!

GlobalSCS Group Ltd, therefore, is a global recruitment consultancy, serving predominantly the supply chain, logistics, transportation, investment banking, stock broking, financial services and pharmaceutical sectors. Combined with that, GlobalSCS Group Ltd will also incorporate a complete Outplacement service to companies that are making staff redundant, career management for individuals and a further service designed to be a Recruitment and HR strategy consultancy to clients, mainly in the UK, US and Western Europe.

The market for supply chain, logistics and transportation is and nearly always, has been fairly lively. Mid and senior level professionals within this sector are often reasonably salaried and packaged, not just within the UK and Europe, but also worldwide. As a result, and because GlobalSCS Group Ltd is an international recruiter, revenues to the business can be quite substantial, bearing in mind the average net ‘mark-up’ that can be charged to the clients. This, therefore, gives the opportunity to specialise in other markets as well, and the major areas that the business does have expertise in is the international Investment Banking and Financial Markets as well as Pharmaceuticals. At the time of writing this report, there are some uncertainties within one or two of the global markets, that have resulted in various major Government ‘rescues’ in both the US and the UK as well as some recent ‘collapses’ of some of the major international financial institutions. However, this scenario does not necessarily reflect on the global macro view of the sector as GlobalSCS Group Ltd is already a Preferred Supplier to a major Australian bank that has a worldwide presence. This particular Client has as yet shown no overt signs of having been affected by economic downturns. Ian Franklin has operated as a Recruiter in three such ‘downturns’ and his experience has proven that Recruiters can be more active at those times.

This will be the case with GlobalSCS Group Ltd, as it is intended that the company will have the facility to undertake full Outplacement and Career Management services for both corporate and private clients alike. When people are in a situation of redundancy, GlobalSCS Group Ltd has the ability to assist those affected with assessing the job market for them, designing their Resumes/CVs, job interview and assessment centre tuition, using and understanding recruiters generally, accessing the unadvertised job markets, using online sites and boards and working with them whilst they apply for different positions. Whilst fees for this type of work may not necessarily be as much as those for recruitment, they still amount to a significant contribution to the total revenue of the business.

So, what has GlobalSCS Group Ltd got that its competitors haven’t?

Skill, experience, knowledge, understanding, empathy, passion, hunger, ability to change and fulfil peoples lives, ability and professionalism. We also have business acumen and understanding, extensive contact base, extensive candidate base, fearless of the negative economic markets, enthusiastic of the positive economic markets, fearless of the competition,

but also knowledge of the competition. Ian Franklin, as stated earlier, has had experience of other Recruitment Consultancies, and the systems and practices that they use. As a result, he has a rare insight into being able to consolidate those systems and practices into a business structure that is user friendly for the GlobalSCS Group Ltd staff as well as time reducing so that staff can continue progressing their revenues, and is also progressive for the company as a whole. At the end of the day, this justifies the GlobalSCS Group Ltd tag-line of ‘Recruitment That Works!’.

There is reasonable and professional competition in all the sectors that GlobalSCS Group Ltd operates in. The competitors in financial markets recruitment are numerous, but most of them tend to work a conveyor belt principle of numerous vacancies and making it a numbers game. This creates imperfections in the system and the advantage that GlobalSCS Group Ltd has is that the business is geographically located away from most of the main players in that marketplace and is as a result, in a position to aim for Preferred Supplier status with some of the larger financial institutions where GlobalSCS Group Ltd are in a position to select the assignments they wish to cover and manage.

With Logistics, supply chain and transportation, however, GlobalSCS Group Ltd is situated in a major geographical part of the UK and Europe that is physically close to many of the major organisations that use the services of an organisation like GlobalSCS Group Ltd. This path works superbly as it gives the staff of GlobalSCS Group Ltd close contact with their clients as well as being recognised by many of those companies as being a serious player within recruitment for the best candidates who can be sourced. That geographical zone in the UK also allows for very fast access to several international airports, major railway stations that also allow access to Eurostar, and many of the nations major road networks. This, of course, helps when accessing international clients and candidates.

