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SRL Traffic Systems
UKTransport & logistics
Overview
SRL, which is headquartered in Cheshire, is the market leading temporary traffic equipment (“TTE”) rental company in the UK. SRL’s product range includes temporary traffic lights, adaptive detection systems, pedestrian and cyclist systems, variable messaging systems, barriers and CCTV. SRL offers its customers a full-service rental solution, which includes the planning and design of traffic management systems, installation, maintenance and integration with existing systems, as well as direct sales of equipment assembled by SRL.
SRL’s market-leading reputation is supported by its network of 28 depots nationwide, providing a 24/7 365 day a year service on which customers rely for quick deployment and reactive maintenance work.
Recent developments
SRL has performed broadly as expected during the financial year. Traffic light rental revenues are growing strongly at c.15% per annum despite activity levels being held back by lower roadworks budgets in H2 2022, resulting in lower days on hire than forecasted. EBITDA growth in the period has been supported by SRL’s strong market position and ability to increase prices in line with inflation.
We are working closely with management to professionalise account management processes and optimise fleet utilisation and build. Progress has also been made to engage directly with the end-promoters of roadworks and beyond SRL’s traditional customer base of traffic management companies.
Investment rationale
3i Infrastructure acquired SRL in December 2021.
- TTE is mission-critical to the safe use of roads
- SRL fits with the Company’s strategy of investing in companies with leading market positions and barriers to entry, yet with operational levers to achieve attractive returns for shareholders through active asset management
- SRL has sound market fundamentals through the increasing emphasis placed on health and safety, and a growing propensity to rent rather than own TTE
- Outsourcing ownership of TTE makes economic sense for traffic management companies, as it allows them to more efficiently manage maintenance and utilisation
- SRL has a market leading reputation and is trusted by its customers
Sustainability
SRL's temporary traffic solutions enable greater segregation and control of traffic flows, in turn improving safety and reducing congestion around roadworks. On a congested junction, SRL’s adaptive detection system can reduce the average journey time by up to 22%. This improves satisfaction for road users and local communities, and reduces pollution. In addition focus is being placed on health and safety through the use of more sophisticated methods of traffic management to protect highway workers and segregate traffic, cyclists and pedestrians.
Key facts30 strategically located depots in the UKc.13,000 pieces of equipment under full service contracts24/7 service with access to any location within two hours
