Targeting significant expansion, TXO has obtained a £4 million Revolving Credit Facility with HSBC that will enable it to increase its stock capacity. The company currently generates sales of £20 million a year but expects the finance facility to enable it to increase sales to around £50 million within three years.
Since its inception in 2005, TXO has grown rapidly year on year from its Chepstow base, with new offices opening in Italy, Sweden, the US, Brazil and Australia. The company owns one of the largest global inventories of fixed-line and mobile networking parts and is continually investing in its stock to provide the broadest range of competitively-priced equipment.
The facility will allow TXO to bid for telecoms stock in greater volume and of higher value than previously, helping to accelerate its growth. The company will also require more people to source and sell stock, as well as staff to process and prepare stock that comes into Chepstow for sale. TXO is planning to increase employee numbers by a third on the back of its expansion plans, taking total staff numbers up from 90 to 120 by 2017.
TXO’s Finance Director Calvin Coakley said: “We have previously purchased stock from cash generated by the business but this has constrained our ability to compete in the larger stock sales. This new facility from HSBC gives us the financial capability and flexibility to bid for those larger stock sales, which makes us more attractive to our customer base.”