FEATURE JANUARY 2011 While the recession compresses its


market some competitors have seen customers jump ship seeking new possibilities and Commercial was ready to welcome them aboard across its specialisms - office supplies, IT services, interiors, recruitment and print. Its determination and confidence is apparent in the appointment of Richard Keatinge, who was enticed away from his role of associate partner at Deloitte and tasked with one thing – helping Commercial capitalising on its prospects for growth. “Office supplies was down by 10 to 15


per cent per cent last year, so in theory Commercial should not be doing so well. But if you look at its market positioning, it’s top of the independents,” said Mr Keatinge, whose analysis is peppered with enthusiasm for the potential of the journey ahead. “The most exciting thing is that last


year, in the teeth of the recession, the business grew by nine per cent. This year the market is still tough. It is still down three to four per cent. But Commercial is still accelerating. That is to do with value for money. People are coming to Commercial. “Last year we turned over £23m and this year we expect it to be £28m. The target of £40m is now being reassessed. That “value for money”is not just about.


It is very much about quality of service, according to Mr Keatinge, who points through the window of one of the firm’s meeting rooms to the company’s staff. A low turnover of staff suggests not


just loyalty, said Mr Keatinge. It also means staff have accumulated knowledge and experience and excellent skill levels. And it suggests a positive culture within the company. Commercial’s much vaunted green credentials have won it business because customers because they have been adopted throughout the business with many initiatives staff-driven. It is this ‘solid base’ which Mr Keatinge


feels positions the company well for growth and has helped it built so much momentum. “My diligence indicated that with


some extra investment in systems and people, which will not cost a lot as both


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are in pretty good shape, you have great opportunity,” he said. “Before you start racing forward you need to have strong platform of people and systems in place.” Seizing that would be both a considered


and characteristically bold step for the Gloucestershire firm because it would see it enter uncharted waters, breaking ranks to go where no other business of its size within its sector had dared to venture. “There are a bunch of companies that


have got to the £25m mark (turnover). The question we have been trying to answer is ‘why is it that they don’t push on past that mark?’ and ‘is there opportunity to do that?’, said Mr Keatinge. “In my experience you find there are


many big corporate customers who deal with big national providers because they are the ones who have the skills and professionalism to handle them.


PARTNERSHIP: Arthur Hindmarch, and Simone Mann


But they would much rather deal with a smaller more responsive company, but it needs to be of sufficient skill and wit and professionalism. “From our experience we have a


number of different divisions here which are dominated by big players all up above the £200m mark. There is then a huge gap (turnover wise) between them to the Commercials of this world. “There are 1,000 office supply companies, then you have the group of bigger firms. The question is, can any of that first group move on? There is a big opportunity there if you can service those firms in a small business way. That will be a good way to make money. “There growth is happening here


already. But you have to think how you want to grow and we want organic growth, primarily. In which case there are areas we need to look at more closely. “The better growth and most cost-


effective is organic growth if you do it well. It says that what you are doing is right. “I have seen business go astray


that have kept pressing the acquisition button.” That does not mean that mergers and acquisitions are out of the question. “There are types of acquisitions that


will come up, for example distressed estate businesses. Those companies which are in trouble. You can buy a customer base this way. “Then you have the acquisition


where you can then sell into an existing customer base. “I think of the two types there are a lot


“There are a bunch of companies that have got to the £25m mark (turnover). The question we have been trying to answer is ‘why is it that they don’t push on past that mark?’.”


of opportunities coming our way. Having done a lot of mergers and acquisitions I am extremely cautious about it, although I have seen a lot go right.” The plan is focused. Commercial’s


strong presence in Bristol, Plymouth and the South West will be added to. Birmingham and the M3 and M4 corridors are areas of interest with the possibility of more offices in the future not being ruled out.


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JANUARY 2011 17


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