HBS

HBS was refocused on its core competencies 

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Hyder Business Services (HBS) was a business process outsourcing (BPO) and information technology company.

Investment strategy

Asset-Backed: Long-term, committed contracts gave stability and a reliable source of cash flow.

Requiring Fundamental Change: HBS was a high quality business which was not achieving its potential as a small, non-core division of a large utility parent. HBS’s main customer base was local government, which was under pressure to save costs and shed non-core activities. HBS was well-positioned to establish itself as the market leader in the BPO sector, but it required help winning new business in order to attain critical mass.

Creating value 

  1. Transforming strategy

    • HBS focused on its core local government market by shedding non-core contracts. New business development was concentrated on its core local government market, which was under pressure to save costs.
    • The business underwent a major re-engineering programme, helping to realise substantial cost reductions within its existing contracts. In addition to cost reduction, the change programme helped deliver numerous examples of improved process efficiency which resulted in new business from existing local authorities seeking to reap similar efficiency improvements.
  2. Strengthening management

    • A new CEO was appointed who strengthened the management team and implemented more rigorous management controls and performance management processes.
  3. Lowering the cost of capital to create extra upside

    • HBS successfully signed major, long-term local authority contracts which offered the potential to lower the business’s cost of capital.

Status of Investment: The HBS investment has been fully realised. In 2007, HBS was sold to a trade buyer.

Back to list of investments 

200

approximate number of clients, primarily in the public sector