20 international trade


Bank‘s support fuels bright future for Bagnalls


We all love to moan about the British weather, but one man has more reason than most to worry whether it‘s time to dust down the BBQ or wrap up warmly and light the wood burner


Jonathan Bagnall is managing director of the Bagnalls group of companies, which boasts an expanding portfolio of businesses ranging from solid fuels through to charcoal supplies, slate flooring, and camping and caravanning.


Founded in 1980 by Bagnall‘s late father, the group today has a turnover of some £12 million, but it is still very much a family business, with brothers Paul and Douglas each in charge of respective subsidiary companies.


These include Diamond Fuel Supplies, one of the leading UK importers of charcoal products from all over the world; Bagnalls Haulage, now a major player in the distribution of pre-packed seasonal barbeque and heating products; and Fuel Express, a co-operative which delivers own brand fuel to clients nationwide.


For Jonathan Bagnall, who joined the family business at 20 and has been there over 30 years, the ongoing support of Barclays Bank over that entire period, particularly with regard to its overseas trade, has been a critical part of its success.


The seasonal nature of the charcoal trade – which includes briquettes, lumpwood, minigrills and charcoal itself – combined with the unpredictability of summer sunshine means stock can disappear from warehouses almost overnight or sit on the shelves for weeks waiting for the rain to stop.


And, given that it takes at least three months from the time the stock – all from sustainable sources and mostly from Namibia, Ghana and South Africa – is purchased to when it arrives, it‘s a juggling act which requires both nerves of steel and enough cash to enable suppliers to be paid as soon as the goods are en route.


“We absolutely have to carry enough stock to get us through the peaks and troughs. If it‘s a nice weekend, I can be looking at sales of £1.5m-£2m over a two-day period and you can only service those orders if you have the supplies,“ said Bagnall.


“We had a real spurge of sales in March when the weather was hot, but then it went quiet for a few weeks and stock began building up again. I‘ve learnt not to try and predict what the weather is going to do.“


The companies within the group supply a wide range of customers, major supermarket chains such as Tesco, Lidl and Aldi, as well as garden


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THE LINK BETWEEN CUSTOMER AND BANK


centres, garages and hardware chains, and the ability to offer increased supplies is critical to its continued growth.


This happened in 2011, when Tesco wanted to double its order, leading Bagnall to turn to Barclays for help. The bank provided a combined trade loan facility and overdraft to the tune of £5m, enabling it to clinch the deal.


It‘s a relationship which Bagnall values and knows has been key to keeping his business growing steadily.


“Whenever I have asked the bank for a loan the answer has always been yes, we‘ve never been refused, they know we have a good track record and they also have our property assets behind the deals as security, which more than covers the value of the loans,“ he said.


“Over time, I‘ve seen our overdraft go from £1,000 to £2m and then another £3m for stock financing. Their support has been very important to us.“


The bank‘s funding has also enabled Bagnalls to re-invest profits back into the communities where it sources its fuels.


A new factory in Namibia will soon boast the most modern production and packaging facilities in the country, and there are also plans to invest in a joint venture factory in Ghana to produce high-energy sawdust briquettes, described as the “Rolls Royce“ of the briquette market.


Details: Jonathan Bagnall 01869-350749 jonathanbagnall@fuelexpress.co.uk www.bagnalls.net


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JULY/AUGUST 2012


David Rushbrook is the relationship director at Barclays who works with Bagnall and his team.


“As the link between the customer and the bank, my role is to make sure we try and help meet their needs and that means really getting to know them and understanding their business,“ he said.


“Bagnalls has been very successful, it has invested back into its various companies and also in property, which has given us the security we need. This has meant we have been able to support the group at a more generous level.“


The bank‘s relationship with Bagnalls demonstrates how it is prepared to work with customers to find a solution, especially where international trade opportunities are available.


Barclays‘ strong global network enables the bank to provide a range of support from funding the set up of new production lines in the Far East, to export services and providing FX capability.


Details: David Rushbrook 07775-543264 dave.j.rushbrook@barclays.com www.barclayscorporate.com


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