Excellence is the driving force behind Adams Morey
Founded in 1952, Adams Morey has grown to become one of the most successful commercial vehicle distributors in the UK – it is 30th in the Solent 250 list and has eight dealerships. Sue Hughes spoke to MD Mike Fennell and FD Mark Marshall
The wording is intentional when this truck dealer is described as driven, because passion for excellence in every area is paramount. Yet it is not so large that MD Mike Fennell, a vehicle engineer by background, cannot visit the dealerships and feel at home when greeted by all of the dealer teams.
regulations are more expensive, as with all other truck manufacturers, so customers bought forward in 2013 which will make it a tough year for sales. Adams Morey has some 400 brand new DAF vehicles parked around the country to Euro 5 specifications, all set to be delivered in 2014.“
Marshall added that in December 2012 Adams Morey had £4m of vehicle stock, compared to ending last year (2013) with £15m, therefore a change of emphasis in customers’ buying patterns as a result of the Euro 5 run-out is highly evident. “Having said that, we are receiving a lot of interest in Euro 6 due to operators wanting to work towards green emissions. The brains of a truck is now in the exhaust system and engine which are in constant communication with each other to ensure clean burn emissions. We are volume optimistic, but margins are still tight.“
Mike Fennell (left) and Mark Marshall
Although Adams Morey, with its head office based at Redbridge deals with heavy commercial vehicles, it has diversified successfully. The Van Centre at Millbrook also welcomes cars with a ’while you wait’ option for service for tyres, exhausts, batteries, MOTs and more. Adams Morey began selling trucks in 1973 when DAF first came in to the UK market and now has DAF and Fiat sales and after-sales franchises across the south as well as being a recognised Ford parts and service dealer.
Adams Morey decided to redefine what being a truck dealer was all about and commit to the highest quality of product and service in the belief that if this gave value to the customer, it would be successful as a business. That commitment paid off and it now employs 300 people dedicated to commercial vehicles, operating from eight locations, with a turnover of £75 million.
Fennell is a naturally optimistic person, but sees 2014 presenting a challenge with legislation: “The legislation on emissions has affected our business; we can feel the difference coming in now. All vehicles equipped with a diesel engine will be required to substantially reduce their emissions of nitrogen oxides via the Euro 6 standard. DAF trucks which comply with Euro 6 emissions’
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2013 was the first full year of integration for the company’s newest acquisition, the Basingstoke truck servicing facility, which has undergone a period of adjustment and adaptation to the Adams Morey culture.
“We are not actively seeking further acquisitions, at this stage,“ added Marshall, “but are always looking at what might come our way and developing new business, whether supply or servicing.“
One example is that as a supplier to local authorities, the company has worked with Dorset County Council for a decade, providing parts, and will tender for this work when it is due for renewal. The established relationship has led it to look at the Borough of Poole and other similar opportunities. Profit is re-invested back into the business, most recently for new MOT lanes in the Portsmouth dealership and it is considering a Vehicle and Operator Services Agency (VOSA) test facility at Redbridge.
A UK market leader in six-ton plus truck registration for DAF, year on year, for the past 18 years, Adams Morey compares strongly with all other regional competition and has fared well following the banking crisis of 2008, having demonstrated its solid base and building trust within a generally more nervous banking environment. “No one is offering anything significantly different in banking, but we recognise our customers may have cashflow issues. If that is the case, we try and renegotiate
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2014
if possible, perhaps with a restructured payment plan. Our approach is firm, but fair.“
Passionate about training, Adams Morey took on seven apprentices last year and loses very few staff as they progress within the company. “We spend well in excess of £200k annually on training and we’re proud of what we do. An ex-apprentice now runs one of our dealerships and Mark has identified one of our IT team who has transferred to the accounts department and is currently working through the CIMA route,“ said Fennell. “A skilled workforce is a valued commodity and rather than lose skills, we would prefer to work harder to control costs.“
Nowadays a truck engineer still gets his hands dirty, but is equally clued up about what goes into a Euro 6 truck’s technology. “Technicians need similar skills to those anticipated from our IT department now to repair trucks,“ continued Marshall. Together with his MD, they are a formidable – and ego-free – partnership. Marshall’s finance and business overview role enables Fennell to be ’out there’ as the face of Adams Morey, driving new business.
“Our current learning curve is all about integrating our day-by-day activities with those of our customers and forming working partnerships. IT helps the information and process exchanges and these are exciting times. Future milestones may well be less to do with opening new dealerships, as we are quite thick on the ground in the Central South, and more to do with opening the communication with our customers to give a wider range of services and offer ever more value.“
Pulling no punches about how the current government could aid businesses, Fennell concluded: “It needs to get real – it is totally out of touch with reality.“ Marshall, meanwhile, added: “Politicians could do well to get out and meet real business managers like Mike and see what they are facing every single day.“
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