Readypower is one of the leading accredited suppliers of specialist asset-heavy services to the regulated rail sector in the UK.
Readypower is a leading accredited supplier of specialist asset-heavy services to the regulated rail sector in England and Wales. It operates from two primary ‘hub’ sites in the South-East of England and the Midlands, with a number of satellite facilities around the UK.
The company owns a modern fleet of over 200 certified Road Rail Vehicles (“RRVs”), which are capable of operating on both roads and rail tracks. It plays a critical role in assisting its customers to repair and maintain the UK rail infrastructure, with ever-increasing rail usage placing greater demands on the network. The buyout from a private vendor was led by Russell Jack, who will be the new Chief Executive Officer (CEO), and Tony Hepburn, who will be the new Chief Operating Officer (COO).
The Big Idea
Operating in such a heavily-regulated and demanding market requires first-class assets, people and services and a relentless focus on quality and reliability. Readypower holds an excellent market position as one of three large suppliers servicing c.60% between them of a mission-critical niche market. There are considerable barriers for any new entrants including substantial capital expenditure, deeply embedded customer relationships and specialist planning and logistics capabilities. Furthermore, the rail industry is a highly regulated and risk-averse sector, where new entrants will struggle to gain the necessary credibility, operational certification or access the best properly-trained RRV operators easily.
The Grand Plan
The company’s growth strategy is based on continuing the business’s evolution to being recognised as a specialist services provider to the rail sector, leveraging its extensive asset base, rather than merely a plant hire company. Readypower plans to continue the growth in compliance-focused work performed for customers under its Plant Operations Scheme (“POS”) licence and to selectively take on certain small contracting projects where there is a market need. It intends to invest considerably in people, premises and assets to ensure that its already market-leading standards of operational excellence and customer service are further enhanced. Whilst most of the growth at Readypower is expected to be generated organically, there may be some potential opportunities for bolt-on acquisitions, either to acquire more plant cost-effectively or to further accelerate the development of certain specialist services.
The Bottom Line
Readypower is one of the dominant three players in a key niche market, with a high-calibre management team which has demonstrated an ability to grow Readypower’s revenues and profits, especially in higher-value specialist services work. It has a well-invested and flexible base of rail assets and a clear focus on quality, reliability and customer service. This is vital when supplying such mission-critical services into a heavily-regulated infrastructure market where the cost of failure for its customers is very significant.
Date of investment: February 2017
Deal status: Current
Company website: www.readypower.co.uk
For more information talk to: Alistair Armstrong or Peter Jacobs