profile 57 There’s no smoke without entrepreneurial fire
What business qualities make an SME successful? We’ve been visiting various businesses to bring you some insightful case studies. This month it is the chimney and flue manufacturing specialist H Docherty Group – No 63 in The SME 100
Berkshire-based H Docherty Chimney Group began life 52 years ago, founded by Barry Moorcroft, the father of current MD Allister Moorcroft.
The company name is the maiden name of Allister’s mother. Barry had seen a business opportunity to buy and sell a new galvanised chimney cowl, and needed ‘a company’ to place a large manufacturing order.
Overnight H Docherty was formed and upon such astute entrepreneurial moves, allied to market nous and hard graft, today’s largest UK independent manufacturer and distributor of chimney and flue products was built.
Barry’s sales of his cowls led to requests for chimneys and flues. Allister’s father reasoned he needed his own manufacturing resource and soon partnered successfully with a Crowthorne firm.
Allister studied as an accountant and his father quickly drew him into the business. Allister’s first managerial advice was to rationalise H Docherty’s diverse factory and warehouse sites into one Newbury location. Ironically, demand from the Newbury agricultural community significantly boosted sales.
“We decided to grow the manufacturing business, so bought a company in Surrey called New Vent Distributors. That brought additional markets and a fresh business model, selling B2B using local distributors. It’s what we have done ever since,” explained Allister.
Further acquisitions followed, extending H Docherty’s distribution channels for leading brands and importantly its own specialist complementary products to the London, Midlands and Yorkshire areas. “A lot of our products have been developed from listening to the market, providing what installers tell us they want, or meeting new legislation requirements.”
The purchase of a Glasgow company opened up the Scottish market and provided a new flexible flue product. This sold well in southern England, so manufacturing was re-focused on H Docherty’s head office site near Newbury.
“We have simply been opportunists really. THE BUSINESS MAGAZINE – THAMES VALLEY – SEPTEMBER 2012
Working closely with local distributors and knowing the overall market, when we see an opportunity we have just taken it,” said Moorcroft. Others would call it entrepreneurial flair or the fire of ambition.
Today, H Docherty sells all its products via distributors by next-day delivery, none are available online. However, a web-linked contracts department was formed in 1999 to specialise on commercial chimney design and installation throughout the UK.
Earlier this year, H Docherty completed the acquisition of MMF, one of its main competitors, virtually doubling the size of the company. This was no purchase simply to remove competition. As with all H Docherty acquisitions, it was a move to improve, strengthen and grow the company.
The deal has brought the financial stability of a combined group turnover exceeding £20 million and a dramatically enhanced UK geographical distribution network via 11 branches. “We saw MMF as a perfect jigsaw fit for our business.”
“In today’s environment, particularly as distribution costs rise, we increasingly need a local presence to provide the best customer service in terms of product availability, product knowledge and expertise.” For similar reasons, Docherty’s manufacturing is now based in Leeds, Birmingham and Newbury.
The Docherty Group hasn’t grown successfully just by acquiring companies. It has assiduously acquired knowledge and talent too. The group now has a wealth of industry experience, 140 staff, and a management team comprising some of the industry’s leading experts.
When H Docherty merged with Devon- based Independent Components in 2010, it gained West Country distribution, but also Patrick Simpson, now Docherty’s sales director.
When the biomass and solid fuel industry required HETAS registered operatives, the Docherty Group set up its own training centre and persuaded the industry- respected Mick Walmsley to become its technical training director.
David Price, former CEO of Elta Fans, is the group’s finance director. The recent MMF
Allister Moorcroft
acquisition has brought experienced sales director Phil Mangnall to Docherty’s board.
Now the Docherty Group is spreading its entrepreneurial wings again and distributing leading edge products for 21st century lifestyles. It has formed a new division – Edina – to serve the environmentally conscious (and increasingly cost-conscious) alternative energy market.
“We are bringing in Jydepejsen wood- burning stoves from Denmark which are used throughout Europe, Lohberger cookers from Austria, and Italian stove- boilers – wood-pellet technology as opposed to costly oil, gas or electric.”
“We’ve already seen increasing product demand due to energy price rises. We see growth in this renewables market and in thermal heat stores – future homes will not have single-source heating systems.
“We don’t really know where it is going to take us, but we have started the journey. There are fresh renewables products coming along all the time and we are flexible, willing and able to change quickly to grab the opportunities.” It has been ever so for H Docherty.
Docherty’s SME-to-SME advice:
• Understand your market and stay close to your customers
• Never be frightened of change. Control your destiny. Become involved in matters affecting your future. (Docherty Group is an active member of the British Flue and Chimney Manufacturers’ Association)
• Look outside your business. Learn from the way other people approach business.
www.businessmag.co.uk
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