The acquisition of the £3m-turnover company from its parent company, DLRS Ltd, headquartered in Bray, Ireland, will bring The Tall Group to a group turnover of £12m.
Tall Group managing director Martin Ruda said: “This acquisition gives us a great reach. It consolidates our position in the cheque market as a as a whole and adds to our product line with a focus on the standard cheque and credit market to add to our established position in the speciality cheque and credit product market.
“It gives us a foothold in the island of Ireland, which we didn’t have before, and it provides us with established connections with existing banks.”
DLRS (NI) is a CPAS-accredited cheque printer which produces standard, personalised cheque and credit books for a number of leading financial organisations in the UK and Ireland including Santander, Danske Bank, Bank of Ireland, Yorkshire and Clydesdale Banks. DLRS (NI) also produces secure documents for governments.
Ruda said there were no changes planned at the company, which has 24 staff. Peter Thomas will remain as managing director.
Ruda added that although the cheque market was shrinking at a rate of 10%-12% a year in the UK, in emerging markets, particularly Africa, cheque use was growing.
In addition the process of cheque clearing truncation formalised in The Small Business, Enterprise and Employment Act, which received royal assent in March, will allow for the digitisation of cheques for quicker clearing in no more than two working days.
Banks, businesses and consumers will be able to scan cheques under this system using scanners and even smartphones, enabling remote deposit.
Ruda said that this may deter those customers who use cheques as a way of delaying money leaving their account but in other sectors of the market this will be a welcome way of improving the experience of using cheques for those who currently find them useful.
“Our view is the upshot of this is that cheques will continue to decline but this will flatten out over the next three to four years in the UK. In international markets there is significant cheque use and a growing use of banking systems. The application of the technology needed for digitisation and clearing truncation is also easier because they do not have legacy systems we have in the UK.
The Tall Group comprises Tall Security Print, based in Runcorn, Cheshire, and Checkprint in Hinckley, Leicestershire and produces special cheques, credits and secure encoded documents.
In March it invested £500,000 in new litho, digital and finishing equipment, including a new 500mm web press from Spanish manufacturer Imer.
It exports to more than 20 countries, with products ranging from cheques to vouchers and from certificates to ballot papers for elections around the world.