GlobalSCS Group Ltd puts both the client and the candidate as equal first in their service priority. Placing equal importance on the candidate is crucial as it is often forgotten by other recruiters that those candidates can themselves, become the client in the future if they hold such a position of responsibility with their employers.

As far as other Supply Chain and logistics recruiters are involved, there are three significant competitors; BiS, George Henderson Ltd and MVP who have a similar philosophy to GlobalSCS Group Ltd, however, all three of them do not tend to operate on as much of a worldwide basis as GobalSCS Group Ltd, or have the flexibility to work in alternative sectors.

IV.Services

 

 

 

Contingency Recruitment:

Contingency Recruitment is a Fee by Results process. Arguably the most common form of recruitment processes and used worldwide by most Recruitment Consultancies, it is a simple, yet lucrative form of methodology. Once the assignment has been agreed with the client, GlobalSCS Group Ltd agrees with the Client the Terms & conditions to be set for the assignment, and the T&C form is signed by both parties. GlobalSCS Group Ltd then accepts the full printed job specification from the client, and begins to source the GlobalSCS Group Ltd database for appropriate candidates. In addition, GlobalSCS Group Ltd advertises on a selection of Job Boards with whom there is an arrangement or account and also may source free and appropriate local media to advertise the role. On receipt of CVs from candidates, GlobalSCS Group Ltd processes them to ensure that all the CVs are logged onto the GlobalSCS Group Ltd database, acknowledged, and sifted. GlobalSCS Group Ltd will then conduct first and short interviews with selected/shortlisted candidates and send decline notices to those not selected. Often a second face to face or telephone interview will take place. A report on each shortlisted candidate will be written up and forwarded with the candidate's CV to the client for them to interview further. Once an offer of employment is made and accepted in writing, GlobalSCS Group Ltd can then invoice the client for the fees due. Contingency Recruitment will account for approximately 60% of the GlobalSCS Group Ltd workload.

 

Search & Selection

Search & Selection, in its earlier form was often referred to as “Headhunting”. The original form of headhunting was for the client to brief the Recruiter by assigning him to persuade one or two named individuals to join their company for a specific job. This is not an easy form of recruitment by any means and assignments can take up to two years to complete, although 2-6 months is more the norm, but fees from the client to the recruiter can reflect this. Search & Selection, however, is a move on from headhunting, to the extent that the client will brief GlobalSCS Group Ltd to source a small selection of the highest calibre and hand picked candidates, irrespective of whether they may or may not be in the job markets. GlobalSCS Group Ltd will thoroughly interview these candidates and write complete submission reports for the clients prior to them conducting their own interviews. Also, GlobalSCS Group Ltd may manage an Assessment Centre and a selection of Psychometric Tests on candidates if the client so requires. The 'Selection' element of 'Search & Selection' can include advertising in the paid media, including the trade press, specialised Job Boards, professional Institutes, and the Broadsheet press. Because, through advertising, the response can be extensive, the role of GlobalSCS Group Ltd would be to lift the pressure of sifting responses from the client and shortlisting accordingly. The fee structure can be significantly different from Contingency Recruitment, on the basis that it is “3-way” One third is paid as a retainer at the start of the assignment, one third is paid as a working fee half way through the assignment, and the remainder, including other costs and expenses, is paid when the successful candidate agrees in writing to accept the offer of employment. Search & selection will account for approximately 15% of the GlobalSCS Group Ltd workload.

 

Interim Management/Consultant Provision

A Consultant designs a solution to a problem, and an Interim Manager delivers that solution. Many recruiters act only as Providers of Interim Managers to clients, however, GlobalSCS Group Ltd will develop, enlarge and retain a database of multi-disciplinary Consultants who can be drawn upon as and when the demand or requirement is there. Interim Managers though, can work as a team with Consultants, on their own or as a collective with other IMs. They can also go into client

companies on a Project Basis, or on a contingency basis; ie. A client may have the very urgent need for a senior level professional to be with them for a defined period of time. Consultants and Interim Managers will, more often or not, have their own Limited Company status for tax and protection reasons. GlobalSCS Group Ltd will in time, include in-house the full back office support required to manage contractor/sub-contractor relationships, but in the meantime, it is likely that this will be outsourced to a specialist company. Fees are charged as a margin of daily rates and will be invoiced to the client on a monthly basis. Consultant/Interim Manager provision will account for about 10% of the GlobalSCS Group Ltd workload.

