Case study: TTC

29-01-2023

Forming a resilient, digitally-focused and customer-centric road safety provider – TTC is a leading provider of road user education and compliance services in the UK.

Enhancing road safety with a talented and highly experienced management team – TTC was founded in 1993 after being involved in the original pilot scheme in England for what later became the Drink Drive Rehabilitation Scheme (DDRS). TTC is now the UK’s largest and most experienced road safety organisation, supporting over 500,000 drivers each year.

Given the strong public and political support for driver rehabilitation and increased road safety, we were excited to partner with TTC. We were impressed by the talented and highly experienced management team with a robust business model to deliver significant growth. The management team had a track record of making acquisitions and had identified the opportunity to broaden the product offering in what remained a fragmented market.

In 2017, we invested £10.5m into the business, and Palatine Partners Tony Dickin and Richard Thomas joined the board as Non-Executive Directors.

Going for growth with added value

New contract wins – During our investment, all existing contracts were retained, and we saw a 41% increase in police volumes. Our Value Creation Plan (VCP) mapped the police market and identified potential new deals. This resulted in three new police force contracts. TTC’s strong ESG focus was key, with social value becoming a key part of retaining and winning contracts.

Strategic M&A – During our investment, the business completed two acquisitions, Business Driver, which we helped source off market, and Licence Bureau. We supported sourcing, structuring and transacting the deals, significantly enhancing the business’ corporate driver training offering. We also introduced a CFO with significant private equity and strategic M&A experience.

Digitalisation – We supported the business in hiring an experienced Chief Technical Officer, who improved online bookings to 82% and introduced online re-booking and automated payments. TTC also invested in a corporate compliance platform and reduced the company’s carbon footprint through IT automation.

Procurement – We supported TTC in conducting a procurement review, which identified £0.5m of potential savings. We then implemented several initiatives, including reducing course material print and refreshment costs and introducing online course delivery.

ESG – We supported TTC in developing a sustainability strategy and framework aligned with the company’s purpose and business growth plan. The strategy had five action areas: ‘Our Business Ethos, Our People, Caring for our Customers, Supporting our Local Communities and Our Environmental Impacts’.

Digitalisation enabled core services to be switched to an online delivery model which led to a dramatic drop in the company’s carbon footprint. Caring for employees remained a priority throughout the investment and following the roll-out of a people-focused HR strategy, with an emphasis on employee mental health and wellbeing.

TTC became an Investors in People Gold certified business and successfully reduced staff churn from 26% at investment to circa 10% at exit.

The results – During our investment, revenue grew from circa. £27m to more than £40m. The business was also awarded the ‘Excellence in ESG 2020’ award from the British Private Equity & Venture Capital Association (BVCA), recognising TTC’s outstanding ESG practices during the hold period.

The partnership we have enjoyed with Palatine has been highly successful over the last four years, based on a close, collaborative and supportive relationship. Together we have achieved a huge amount as we professionalised the business, investing significantly in digital technology and recruiting a talented and ambitious management team.

Jim Kirkwood

CEO at TTC