Bank-backed growth capital firm the Business Growth Fund has made nine investments during its maiden year of operation by backing UK businesses in the manufacturing, restaurant and optics sectors, with its latest being in Cennox.
Founded in 2004 by Clive Nation, Cennox provides services to the ATM (cash machines) sector and has customers including Barclays, HSBC and Nationwide. It currently comprises of two divisions, ATM Parts and Mainet, and is based in Surrey.
According to the Business Growth Fund (BGF), its investment will allow Cennox to fund working capital, add staff and increase its international operations.
Speaking to GrowthBusiness in May, BGF head of investments Richard Bishop, said that the fund, which is backed by Barclays, HSBC, Lloyds, RBS and Standard Chartered to the tune of £2.5 billion, is hoping to be closing 40 deals a year in the long run.
He added, ‘Clearly it is going to take us a little while to get there but with the momentum we are building at the moment we can see that as being a really capable target.
‘Each of the six offices that we run have all made an investment already and it is very important for us that we can invest across a whole range of sectors and all over the UK.’
ATM Parts, the division of Cennox, has developed a security device which tackles skimming from terminals. The technology works by being attached to ATMs and picks up on fraudulent activities and then reports activity to the chosen financial institutions. ATM Parts’ system is used by Transport for London as part of its cycle hire scheme.
Nation, founder and CEO of Cennox, comments, ‘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.’
The deal is led by Paul Oldham, regional director at the BGF, who says that the Cennox business is in a high growth sector.
He adds, ‘It is a market leader and its innovative approach has led to the development of unique new products. The highly capable management team has extensive experience in the sector.’