 

Outplacement/Career Management

Outplacement and Career Management are very similar to each other, except for the fact that Outplacement is paid for by the client company when they are making redundancies and Career Management is paid for by the individual from their own pocket. Both though, include similar areas of activity. For example; this will include CV design, cover letter design, interview techniques and practise, job searches, etc. However, the fees are paid in advance of the assignments commencing. This will account for approximately 10% of the GlobalSCS Group Ltd workload.

Recruitment Strategy/HR Consultancy

Every now and then, there will be a requirement for a senior consultant with GlobalSCS to be placed with a client company for a finite period of time to design a recruitment and hiring strategy for them or to advise on a variety of other HR matters. These will charged at a daily rate and will account for 5% of the GlobalSCS Group Ltd workload.

V. Strategic Direction

 

 

GlobalSCS Group Ltd is, at the time of writing this report, at a situation where it is desperately ready to move to the next level of success. The first stage of the company development has been to design the critical path and strategy development, design of the website and the logo, development of the branding, research of advertising and marketing channels worldwide, research into understanding what the markets are like internationally, developing a system of approaching companies, developing an image of a professional recruitment company to the marketplace, developing the business development systems, developing a candidate resource bank, researching the tools required to operate such a business, costings, contacts with networking organisations worldwide, writing papers and articles on recruitment, bringing on board one or two new Clients and servicing them, identifying the financial resources available, developing the business plan and most important of all; making it all happen!

With the ability to make it all happen and the passion and hunger for total success, GlobalSCS Group Ltd has the advantage to make the business succeed and for it to ultimately become a tier one consultancy, where the brand of GlobalSCS Group Ltd and the logo are going to be recognised as that of being synonymous with the international recruitment industry and recruitment ‘Best Practise‘.

The only barriers that one can identify to progress and expansion, include the occasional delays in receipt of paid-up invoices as often the larger clients will take their time in satisfying invoices. As a result, contingency funding where possible will be developed to cover such situations. On a macro scale, the business will have to observe closely, international geographical areas of political unrest and as a result, be very cautious if the business is in a position to consider assignments from or in those areas. Otherwise, with the branding of GlobalSCS Group Ltd, there are few obstructions that will allow the business to achieve its high demands.

This then reflects in the long term targets. The intention is that when the business is ten years old and the business plan is verified as being on or beyond target, GlobalSCS Group Ltd will be subject to flotation on the UK AIM, which will allow it further recognition, as well as fruitful returns for Ian Franklin and any other shareholders there may be at that time.

All of this will be achievable, and to assist the business to get to that stage, then GlobalSCS Group Ltd seeks assistance from external funding, either by venture capital, equity funding, Joint Venture or commercial loans. But this will be covered later in the report.

Vi. Marketing Plan

 

 

Quite simply, the growth, recognition and reputation of GlobalSCS Group Ltd is in many ways dependant on the way the brand itself is marketed. The simple and uncomplicated, yet memorable GlobalSCS Group Ltd logo as shown on the front page of this paper is such that it will be used to secure the company's status within the marketplace. It is crucial for the business to create a tangible image, as has occurred with other well known brands where the logo is the first port of recognition.

But how is this achieved? Up until the time of writing this paper, all communications with clients, candidates, business development, etc., has used the logo as a focal point with the objective of subliminal recognition. This practise will continue as clients will assimilate recruitment with GlobalSCS Group Ltd as “Hoover” is to vacuum cleaners, “BA” to airlines, “BT” to telecommunications and so on.

There are other ways to market the business, that will include generic advertising in the trade press, advertising positions as described earlier, sponsorship of highly relevant events, mentions and free advertising on-line as well as local press, free trade newspapers, business radio programmes, the recruitment media, letters and e-mails to likely target companies, sponsoring taxi-cabs, buses, etc., and hosting specialist seminars and conferences inviting the likely target companies. GlobalSCS Group Ltd will also display at trade shows and similar events.

A regular newsletter, both hard copy and on-line will be produced, together with article contributions to trade press and banners and power-point presentations.

