24 WP Group – number 18


Untapped market offers growth opportunities


The family-owned WP Group (WP) has transformed from a traditional fuels distributor 16 years ago into a fully-integrated fuel, lubricant and engineering services company – offering technical consultancy, engineering services, emergency 24/7 supply and advanced product solutions. With a £130 million annual turnover and ranked number 18 in The Business Magazine’s Solent 250, managing director David Fairchild has a clear vision for stealing a march on the big multi-nationals in the market place – and working in partnership with one of the most recognised global brands while retaining its family-owned culture is key


David Fairchild revealed: “Our vision is that within five years WP will be seen as a specialist in a number of different market places with an integrated fuel, lubrication and engineering services offer. WP won’t divorce from its core business but growth will come in niche markets.”


Fairchild is one of the leading businessmen in the UK oil distribution industry with a 50-year family history in the business. His mother and father set up Minister Fuels with just one driver back in the early 60s. After moving away from the industry for a short period the Fairchild family then bought Wessex Petroleum (WP Group) in 1999 as an MBO. In those early days there were 22 staff and six fuel tankers. Since then WP has undertaken a number of acquisitions and expanded organically. The company, based at Hythe, Southampton, now has 150 staff across eight locations stretching from West Dorset to East London supplying fuels and lubricants.


Fairchild explained that the past 15 years have seen huge consolidation at their level, with the market place currently dominated by two national players. “Where there were 15 fuel distribution companies within a 30-mile radius, we are now one of probably only three of any consequence in the Central South and South East region.


“Competition is one of our www.businessmag.co.uk


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2016


biggest challenges. Future growth for us means being inventive and offering something different in the marketplace. What we are trying to create is an integrated approach for those customers seeking a one-stop solution.”


So across individual companies WP can be a fuel and lubricants supplier, a sustainable partner and provide a fuel quality/ management regime. With this offering Fairchild believes WP can tap into significant new fuel- related markets with a number of different applications.


One sector in particular seems a perfect fit. “Companies which have a critical need for power 24/7 are taking us into all sorts of new arenas. In the event of a power shortage, blue-chip


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companies, utilities and major financial centres would all need critical power backup and that usually means diesel- powered generators. Fuel has a shelf life and without a quality management plan to ensure it’s not degrading, companies could get to a point where they want to fire them up and find they don’t start. That could be highly embarrassing and expensive. That critical market place is massive and our competition is not innovative or flexible enough to respond to it.”


On the back of this WP sees specialised synthetic lubricating oil and technology as crucial to organisations which have subscribed to a sustainable agenda. As one of only three appointed Mobil lubrication oils


distributors in the UK, WP has the backing of a powerful brand, crucial to extended asset care. “Expensive assets really should be given the best possible chance to live out their life to the maximum. We can demonstrate that by spending a little more on the right lubricant you save more because your asset will run more efficiently, more reliably, for longer and with less downtime.”


And Fairchild believes their Solent headquarters provides the perfect location for this integrated vision. “Hampshire is the second-strongest localised economy in the UK, and its proximity to London and the opportunities provided by the ports cannot be under- estimated.


It is dynamic and has


some unbelievable businesses here. We are proud of being in the top 20 of the Solent 250 – these are exactly the businesses we want to engage with.”


But in a competitive industry Fairchild knows success also lies in its company culture. “We work hard to be the ‘go-to’ regional alternative to the major suppliers. Customers prefer us because we are local and offer a superior service – they don’t have to speak to a call centre, if they want a delivery at a particular time we can help, and if they have a complaint they know it will go to the MD and they’ll get a reply. You don’t get this service from a national supplier,” concluded Fairchild.


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