Natwest Case Study - PKR Technologies
PKR is an online gaming company that offers the world’s most advanced online poker and casino experience, featuring spectacular ‘real-life’ 3D graphic environments and fully personalised characters. The online gaming market is growing rapidly worldwide and is constantly evolving. As one of the major pioneers ranked top of the Sunday Times Tech Track 100, PKR needs to continually invest in the latest technology in order to remain competitive.
PKR originally approached its corporate bank, RBS International in the Channel Islands, to provide the finance for its business technology equipment including servers and software, and it was Scott Phillpott, RBS international Senior Relationship Director that suggested Lombard.
Lombard’s Corporate Relationship Manager Toby Robilliard, and Lombard Technology Services’ Relationship Manager Mike Rixon, met with Jean-Pierre Houareau, Chief Financial Officer of PKR. The team identified that PKR required a financial and operational solution that resolved a complex company structure, released capital and supported the frequent refresh of up to £1 million of hardware and software per year.
Houareau explains, “As a technology business it is vital we keep our IT equipment up to date to ensure we lead the market, but this is ultimately very expensive. What was very helpful was that Lombard took this view and was prepared to finance not only our requirements moving forward, but also purchases made in the past 12 months.”
With a turnover increasing by 40% every year significant capital could be released from technology assets which would boost PKR’s strategic growth into European markets. This would effectively help to fund the launch of a whole new site. Houareau adds, “Having the additional capital at our disposal was crucial.”
As Rixon says, “Our solution with PKR was to offer three year finance cycles which released operating capital and gave the business flexibility to upgrade technology as the market evolves. In addition Lombard Technology Services helped PKR achieve reduced supply pricing as well as enhanced control with Lombard’s comprehensive Complete Asset and Lease Management tool, C.A.L.M.”
Moving forward, the business partnership continues to provide support for the future supply, renewal, and disposal of technology equipment as PKR grows. Houareau concludes, “We enjoy a very good relationship which I hope will continue.”