WERKMASTER FLOOR SYSTEMS
Phoenix’s Cardiff outlet is “300% up on 12 months ago and we’ve finally arrived in the capital of Wales.”
“For the first 18 months, we operated from a small unit and turnover and our fleet began to grow. We then took over another small unit on the same estate, and have since added a third, which now houses our workshops and stores. Business has grown massively and the Bridgend outlet now turns over £50,000/month. The business is entirely self-financing, as the growth in our fleet is financed by our growth in turnover.
“Rail industry contracts have been the backbone of this growth, with equipment like Atlas Copco Cobra breakers, with the swan neck tamping tool, specialist CAT cable avoidance tools, tripod lights and small generators. Because this rail work is, predominantly, undertaken at night, the equipment has to be lightweight and portable as it may well have to be carried as far as one mile up the track to where it is needed.”
Gary and Paul’s long term plan is to develop their partnership along the M4 corridor west to Swansea and up the valleys to Pontypridd, where a possible site has been identified for new outlet next year.
Finally arrived in the capital
In April 2011, Gary opened his second wholly-owned outlet in Cardiff. “For the first two years, it was hard to establish ourselves in the city, as it was dominated by the national hirers. However, the recession has made our competitors weaker. We are currently 300% up on 12 months ago and we’ve finally arrived in the capital of Wales. We now have a young and dynamic team in place, having just recruited Mark Harris, who was formerly with HSS in the city, and Dan Jones, who worked for HSS in Newport.
To some extent, Gary Derraven is following a similar strategy at Phoenix, based on planned, controlled growth, to that which he operated with Kingfisher. There aren’t many, if any, hirers that I recall, who have gone the independent, joined a national, and back to independent route. This innovative partnership with Paul Lewis is certainly an interesting development, and is obviously helping Gary avoid the ‘financial risk’ he faced with Kingfisher. If Gary can continue to develop his south east Wales network and, working with Paul, they can extend west to Swansea, we are likely to see Phoenix continue its rise.
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