Camberley: BGF invests £3m in Cennox

Business Growth Fund (BGF), established to help the UK’s fast growing smaller and medium-sized businesses, has announced a £3 million investment of growth capital in the Cennox Plc group of companies (including ATM Parts and Mainet) which provides services to the ATM (cash machines) sector. 

Camberley-based Cennox was founded in 2004 by Clive Nation as a specialist ATM services group and has been successfully built up through organic growth and acquisition to comprise of two main businesses: ATM Parts and Mainet. Blue-chip customers include Barclays, HSBC, Nationwide, IBM, Bank Machine, Loomis and G4S.
ATM Parts is a leading international supplier of parts for ATMs and has developed and patented a security device that combats skimming from payment terminals. The anti-skimming device is attached to ATMs and terminals and works by detecting a range of fraudulent activities and reporting the threat level to the ATM operator and to financial institutions. This innovative security device is used by a number of international banks and Transport for London (for the Barclays cycle hire scheme payment terminals in London). Mainet supplies ATM signage, installation and facilities management services and is the UK’s leading ATM branding company.
BGF’s £3m equity investment will enable the Cennox group to fund working capital, invest in additional staff and ramp up its international operations. BGF will support management in its plans to grow the business both in the UK and overseas.
Cennox is headquartered in Camberley and has several offices across the UK. Turnover increased by 95% in 2011 and is approaching £20m following further growth in the current year. 32% of turnover is generated in overseas markets, providing a strong platform for future growth. The global market for ATM services relevant to Cennox is valued at £5 billion and is growing rapidly with the number of machines forecast to increase by 36% in the next four years.  In emerging markets this growth is being driven by a sharp rise in the banked population. The UK market alone is valued at £150m and growth is driven by the increasing use of enhanced functionality ATMs such as deposit-taking machines.
BGF will take a minority stake in the business and will join the existing board.
Clive Nation, founder and CEO of Cennox, commented: “Since 2004 we have grown this business through organic growth and acquisitions. We now have the platform to support significant expansion, particularly in international markets through opening new offices. In addition to a financial boost, we value the operational expertise and advice that BGF can provide. Our partnership will enable us take advantage of the significant growth opportunities in the ATM market.”
Osborne Clarke, Crowe Clark Whitehill and Latitude Partners advised BGF. Shoosmiths and Baker Tilly advised Cennox.
Resources: The Business growth Fund website