Keith Wardle

Manchester, ALD (UK)
Role(s):
Founder/Owner/Principal

LGT Advanced Technology Ltd

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Location: Manchester
Industry: Automotive
Year Founded: 2008
Number Employees: 1-10 people
Description: LGT Overview LGT combines the motorsport, engineering and business skills of four highly experienced professionals,  Tim Blake – Lexus / Motorsport management  Neil McArthur – Finance / Planning  George Ryton – Design / Motorsport Engineering  Keith Wardle – Business strategy and operational management Our business model is clearly focussed on two interrelated product streams which will be supplied worldwide, namely: o Bespoke Automotive • Bespoke luxury, performance and environment sensitive enhancements for Lexus vehicles (equivalent to AMG or Brabus for Mercedes Benz) o Motorsport • The development and supply of Formula Ford race cars and associated motorsport components • The development and supply of Lexus race cars and associated motorsport components The LGT Mission is, To grow a profitable and integrated global business through the design, development and delivery of technically superior products and services, for the bespoke enhancement of Lexus cars and improved performance of race cars. We have been designing and developing products since October 2006. To date the developed product range comprises, • 2 bespoke road car models, • 2 motor racing cars based on unique chassis designs, • 2 motor racing transmissions. In addition, we have a significant and exciting product pipeline for future development. LGT has also received written permission from the global head quarters of Lexus to represent the manufacturer in the worldwide homologation of the Lexus IS220 World Touring Car. Our clear priority is to develop the Bespoke Automotive and Motorsport businesses, however, in order to establish the LGT brand image and pedigree, the company also intends to race two Lexus cars in a recognised international race series, and sponsor cars in the UK Formula Ford Championship through a third party. We have prepared business projections based on the phased role out across both products and markets, with a clear focus on delivering profitability and positive cash flow as early as possible. Sales for the first 3 years of the projection focus on UK and European markets. The projection shows, • Sales of £15.0m by Year 3. • EBIT of £3.8m by Year 3 (EBITDA £4.9m) • A maximum cash requirement of £6.5m after 19 months (including the purchase of premises £2.5m) • Cash payback mid Year 4. In considering our longer term business goals the directors are mindful of potential exit strategies for investors. In year 3 we propose to recapitalise the business via an IPO or private equity sale. This would be aimed at crystallising the returns for the initial investor / equity holder as well as financing the costs of establishing a franchise dealer network in the US market. By year 5/6 we would see the business being attractive to Lexus or a major US dealer as a purchaser. Strategy and Relationships Lexus is the only premium automotive brand that does not currently have a Bespoke Automotive arm, and LGT will offer custom-made trim options, engine performance enhancements, suspension components, styling accessories and environment sensitive enhancements for Lexus cars across their global market. Our ultimate objective is to exploit this major gap in the market by supplying a range of products and services internationally through a network of franchises.