Office furniture specialist set for more investment and expansion

IT was a baptism of fire.

The trio of senior managers who acquired control of office furniture designer and manufacturer Flexiform Business Furniture Ltd could not have predicted the rough waters they had to steer the company through following a management buy-out in 2004.

Managing director Nick Hewitt, sales and marketing director Nick Saunders and finance director James Downs had acquired the business with the backing of venture capitalists .

Almost immediately, their business plan was knocked off course by rising energy and steel prices (steel being its major raw material) and persistent cashflow problems after an associated business went bust owing Flexiform a large sum of money.

" A year after the MBO we were really struggling," said Nick Hewitt .

"The business plan had gone horribly wrong due to factors outside our control. It meant we were struggling with very little cash and needed to focus on careful cash management and cut our cloth accordingly, including some short-time working and not being able to invest as we had planned.

"Those external factors very nearly pulled the rug from under us in the early days," Nick said.

It's a very different story today with growth and expansion once again on the cards.

In recent years Flexiform has achieved significant growth in turnover from £15 million to £20 million, a level that has been sustained for the past three years.

The plan now is to increase that figure to £25 million over the next two years .

Since the MBO, Flexiform has nearly doubled its workforce from 75 to around 130 and Nick said future plans include more significant recruitment subject to finding people with relevant skills.

"It's not easy to find people with good machining and welding skills .It's an industry -wide problem to hire and retain good skilled people," he said.

Much of the groundwork for improving and modernising Flexiform's operations had taken place before the buy-out. Nick, who joined in the finance department, had a clear ambition to own and run a business.

He grasped an opportunity to move into production management and set in motion a review of operations and systems.

"We were using old production techniques such as big batch manufacturing and holding lots of stock and there was a lack of investment in new machinery. Even though I didn't have a production background I applied logic to the process looking at how the factory worked and identifying areas for change, including IT systems to provide clarity of what and when to make products.

"Over time we have revisited everything to try and build the business. It's been a slow hard process ensuring products, pricing and manufacturing is right. As a result in recent years we have achieved good levels of growth," said Nick.

Flexiform and its sister company Asgard which produces steel security sheds, operate from a 118,000 sq ft site in Thornbury which includes the former Bradford City Transport tramsheds.

At the time of the MBO, the new owners could not not afford to buy the building but finally acquired it last November. More than £400,000 over and above the purchase price has so far been invested in improvements, including new roofing, an improved canteen, toilets, locker room and other welfare facilities for employees, car parking and resurfacing the driveway for the first time in 20 years.

Nick said that , in spite of becoming a leaner manufacturer, Flexiform still suffered from a shortage of space. Buying the building had been a key part of plans to develop the business, including possible expansion onto spare land on the site.

Two years ago £300,000 was invested on a large steel folding machine and the company is now looking at buying another large piece of kit and technology to increase throughput.

Flexiform's core business has been designing, manufacturing, supplying and installing office furniture for more than 40 years.New product development for the medium to high end of the market is also key to its future plans.

It employs a full 3D virtual prototyping programme that enables customers to see new products before they are physically built.

Flexiform is a major supplier to the public sector, including most government departments and many local authorities and public bodies such as the NHS, along with several leading universities.

Nick said a major focus going forward would be exp[anding its range of corporate clients which already includes the likes of the Yorkshire Building Society group; energy supplier e.on, Debenhams, Greggs, as well as several major financial services and insurance companies.

Flexiform mainly sells its products directly to the end user and, as well as Bradford, has showrooms in London and Scotland.

The range of desks, workstations and storage systems reflects changing working modes, including more flexible use of office space. It features a new range of height adjustable desks enabling people to either sit or stand and not remain in a sedentary position all day; settees and soft furniture for increasingly used break out areas.

The Asgard business was launched about ten years ago and grew out of a management brainstorming session on ways to diversify the business. Most of its products are sold online to domestic consumers looking to safeguard valuable tools and equip,went sich as cycles and motorbikes; as well as schools, housebuilders and public sector supply directories such as Yorkshire Purchasing Organisation.

" We had been making metal office cupboards for 40 years or more it seemed logical to look at making secure storage products for outdoor use. We now make and sell around 7,000 Asgard sheds a year and the business will turnover around £5.5 million this year

and is a strong part of the business.

"Having the two distinct operations means that we can cover any quiet periods in ne of the other," said Nick.

He is confident that the business is in a strong position to grow and develop successfully.

" I feel as though as a company and individuals we are battle hardened and have all the scars. But that means we are good at dealing with crisis management if necessary.

"We are feeling positive and want to invest in manufacturing and IT. We are pushing forward and believe that we will continue to grow,.

"The vision is a £25million turnover in two years with more manufacturing in Bradford and significantly more jobs," said Nick.