Scott Tod Developments

Origins

Scott Tod Developments Ltd was formed by in 1978 by the current managing director’s father when he identified a gap in the market relating to change giving machines within amusement arcades. However, the major company development started in 1996 when Nicholas Tod was allowe to run the business by his father for a year before purchasing it from him. He undertook a strategic analysis of the business core competencies and identified three new areas for the business to move into. Its first major challenge was the introduction of Video Games in 1980, at which point the sale of Change Machines stopped. If an Amusement Arcade (the main sales area at that time) did not have a Video Game it did not need a Change Machine. More recently, when he joined the business in 1994, the firm faced several funding issues. It was decided that the business could (and needed) to grow more quickly, although the financing options available to the firm at the time were severally limited. The venture capitalists approached wanted too much equity and too high a return for the investment they were offering. Consequently, the initial development and expansion of the company was limited to its own cashflow.

Success Factor

A key factor for the business is a willingness to invest into Research & Development, and in the past 6 years between 10 and 15% of the company’s turnover has been invested back into R&D for its future development. The introduction of ATMs into the company product range, both for sales and continuing turnover, ahs also been of enormous benefit to the business. Finally, a dynamic belief throughout the whole company in its own ability and willingness to embrace new ideas, which has resulted in the firm winning contracts well above its normal market size.

The Future

The business has recently been floated on the AIM market to allow it to enhance its general image within all market sectors it supplies to and operates in. The firm intends to continue the dynamic roll out of ATM’s into the Leisure Retail sector and it is proving that it is more than capable of winning major contracts. It intends to capitalise on this with the future growth of convenience ATM’s and the redistribution of contracts that will follow shortly. It has recently opened its in-house Cash In Transit business, which will develop, over the next two years, into a national ATM Replenishment operation not only for Scott Tod, but also for other ATM Suppliers.