MERCHANT FOCUS: JOHN NICHOLLS
Kidlington, and MKM Long Hanborough. The latter will provide extra yard and warehouse space to supply the other branches with a wider product offering.
Nicholls says that the decision to sell but also to go through the MBO, was down to wanting to keep the legacy of the Nicholls name and business going. “I wanted to carry the business forward. And I knew that we had a really strong team here who were also committed to continuing with the business.”
The Management Buy-Out leadership team now comprises: Nicholls, chief executive officer; Adam England, managing director; Sam Hall – commercial director; Dave Simms – operations director and Mark Walton – finance director. In addition, the board includes two directors of the J&B’s plumbing and heating merchant business based in Dorset, which Nicholls bought in 2014. Graham Bell – sales director and Jason Dark – operations director.
The central support office for both parts of the business, John Nicholls and J&Bs, remains in in Adderbury near Banbury, and there are roughly 135 people employed across the two parts, with a forecast total turnover of over £40 million for the financial year 2024, roughly a 50/50 split between Nicholls and J&Bs businesses.
“J&Bs is very much part of our plans for the Nicholls group moving forward,” Hall says. Having been a three-branch business when Nicholls acquired them, the J&Bs arm now comprises branches in Blandford, Branksome, Moordown, New Milton, Ringwood, Weymouth, Wimborne Upton and Christchurch. All, apart from
Upton, Moordown and Christchurch, feature Bathroom Solutions showrooms. The Nicholls branches are still in Banbury – there were two John Nicholls branches in the town, so MKM has the building branch at Overthorpe Road, and Nicholls retains the stand-alone plumbing and heating one on Dorcas Road -, Buckingham, Kidlington, Shipston-on-stour, Towcester and Witney. All apart from Buckingham and Towcester have Bathroom Solutions Showrooms. The Towcester showroom is, in fact, branded as the John Nicholls Luxury Kitchen & Bathroom Showroom, and opened in August 2022. “We took on that particular unit with the intention of it being a high-quality kitchen and bathroom showroom which we use to have at Overthorpe Road in Banbury,” Nicholls says. “Because it was on the site that MKM has taken over, that had to go. So, Towcester now features the John Nicholls blue and orange retail branding, and it was important for us that we find a way of retaining that.” England says that the board now plans to effectively get its head down for the next 12 to 18 months, in effect treating the business as a start-up.
“It’s important that we take a step back and really understand where we are. We’re treating it very much as though it is a start-up business, a new business. It’s about steadying the ship in the short term, and then looking at how we develop, and where we plan to grow the business,” he says.
The company will remain a member of the Fortis buying consortium, with Hall retaining his Fortis role as trading director for plumbing and heating
Last year Nicholls opened four branches, as if going through a sale and an MBO wasn’t enough. So, as England says, there are still four infant branches to develop, and part of the 18-month target is to get those up to their full capacity.
Nicholls adds: “Four branches in one year is not how we would normally have done things, bearing in mind the size of the business, and what was going on at the same time but you have to take opportunities when you can, if they are the right ones. We had good opportunities and so we made the most of them.”
The branch in Shipston-on Stour, for example was a small independent merchant where the owners were looking to retire. Hall says: “It’s a great little business so we brought it into the Nicholls group, and have now rebranded as a Nicholls branch. We also had an opportunity to take a unit over in Towcester, nearer to Northampton in 2021, a plumber’s merchants, and then we opened the
August 2023
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showroom alongside it last Summer. We’ve also added a unit in Weymouth, under the J&B’s brand.”
He adds that there will be further development of the business as it moves away from a mixed merchant operation to a more streamlined focus. “There will be a lot of business housekeeping, as we work on the legacy of a traditional family run business that we were all keen to take into the 21st century a bit more. There’ll be new ERP systems, new processes at head office; we want to become a paperless business, for example. These are all good things we all want to do.
“But it takes time. They’re not short-term projects, they’re longer-term projects, which will affect out bottom-line and our ability to continue to grow.”
For example, there will be a new computer system coming in, partly because it is time, the business having outgrown the existing one, and partly because what is currently in place is more geared towards a multi-faceted mixed merchant business than a specialise plumbing, heating and showroom operation. England says: “We’ve yet to make a decision, but that’s absolutely on the cards for next 18 months.
“Another project we’re very passionate about is launching our renewables division, training is taking place and supply partners have been chosen. This will be launched before year end.
“Longer term there will be more branches, as and when the time is right.” All the board agree that they are excited about continuing the develop the business and the name. “I didn’t want to lose the Nicholls from over the door, but that wasn’t just for me personally. I believe it’s important for our customers and colleagues to know that we are retaining the legacy, especially in Banbury where we started,” Nicholls says. England adds: “It’s also important that we send the message to the industry that, although we have sold part of the business, we are still an independent, family-owned business that’s excited about how we continue to develop. We can’t wait to get going and see where we can take the business.” BMJ
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