NORTH WEST TOP 500 COMPANIES
There's a new leader at the top of our list PLUS profiles on key companies read
There's a new leader at the top of our list of the region's best corporates. We profile Pilkington and present a small run down on a selection from the list
1
Pilkington
The St Helens-based company has developed self cleaning glass - a nano-technology innovation which promises to be an unwelcome pane for the squeegee business.
The product, Pilkington Activ, is ordinary glass with a special coating on the outside - so thin that it's the equivalent of raising the height of the Empire State Building by placing a £31 coin on top of it. Once exposed to daylight, the coating chemically reacts in two ways: first, it breaks down any organic dirt deposits; and second, rain water runs in 'sheets' rather than drops down the glass, washing away the loosened dirt.
This commitment to innovation and technology gives Pilkington the resilience to compete in difficult times and exploit opportunities as they arise - a quality illustrated by the dramatic doubling of its share price in six months.
This spirited performance is underpinned by a strong set of half yearly results which record turnover of £31.4 billion in the six months to 30 September and operating profits of £398m - an increase of £311m on the figure for the first half of the previous year.
"Pilkington's strategy has three clear stages," says chairman, Sir Nigel Rudd. "First, to continue to improve operational performance; second to generate cash to strengthen the group financially; and third to invest in growth.
"The benefits of extensive restructuring over the last six years are evident in our improved operational efficiency and robustness. With Pilkington currently in the second stage of its strategy, demonstrating our capability to generate cash, we are in a good position to withstand the testing trading conditions which we expect to continue."
This does not mean battening down the hatches, as Pilkington illustrated by announcing an ambitious joint venture to build and operate a float glass plant in Moscow. The plant, which will have a capacity of about 240,000 tonnes per year, is expected to come on stream in 2005.
"This represents our first step in establishing a growth opportunity in Russia, an important expanding market for glass," adds chief executive, Stuart Chambers
64
Topps
Turnover: £3152.21m PTP: £323.55m
Topps, the UK's biggest specialist ceramic tile group, continued to floor competitors with another year of powerful growth, fuelled by the popular obsession with home improvements.
The Wilmslow based tile and wooden floor business chalked up a turnover hike of 22.4 per cent, up to £3152m from £3124m in 2002, while like-for-like sales increased by 14.3 per cent.
Nor is the company resting on its laurels - the first seven weeks of the new financial year saw turnover increase by a further quarter, with like-for-like sales showing a 15 per cent rise.
With the opening of 25 new stores, UK market share of 17 per cent, and a retail market forecast to grow by 18 per cent over the next three years, Topps has good reason to celebrate with a night on the tiles.
Not content to remain a domestic player, the company is involved in a joint venture in Holland, where eight stores are up and running. Topps is also investing in a £37.8m purpose-built warehouse due to open later this year.
"Our strategy remains simple: to provide excellent value, choice and service to our customers," says chief executive Nick Ounstead. "We are confident that the fundamental strengths of our brand and the proven retail concept will enable us to continue delivering profitable growth for the benefit of our shareholders in the future."
The group employs more than 1,300 staff and encourages participation in its success through employee share option schemes and a culture of rewarding performance.
Staff training is a key feature of a teamwork policy aimed at boosting efficiency, while bonus schemes have generated over £35.4m in profit sharing for staff.
"Our policy of 24 new store openings per year, coupled with our commitment to promoting from within the business, allows staff to develop career paths and helps nurture an atmosphere of opportunity for all," adds Ounstead.
"We will continue to build on the proven appeal of the 'Topps' and 'Tile Clearing House' formats which provide a secure foundation for the successful future expansion of the group, and remain confident we can continue to grow the business and deliver further strong financial performances."
73
CHESHIRE BUILDING SOCIETY
Turnover: £3168m PTP: £311.2m
Remaining mutual has given the Cheshire Building Society freedom to prosper without the shackles of 'shareholder slavery'.
Take, for example, the Cheshire's new savings-linked alternative to private medical insurance, and its headline-grabbing 25 year fixed-rate mortgage, which is just what the chancellor ordered.
"Research supports the notion that there is a market out there for this product and judging by the increased number of enquiries we've had, more and more people are looking at this as a serious option," says marketing director Jason Gaunt.
With around 1,000 staff and assets of more than £33.5bn, the Cheshire is a formidable player, with an appetite for further growth. Ranked 11th out of the UK's 65 building societies, the Macclesfield-based society has 51 branches across the North West.
