NEWS | Round-up VIEWPOINT How to manage and


protect your business KBSA national chair Richard Hibbert on how retailers need to manage their businesses to avoid potentially disastrous oversights


Another bumper year for Howdens


TRADE KITCHEN juggernaut Howdens has chalked up another bumper year with pre-tax profit 55% ahead of pre-Covid levels.


In its latest annual results, Howdens saw revenue grow to £2.3 billion in 2022, 10.8% ahead of 2021 and 46.4% ahead of 2019. This was helped by a record sales performance in the autumn peak trading period.


ALL SMALL businesses face the same issue, limited resources to deal with the amount of paperwork, legislation and insurance that is required to keep a business running smoothly, and ensure it is protected when things go wrong. Traditionally many KBB retailers that were husband- and-wife teams will have operated on goodwill and a handshake to confirm a deal. Unfortunately, this is no longer adequate in today’s business world. One of the first issues is knowing what it is you need


to protect your business. From cyber-security to data protection and insurance, there is a wealth of paperwork that can be overwhelming.


Goodwill and a handshake are no longer adequate in today’s business world


Big businesses have departments to cover all the legal work, insurance, HR and IT requirements that every business needs. To be successful, a small business must find a way to access these services that is affordable, and ensure they are relevant for them. If these areas are ignored through lack of knowledge, time or because of the expense, then it can lead to serious issues, which could even bring a business to the brink of closure, with just a modicum of bad luck. The objective is to manage available resources and bring in expert advice and services in order for business operations to flow without hindrances, so that the business can remain on track to achieve its goals. For a KBB retailer there are many relationships that need to


be covered by a contract – with suppliers, subcontractors, and clients. Generating the documents to handle these relationships, including how to set them up and terminate them, and to properly and professionally deal with any issues that may arise while the contract is ongoing and thereafter.


Bad or late payers may be something that KBB


retailer will experience more as the cost-of-living crisis continues. Knowing what actions to take and what laws apply is important if monies are to be recovered. All KBB retailers should be aware of their obligations under the Data Protection Act 2018 and UK GDPR, as failure to do so can lead to criminal and civil penalties. The above are just a few of the key issues that need to be considered, there are many more, as every part of a retail business requires protection. KBSA members have access to a comprehensive online service, provided at no extra cost within the membership, that covers all the legal documentation that may arise as part of running a business. There is free access to fact sheets, legal documents templates and videos. All the key areas of business are covered including employment, property, tax, health and safety, data protection, cyber-security and intellectual property. Similar services are available for non-members.


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The company opened 30 new depots in the UK, bringing the total to 808. In France, 25 more were opened, making 60 in total, and five new depots were opened in Ireland. Howdens also introduced 21 new ranges, and these made up 22% of UK product sales in 2022. Howdens is also very likely to see its HMRC bill slashed thanks to the UK Government’s Patent Box Tax Relief scheme – an initiative that allows companies to benefit from investments made in intellectual property, which includes product innovations.


In 2017, Howdens patented a new adjust- able cabinet leg that is now used in many of its ranges. It is now claiming for this product under the government scheme. If successful, and the company is very confident it will be, the tax bill for 2022 will be £31.6 million – compared with £75.8m for 2021. This represents an effective tax rate of 7.8% for 2022 compared with 16.7% without the patent box claim.


CEO Andrew Livingston said: “Howdens delivered a strong performance in 2022, with


good progress on executing our strategic priorities and further market share gains. During the year our teams have been adept at navigating the challenges of high inflation and supply chain disruption, while supporting our customers


with a market leading product


range, high stock availability and outstanding customer service.


“Our markets are large and fragmented, which gives us a long-term opportunity for growth. In response, we are continuing to expand our depot network, improve our product range, optimise our manufacturing and supply chain, and develop our digital capabilities. We see potential for around 1,000 depots in the UK and we are now selectively expanding our business model internationally in France and the Republic of Ireland. Our robust financial position underpins our strategy, funding investment in our growth initiatives.”


Job losses as bathroom brand moves production to Yorkshire


SHOWER TRAY manufacturer Traymate is warning of job losses as it moves its factory from Essex to Yorkshire, blaming a lack of suitable space as its current location. The company is relocating from its current site in Purfleet, Essex to Firm Mills in Huddersfield,


West Yorkshire. All its 24 employees have been offered roles in the new site but acknowledges ‘this will not be possible for all’. In March 2020, Traymate was acquired by Yorkshire-based Hartford Holdings Group, the parent company of Trojan Baths, Mantaleda Bathrooms and Thomas Crapper. The group decided to bring the manufacture of all shower trays to Huddersfield after the landlord of the Purfleet site decided to redevelop the existing buildings.


The company said that while alternative sites local to Purfleet were considered, the search proved difficult and the landlord’s decision meant the move was time critical. Production will come to a close in June 2023, with a natural handover to the new site in West Yorkshire that the company says will avoid any supply issues. Hartford Holdings owners, Adam and David Mosley, announced the difficult decision to staff in mid-February. Adam Mosley said: “Due to the planned redevelopment of the current Traymate site in Purfleet and a lack of viable alternative premises readily available, it became an unavoidable situation. It was important to David and I that we announced the plans personally and face to face with the employees. We have offered redeployment but acknowledge that this will not be possible for all. However, all employees have been offered an enhanced redundancy package to help with the transition from Purfleet to Huddersfield.”


• April 2023


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