To support its latest contracts for the 2020 Tokyo Olympic Games, ES Global – a UK-based event solutions company – found it needed liquidity to bridge the gap between project delivery and payment by its client. As Chris Ash, Managing Director at ExWorks Capital, explains, ExWorks was able to provide a flexible working capital solution to support its unique needs.
ES Global was established in 2012 via a management buyout (MBO), following the successful execution of the London 2012 Olympic Games. The company is an events solutions specialist, focusing on staging structure, event overlay and project management provision for music, sporting, corporate and hospitality events.
While the ES brand was originally established in the 1970s as a trucking company for rock concerts, the company has gone on to become a global leader in the events solutions and overlay space, heralded for its exceptional project management and timely execution.
As well as its acclaimed undertaking of London 2012, ES Global’s portfolio boasts a host of iconic events around the world, including the prestigious MTV music awards in Berlin, the 2018 Asia Games in Jakarta, and Olympics projects in Sydney, Athens, Rio and Sochi.
Such success, in addition to the company’s 22year relationship with Tokyo – where the company has undertaken various music projects – meant it was ideally placed to tender the upcoming 2020 Olympic Games.
The contracts awarded to ES Global will see it responsible for building semi-permanent venues for the event over the next two years, a project that ES Global hopes will lead to further Olympic deals in the future.
Sustainable and cost-effective
While ES Global provides both permanent and semi-permanent event spaces, its patented modular Truss system is particularly noteworthy. Working with world-renowned architects and engineers, ES Global uses the system to create specially designed venues that can be assembled and taken down in a safe, efficient manner.
Not only is this equipment ground-breaking in its technology, it is both sustainable and cost effective – with 70% of the equipment being re-used in each subsequent Olympics project. Indeed, sustainability is an integral part of the company’s business acumen: ES Global makes sure it “precycles” any infrastructure it produces, ensuring that second and third uses of the equipment are planned before the first use.
As well as being a sustainable option for event management, the advantages of using this temporary overlay are that equipment can be reused, projects become more cost-effective, and that the infrastructure can be taken down and stored. This prevents host cities from being burdened with unused and expensive-to-maintain legacy buildings.
Working on prestigious, large-scale projects such as the 2020 Olympics Games requires significant capital – something that is not easy to acquire from a single source. Indeed, while ES Global has a number of deals in place to finance the project, the gap between the delivery of each project and payment by its client was significant enough to delay progression onto subsequent projects – something which, on a tight timeline, would have led to late delivery.
As such, ES Global turned to ExWorks Capital for a flexible, tailored solution that would allow it to proceed with each project seamlessly. ExWorks provided ES Global with £7.5 million in working capital in the form of a revolving credit line to be delivered at various stages of project delivery – the senior secured debt backed by the company’s underlying assets and contractual income.
The result: ES Global will be able to ensure the smooth delivery of its contracts, upholding its commitment to organised, timely delivery – something which is vital to retaining the confidence of its clients.