A range of new services, including a fully-integrated e-commerce operation and call centre, have now effectively widened its market to national proportions.
"The Cheshire is focused on delivering the benefits of mutuality to its members. Since we don't have a single shareholder to please, we can concentrate on delivering more services to our members," says Gaunt.
"An example of this is our decision to defy the demise in financial retail outlets and open a branch in Manchester, at the centre of our regional branch network."
Gaunt believes the Cheshire is well placed to meet a number of challenges facing the industry, not least a greater regulatory burden which will increase pressure on lenders generally and smaller operations in particular.
"A review commissioned by the Treasury recently highlighted the dual pressures on the industry of providing discounted mortgages demanded by new customers on the one hand, while on the other fulfilling the desire to see more long-term fixed-rate mortgages as part of generating long-term stability in the economy," comments Gaunt.
A further challenge is how lenders can best serve first-time buyers struggling to get a foot on the housing ladder following the recent dramatic hike in property prices.
With official research suggesting that 39,000 new homes will be needed annually to keep pace with the UK's population growth, this is an issue which the Cheshire will no doubt address with its customary relish for boldness and innovation.
80
THWAITES
Turnover: £3136.92m PTP: £312.39m
Thwaites - the UK's seventh largest brewery - remains a fiercely independent family-owned company.
Describing itself as 'vertically integrated' - which is perhaps more than can be said for some customers after a few pints - the Blackburn firm combines a state-of-the-art brewing operation with a long and illustrious history.
Founding father Daniel Thwaites brewed his first pint back in 1807 - just two years after Nelson had scuppered Napoleon's invasion plans at Trafalgar and eight years before Boney got the order of Wellington's boot at Waterloo.
With a fully-automated brewery, which nonetheless includes traditional open fermenters, Thwaites has a formidable pub estate, comprising 420 premises, and a fast-expanding free trade operation currently standing at 800 outlets.
The take-home division deals with national supermarkets and major off-licence stores and there is a thriving export trade, while the prestigious Shire Hotels chain also forms an important part of the Thwaites' empire
"In spite of difficulties in the British brewing industry over the past few years, we have managed to maintain steady growth," says Brian Hickman, deputy managing director. "Our trading area, tied and free, now spreads far beyond the traditional Lancashire heartland and covers a huge geographic region across the North West of England from Birmingham to Carlisle and Bangor to Sheffield."
Using natural ingredients, Thwaites brew cask Thwaites Bitter, nitro Thwaites Smooth Beer and Kaltenberg lager, as well as boasting an impressive portfolio of beer brands which includes national bestsellers. The company also has an operational capacity for substantial contract work - such as packaging, canning and bottling - for other breweries.
"We provide a complete route-to-market package, from the initial brewing process through to distribution and delivery. Additionally, there is the in-house support of expert technicians who help to maintain customer service at the highest level," adds Hickman.
"The company motto 'Progress with Tradition' perfectly portrays the philosophy of a brewery immensely proud of its independence, its heritage, and its 21st century outlook.
Our founder, Daniel Thwaites was single-minded in his quest to brew the perfect pint and establish Thwaites as a major national player. In our view, both have been achieved."
202
ETHEL AUSTIN
Turnover: £3122.13m PTP: £31.06m
At a time when we are awash with pretentious corporate monikers and branding devices, there's a life-affirming freshness about a plain old fashioned business name.
Ethel Austin has the ring of an unremarkable outlet where frail old ladies might have forked out a few coppers for wool during the great depression. Which is precisely how the business started.
Now, as Ethel Austin's directors - all born and bred on Merseyside - prepare to celebrate the firm's 70th anniversary, they are acutely aware of how far the discount clothing retailer has come since it opened as a single shop in north Liverpool.
The business is now a national operation, employing 2,500 people at more than 260 outlets across the country, and rumoured to be in the sights of a high street colossus following record sales and another hike in profits.
Operating profits more than doubled in Ethel Austin's first full financial year following a £355m buyout in June 2002, funded by the Manchester office of Lloyds Development Capital.
Profits increased to £312.5m in the year to August - a rise of 158 per cent on the previous period, while turnover rose by more than 13 per cent to a record £3138m. Like-for-like sales over the same period were up by 8.3 per cent.
The success of outlets with particularly strong community ties - so-called 'neighbourhood stores' - have been central to the firm's performance.
Arguably the chain's trump card, these stores represent a distinct point of difference and are seen as especially significant as the battle for dominance in the value sector intensifies.
