SLF invests £3.5m in Oil & Gas service specialist Coretrax Technology
Maven is pleased to announce a £3.5 million Scottish Loan Fund (SLF) investment in energy services business Coretrax Technology Limited (Coretrax).
Set up in 2011 by the Scottish Investment Bank, the investment arm of Scottish Enterprise, and managed by Maven, the £113 million SLF provides loans of up to £5 million to ambitious Scottish businesses. Since launch the SLF has committed over £30 million in support of growth-focused companies.
Coretrax was established in 2008 and offers a wide range of downhole tools and services with applications across the well life cycle, including well bore clean-up, completion and abandonment, to the global oil & gas industry. The Coretrax suite of tools has been extremely well received by the market resulting in the business developing a good spread of blue-chip international customers as well as many of the leading North Sea operators.
The global oil & gas industry is in the midst of a period of significant investment and with the world’s resources of “easy” oil depleting, the business is benefitting from operating in a subsector which is driven by the need to extend the useful operating life of a producing oil well.
Aberdeen-based Coretrax has carved a niche in the market by being able to provide a bespoke customer solution quickly and efficiently. The flexibility of this service offering and the technical expertise held within the business has helped forge strong customer relationships.
The business has achieved year-on-year growth and has established an excellent reputation in the market for innovative technological solutions and impeccable customer service. Led by an experienced senior management team the business is focussed on driving further growth over the next three years. The flexible funding package from the SLF will also allow Coretrax to expand its existing Middle East operation, having already won significant contracts in Saudi Arabia.
Kieran Good, Investment Manager at Maven, said: “Coretrax is an excellent example of a high growth business which is ideally suited to take advantage of the flexible long term capital the Scottish Loan Fund can provide. Kenny and his team have a superb track record of delivering growth on the back of innovative technology and impeccable customer service and we are delighted to be on board. SLF funding has proved to be a perfect fit for what the business is trying to achieve and we are pleased to support this dynamic Scottish SME with its growth plans.”
Kenny Murray, Managing Director at Coretrax, said: “As a team we felt Maven had a real understanding of our business and recognised our aspirations for future growth. We are delighted that Maven and the SLF have committed to support Coretrax. 2013 was an immensely successful year for the company and, thanks to this investment, we look to meet and surpass targets in the coming months.”
Kerry Sharp, Head of the Scottish Investment Bank, said: “Coretrax has been working intensively with a number of areas of Scottish Enterprise to realise its ambitious growth plans, including commitment to innovation and new product development in the oil and gas sector. We are pleased to see them extending their international reach, and to have been able to support this through the Scottish Loan Fund. We look forward to what the future brings for Coretrax.”