Family business finalist supported by bank

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06/10/2017

Connelly Security Systems Ltd (CSS) supplies, installs and maintains a range of security and fire alarm systems. This family-run business has been a long-standing customer of Clydesdale Bank for over 30 years. So when they were making major changes, they knew we could help.

We supported CSS with a share buy-back to allow the retirement of Pat Connelly, a founding director, with new facilities of £900k. Pat’s exit from the business has been agreed since 2012 and his level of input into the business has gradually wound down over the past ten years in anticipation of this exit.

No alarm as business grows

A consideration of £870,000 was agreed for the purchase of the 50% shareholding – which at face value would give CSS an enterprise value of £1.74M. It’s clear from this valuation, and CSS’ base of over 250,000 customers, that this is a family business which has grown to be incredibly successful. Their success was recognised as a finalist at the 2016 Family Business Awards earlier this year.

Our SME cash flow finance offering can help manage key steps in a business lifecycle – such as the smooth exit of key personnel. As a business evolves, it’s crucial that there is support for such key events, and CSS is a good example of a business using to facilitate a clearly defined exit plan.

Keeping service local

The company’s head office is located in Balmore Industrial Estate, Glasgow. Core operations are run from these premises with local depots in Edinburgh and Ayr.

CSS currently employs more than 85 staff across its contact centre, engineering and managerial operations. One of the things that help CSS to stand out from their competitors is that they operate their own Alarm Receiving Centre in Glasgow. Most alarm installation companies outsource this activity outside Scotland. They also provide this service to a number of other alarm companies in Scotland who don’t have the same resources.

We're committed to supporting SMEs and family businesses. We're a proud sponsor of The Herald Scottish Family Business Awards 2017. We also recently pledged £6billion of lending for SMEs over the next three years.