Ireland's biggest cash manager who has endured 200 armed robberies and a tiger kidnapping

Irish Times

6 days ago

Terry Hughes founded Pivotal, a cash-in-transit and cash-management business, in 2005. It serves about 8,000 customers across Ireland and Britain.
Starting from a single branch in Belfast, Pivotal has expanded to operate across 18 centres, employing 1,200 people. It provides about 44,000 cash-in-transit services per week through its fleet of 550 vehicles.
It also wholly owns and operates about 2,000 ATMs across Britain and Ireland, with plans to expand this to 10,000.
He has been shortlisted in the established category for the
EY Entrepreneur of the Year
awards
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What vision/light-bulb moment prompted you to start up in business?
I saw that cash was a product that should be traded and managed as a commodity. To that point, the industry focused wholly on secure storage and secure logistics.
What makes your business model unique?
We buy and sell cash using wholly owned, bespoke technology across Britain and Ireland. This is enabled by our infrastructure of 18 cash centres, 550 armoured vehicles, and 1,200 employees.
What was your back-to-the-wall moment and how did you overcome it?
There have been many, including the 2009 crash, when our [finance] facilities were called in; Covid, when 80 per cent of our business ceased within days; enduring over 200 armed robberies, a Tiger Kidnapping and an armed branch takeover resulting in a £5 million (€5.7 million) loss.
I overcame it all with resilience and perseverance, and with the support of an unbelievable team. It's true: what doesn't kill you makes you stronger. Learn, adapt, overcome and never give up.
What moment/deal would you cite as a turning point for the company?
The acquisition of Security Plus in the UK has been the biggest game changer, taking the business towards £100 million and cementing our position as the largest independent service provider in Europe.
To what extent does your business trade internationally?
We currently trade across Britain and Ireland, with plans to move into mainland Europe imminently – with the Czech Republic, Holland and Italy as identified markets. We believe that success there will open up other international markets for the business.
What are your growth funding plans?
Our funding path has been an eclectic journey since 2005. Initial funding came directly from my own resources and savings, with some support from the bank through hire purchase and termed facilities.
We traded well and generated free cash within the business, incrementally borrowing substantial amounts from the bank to fund capital expansion, such as building a secure cash centre, equipment and vehicle fit-outs.
At the time, the bank was eager to lend to the business. That changed with the financial crash, when we quickly realised we were significantly over-leveraged and the banks wanted their money back.
It was a strained time, to say the least. I had to ask staff to take wage reductions, maxed out my credit cards, and relied on family to provide enough funding to keep the doors open. Ultimately, in February 2009, a £30,000 credit union loan kept us operating.
For several years after, we avoided debt and relied on free cash flow to fund growth, which undoubtedly delayed expansion.
A few years ago, we moved to Barclays Bank, who have been fantastic and supported our acquisition of Security Plus in the UK, a transformational step. We now maintain relatively conservative debt, a mix of termed facilities, overdraft, hire purchase and invoice financing.
How will your market look in three years and where would you like your business to be?
We will broaden our service offering to maximise the value of our infrastructure, IT, secure facilities, logistical footprint and extensive customer base.
Additional services will include the secure storage, handling and distribution of high-value items. We have recently secured the contract across Ireland with the US embassy for visa and passport management. We will also develop our foreign currency offering into wholesale note supply.
Our goal is to have a robust plan in place to grow the business to £1 billion in contracted revenues and improve our earnings to 20 per cent of revenues.
What are your annual revenues and profits?
This year, we are budgeted to achieve £100 million in revenues, with earnings of £13.5 million. Our contracts are typically for three years, giving us strong visibility on delivery.
What are you doing to disrupt, innovate and improve your offering?
Pivotal has developed wholly bespoke software (of which we own the IP) and we maintain an ongoing programme of development and continuous improvement.
We own and operate the entire cash management cycle, underpinned by our class-leading software. We arbitrate cash, which reduces our customers' cost of cash handling and delivers a far more efficient service.