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SRL Traffic Systems: Investment to accelerate growth

£24m investment accelerating growth and research and development.

Sector
  • Industrials
  • Support services

SRL Traffic Systems (SRL) is the UK’s leading manufacturer and provider of portable and temporary traffic equipment.

Deal type
  • Management buyout
Investment

£24m

The Team
LDC Region

Headquartered in Cheshire, SRL is the leading manufacturer and Equipment-as-a-Service provider for temporary, portable and semi-permanent intelligent traffic lights and variable messaging signs (VMS). It offers mission critical assets from its nationwide network of 29 depots across the UK and Republic of Ireland.

SRL’s equipment is used in many of the UK’s key infrastructure projects, primarily supporting the traffic management industry and event companies. Think of any town centre and you’ll have seen the traffic lights, pedestrian systems and VMS signs that provide road users with information, directions and safety guidance.

Building on a successful track record

In September 2019, we invested £24m to back the management buyout of the SRL business in the UK and ROI, as it embarked on the next phase of its growth strategy. The buyout was led by SRL’s existing CEO Richard Tredwin and his long-standing management team.

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LDC’s support is enabling us to significantly invest in our products, technology and people, for the benefit of our customers and to unlock the full potential of our business.”
Richard Tredwin, CEO
SRL Traffic Systems

Under his leadership SRL has grown rapidly to employ more than 140 people, operate a fleet of more than 7,500 units and grow revenues consistently by more than 20% each year, recording a turnover of £22.3m in the 2019/2020 financial year.

Private equity partnership in action

With our support, Richard and his team have kick-started a multi-million-pound capital investment programme to accelerate growth and improve the technologies they offer to customers.

The partnership has so far helped to deliver a 41% increase in revenue, through continued investment across the business, all while staying true to the ‘SRL way’. This includes expanding SRL’s current hire fleet from 8,000 to more than 11,000 systems, enhancing its manufacturing capability to quadruple its production rate and adding four new depots to its network.

The management team have also made strategic hires to help the business grow, including a CFO and a CIO to help bring technology to the heart of the business.

As part of the focus on technology, we have worked with SRL to help the business invest significantly in innovation. It is now the market leader in the manufacture and supply of mobile intelligent transport systems (ITS) and opened the UK’s largest ITS depot in Romford in July 2020. SRL has also developed a suite of highly technical products that includes the industry’s only multiphase Adaptive Detection System (ADS), a four-way solution that automatically adjust green light times to suit traffic flow.

Looking ahead, the management team is exploring complementary acquisitions, as well as opportunities to boost its presence across Europe.

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Our partnership with LDC has not only helped us to bring on-board the best talent and grow our physical footprint, but it has turbocharged our ambition to become a market leader in smart traffic technology innovation. With their support, we are now leading the way in the development of intelligent transport systems and solutions.”
Richard Tredwin, CEO
SRL Traffic Systems