The result is that with this type of recognition, the work of the GlobalSCS Group Ltd Business Development professionals and the Consultants is made slightly easier than having to justify GlobalSCS Group Ltd to potential clients. Their individual monthly revenues will reflect this. In the experience of Ian Franklin, UK and European Consultants at this level will continually achieve £1800-£2500 monthly as gross revenue in most market conditions. This will result in a steady growth within the business bearing in mind the steady recruitment of Consultants at strategic and opportune times. The Cashflow as stated later shows this and the year on year growth that will be expected from the Consultants and the business as a whole, and the figures also represent plus or minus when global markets fluctuate. The intention is to build up to a £3.5m plus revenue figure by the end of year 5 and for it to continue at such a progressive year on year growth until year 10 when flotation may occur.

VII. Operational Plan

 

 

The next phase of the development of GlobalSCS Group Ltd is to relocate into suitably sized and appropriately, strategically located serviced office space. One location that is being seriously considered is Gloucester, Gloucestershire, UK. This City is regarded as being “prestigious”, combined with its size and location and its access to major road, rail and air networks, makes Gloucester a prime centre for such a business. There are also many full and part serviced office centres in the area that would be ideal for GlobalSCS Group Ltd.

Once the office space has been established. GlobalSCS Group Ltd will immediately recruit at least one Consultant and two Administration Assistants. Inevitably, as with all recruitment businesses, there is a significant administration element that must be controlled, but is accessible to all who will be using it. This is where the Administration Assistant will come in. He/she will be responsible for developing the system, combined with mastering the new recruitment database that GlobalSCS Group Ltd will have to purchase, managing the IT hard and software, close collaboration with the MD, Company Secretary and all of the other financial/legal roles, administration management of the business as a whole and to administer the website with the MD. Eventually the role will become too much for one person, so at that stage, GlobalSCS Group Ltd will recruit a second, but probably at another location in the UK.

GlobalSCS Group Group Ltd has already developed an extensive candidate database from which the business can operate. This will continue to increase and it is the intention of the business to purchase a bespoke on-line database system from which GlobalSCS Group Ltd can operate and for the candidates to be imported to that new database.

VIII. Management & Organisation

 

 

GlobalSCS Group Ltd is managed by Ian Franklin as Managing Director, and Mrs Karel Bishop as Company Secretary (Resumes attached).

It is the intention to increase the number of consultants by a further five by the end of the first year, one Business Development Manager and an Administration Assistant. This will increase by another two Consultants and one further Administrator by the end of Year Two, leading up to a total of nine Consultants by the end of year three and a full compliment of eleven Consultants by the end of Year four. I would expect the rate of staff increase to continue by 10% each year until Year eleven, with a further compliment of two more Business development managers and two further Administrators.

As described earlier, it is the intention to relocate to serviced offices as soon as is possible and to seek further serviced office space in Month Ten in Scotland in order to service the recruitment requirements in Northern United Kingdom.

During the growth of the business, GlobalSCS Group Ltd will begin to 'hold hands' with recruiters internationally so that they may utilise the services and candidates of GlobalSCS Group Ltd in the UK as much as vice versa.

Ian Franklin has been a Professional International Recruiter for over two decades. He has also been at a senior level within several such companies including having been a division principal for the sixth largest headhunting firm in Europe and the US. He has also been called upon to help set up what is now a successful recruitment consultancy for another organisation and is recognised in the UK as being synonymous with the industry. He is also a recognised and applauded expert in Logistics and Transport. Ian Franklin (aged 54) is a graduate of Psychology (Behavioural), and a Member of several professional organisations, associations and institutes that reflect his career. He also has a portfolio of articles and papers that he has written and presented on recruitment, recruitment in transport, recruitment in logistics, international recruitment and generic hiring. He lives with Sarah, his partner, in Wiltshire, United Kingdom. Ian has a few hobbies and interests that include his passion for the industry, cars and driving, wines, food, flying, theatre and good TV drama. His personal philosophies include the following statements:- everything and anything is possible, if you don’t ask - you don’t get, and whilst patience is crucial-determination to conclude is essential.

