Sureserve Group acquired by Cap10 Partners

Cap10 Partners acquired the whole of Sureserve Group through a scheme of arrangement effective on 11 July 2023, taking the company off the London Stock Exchange. The offer of 125 pence per share valued the equity at {equity_value}, and the implied enterprise value of £100–350M represented an EV/EBITDA multiple of 5x–12x against the result for the year ending that September. Sureserve installs and maintains the heating, electrical, fire and water systems of social housing across the United Kingdom, and carries out the statutory inspections its landlords are required to perform. It also fits insulation, heat pumps and solar panels under energy efficiency programmes. Its customers are housing associations and local authorities, and it employs more than 3,600 people. Revenue amounted to £250–500M for the year to September 2022. Compliance rather than construction determines the demand. A social landlord must have every gas appliance inspected annually, every electrical installation tested on a fixed cycle and fire safety equipment checked at set intervals, under obligations that do not move with its budget or with the economy. Those inspections are awarded under multi-year contracts and generate the maintenance and replacement work that follows from them. A second source of demand comes from the condition of the housing stock itself. British social housing is among the least thermally efficient in Europe, and successive programmes have funded insulation, heating replacement and renewable installation to reduce both emissions and the fuel costs borne by tenants. The purchase was the first transaction of Cap10’s debut fund. Under its ownership Sureserve acquired Swale Heating in November 2023 and Duality Group in April 2024.