SRL is the market leading temporary traffic equipment (“TTE”) rental company in the UK. 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.

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Overview

SRL’s market-leading reputation is supported by its national depot network, providing a 24/7, 365 days a year service on which customers rely for quick deployment and reactive maintenance work.

Why we invested

TTE is mission-critical to the safe use of roads and SRL fits with 3i Infrastructure'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. In addition, outsourcing ownership of TTE makes economic sense for traffic management companies, as it allows them to more efficiently manage maintenance and utilisation. Finally, SRL has a market leading reputation and is trusted by its customers. 

Recent developments

SRL performed slightly behind expectations during the financial year. There has been a reduction in general market activity levels due to delays in capital expenditure programmes within the public sector in advance of the UK general election, and in the telecom sector as the fibre rollout has slowed.

Despite this challenging market environment, SRL has shown resilience and continued to grow its revenue and EBITDA. It has also been successful in extending contract durations with customers, providing better revenue visibility.