British company cleans up by recognising the value of the euro

A Lancashire-based engineering company has grabbed 25 per cent of the "euro bubble" market in equipment that recognises euro coins and notes in readiness for the currency's introduction in January.

Despite Britain's ambivalence to the euro, Money Controls, the Oldham-based coin-handling specialist, is selling 5,000 of its euro machines a week throughout the euro zone, with Germany its biggest market.

It has increased sales by £20 million sterling (€32 million) this year and doubled capacity at its factory in a former Lancashire spinning mill, as companies inside and outside the euro zone wake up to the single currency.

"It is all on the back of the euro," says Mr Mike Bell, technical director. "Our staff have been working flat out for the past nine months."

Money Controls makes equipment that recognises and validates coins and notes used by machine operators such as fruit machines, parking meters, public telephones, juke boxes and vending machines. It is one of a handful of companies, including Mars Electronics in Slough, Azkoyen of Spain and NRI of Germany, that dominate the euro validation market.

It has spent £2 million gearing up for the euro market with new machinery, and it has taken on 200 extra staff at its Oldham factory, where it now employs 490. Turnover has jumped from £26 million last year to £43 million this year.

Many manufacturers have delayed switching to euro equipment until the last minute, says Mr Roger Gaskell, operations director.

"We spent six months trying to spread the message that the euro was coming, but Euroland did not wake up until Christmas last year," he says. "We sold the first machines in January and we have been selling 5,000 units a week for the past 40 weeks."

The company is undeterred by Britain's wavering. "We already have the majority of the UK market [in coin validation equipment] so it's not a problem," says Mr Bell. "And we are selling thousands of machines in the UK that are euro-capable."

But the company wants a common currency to offset the pound's strength against the euro. Almost 70 per cent of its output is exported, mostly to the euro zone.

"The pound has been an absolute nightmare," says Mr Bell. "Our prices have had to come down 15 per cent in the past two years to stay with the competition. But we have held our margins by careful supply chain management, continually improving efficiency and some nifty engineering work."

The engineering process has been complicated and each machine is made to order.

"There are 17 different mints throughout the euro zone and they all have slightly different processes," says Mr Gaskell. "So while the coins may look and feel the same they are all different and the machinery has to cope with that."

While sales are still speeding up, the company will still shut down for a week over Christmas. "Our staff are very tired and they need a break," says Mr Bell. They have been doing 24 hours a day, seven days a week and we're expecting another three to six months of blood, sweat and tears."