Karel Bishop is a serial small business Company Secretary. She has been such for over twenty years and as a result has extensive skills and knowledge on company legal and accounting procedures. Karel, as a result, is a true asset to any small business and it is a total advantage to GlobalSCS Group Ltd that she has been retained on a freelance basis to the business.

IX - Start-Up Costs , Financial Plan & Risks

 

 

Between January 2008 and September 2008, the costs have been kept to a minimum. Ian Franklin has researched thoroughly all of the options available to market the name of GlobalSCS Group Ltd Ltd for no cost or minimal cost. There are a plethora of on-line sites where the company has been able to take advantage of advertising and marketing, as well as several hard copy systems. As a result, the costs so far have related purely to designing the website at Respond to this opportunity forming the business legally and other necessary outlay.

However, this has reached its maximum and as a result, further input is required to move the company further and to make it recognised as a fully operational company, with premises and staff. This is the reason for this plan and the forecasts as shown in Appendix Three.

As a brief explanation, the Financial Plan shows the first five years of forecasted trading based on Month one after the equity has been secured.

Year One (after investment) shows a required gross sales turnover of £Respond to this opportunity and a cash surplus of £Respond to this opportunity

Year Two shows a required gross sales turnover cash surplus of £Respond to this opportunity

 

The intention is to continue at this rate of growth until Year Ten when the overall structure of GlobalSCS Group Ltd may change either through AIM.

So there are two main options sought at this stage; I) to source an Equity Partner or ii) a Commercial Loan. The business would suit either option, but if an Equity Partner is found, then the business is prepared to release up to 25% of equity for £Respond to this opportunity. The Exit Route will be in Year five with the total paid reimbursed plus a very attractive final agreement.

Month one will be effective from the first month after the injection of capital.

Currently, the business has limited resources. It has been the principle of the Board not to raise cash until the stage the business is now at. However, there are client invoices pending amounting to £29670 for business being undertaken/completed by Ian Franklin on behalf of his clients.

The capital injection will allow for immediate growth and return. In essence, it will be used to secure new premises in Gloucester, UK at a cost of £38000 per year, salaries of Administration Assistants of £18000 per year each, salaries of Consultants at a rate of £25200 each, purchase and installation of IT and telecoms equipment, purchase of workflow and database software, purchase of furniture for the offices, marketing and advertising budget, design of new website and proactive marketing, travel for business development and purchase of capital assets such as photocopiers, PowerPoint projectors, IT hardware, etc. GlobalSCS Group Ltd prefers not to lease or enter into contracts with too many suppliers as control over costings can be reduced, so where possible, asset and other costs will be on a purchase or pay as you go basis.

The operating margins are on average at a rate of 22% over cost. The bare minimum margin that is acceptable to GlobalSCS Group Ltd for any assignment is 16.5% and the maximum is often 30% particularly on some higher level retained assignments. The company continually tries to ensure that all assignments are completed within agreed timelines and that all invoices are paid as soon

as conceivably possible. At the end of the day, by using these philosophies, GlobalSCS Group Ltd will become not just as a recognised Recruitment Consultancy, but also a cash rich one as well. On the basis of cash rich, then there may be opportunities to acquire other smaller businesses to help grow the status of GlobalSCS Group Ltd.

There are risks as with any business growth, but again; by adopting the principles of growth as discussed, many of those risks are kept to a minimum. For example, in the event of Ian Franklins’ death or incapacitation, his shareholding will automatically be passed to his partner who has expressed that the existing Board be given power of Proxy. In the event of profit margins not being achieved then this should be identified at an early stage by continual management Reporting and Management Accounts. If the sector markets fall, GlobalSCS Group Ltd will be in a position and have the ability to immediately service the alternative markets as well as the newer developing markets.

GlobalSCS group Ltd also seeks an immediate loan of GB£15000 that is designed as a ‘Bridge’ until further investment is sourced.

 

X - Conclusion

 

 

GlobalSCS Group Ltd is set to become one of the most successful Recruitment and Outplacement Consultancies, as a result of the determination of the Founder as well as the ability of its staff. As a result, any organisation or individual that is proactively and financially involved with the growth of GlobalSCS Group Ltd will undoubtedly benefit through financial return and recognition