Phil Hoskinson, who lead the buy-out team, believes Ethel Austin's founding principles of traditional value for money, harnessed to a dynamic and flexible business strategy, will continue to deliver results.
The development of current childrenswear and underwear ranges, in tandem with new lines, will be another key factor.
"What we have managed to do is add the essential elements of the independent trader - speed, responsiveness and entrepreneurial flair - to the professionalism which Ethel Austin has always had," says Hoskinson. "It's that blend which makes us more able to exploit market conditions to our advantage and is at the core of our success."
323
SALFORD VAN HIRE
Turnover: £337.63m PTP: £32.23m
Salford Van Hire is arguably as much a part of Manchester life as Boddingtons bitter and Piccadilly station - the distinctively liveried orange vans are instantly familiar across the city and, indeed, the region.
Yet this popular perception forms only part of the firm's story. Formed in 1965 by Raffaello Bacci, Salford Van Hire has grown into a multi-million pound turnover business, with contract hire services for blue-chip companies sitting alongside the traditional 'spot rental' operation.
"Our business reflects the economy generally and we're definitely seeing a return of confidence," says Alessandro Bacci, Raffaello's son, who plays an increasingly important part in the running of the family-owned company.
"If people are certain of the future, they'll look at contract hire deals of three to five years and long-term rentals of spot hire vehicles. If things are less certain, they want to do business on shorter term agreements. Naturally we prefer longer-term contracts, but we're flexible - that's our strength. We can meet any economic conditions and adapt our services as necessary."
An important development for Salford Van Hire in recent years has been the growth of its business with big third-party logistics providers, which service national retail chains. Although the logistics firms have significant fleets, they see a commercial benefit in using a rental operator like Salford Van Hire to cover peak periods.
"It works well for them and for us," says Alessandro Bacci. "It keeps their capital costs down and we have the stability of hiring out vehicles for longer than normal rental periods, sometimes up to 12 months."
With a turnover of £340m, a fleet of some 6,500 vehicles, and depots in Manchester, Salford and Leeds, the future is promising for the company that pioneered the concept of van hire. Competition is fierce from both manufacturers like Mercedes and Scania at one end of the scale, to the small rental operators at the other.
"What Salford Van Hire offers is a combination of both," adds Alessandro Bacci. "As the cliche goes: 'big enough to cope, small enough to care' - and in our case, it's true."
376
SURFACE SPECIALITIES UCB
Turnover: £3160.75m PTP: £318.96m loss
It's a wrap for Cumbria-based Surface Specialties UCB, whose high-tech coated films are used to protect everything from butties to banknotes.
The company employs 950 staff at its 60-acre Wigton site - a centre of operations for almost 70 years - producing 14,000 tonnes of Cellophane and 60,000 tonnes of polypropylene annually.
Over the last decade around ?135m has been invested at Wigton, where production facilities include 11 polypropylene 'bubbles' and five Cellophane casting lines, supported by three state-of-the-art coaters.
UCB has developed a wide range of speciality films, providing protection for perishable foodstuffs, and shelf-appeal for durables such as toiletries, magnetic media, tobacco, beverages and cosmetics.
The company also makes a high-tech anti-counterfeiting product which is used by around 20 countries, including Australia, New Zealand and Romania. Banknotes issued on UCB material makes them more difficult to forge and produces exceptional resistance against soiling and crumpling. In addition, the notes are waterproof and can be recycled.
UCB's Cellophane products include brightly coloured confectionery twistwrap films for household name retail brands, semi-permeable films which allow baked goods, yeast and unpasteurised cheese to 'breathe', and heat-resistant films for microwaveable fast foods.
Fully biodegradable grades of cellulose film for food packaging, which help tackle the burgeoning problem of waste disposal and handling, also form an important part of the product range.
The cornerstone of the business' success is its strength in research and development, which has made it a formidable contender in the marketplace. A new R&D centre, opened in 2002, underscores this policy.
"Over the years, substantial research and development facilities have been established to maximise the attributes of our products," says Frank Aranzana, global business unit director. "UCB spends five per cent of turnover on R&D - a concrete expression of our commitment to innovation and differentiation."
The Wigton site is part of a global operation, with 62 per cent of revenue coming from Europe, 27 per cent from North and South America, and 11 per cent from the Asia-Pacific region. The group employs around 8,000 people globally, has a turnover of almost £32.5 billion, and has grown its profits annually by more than 20 per cent over the last eight years.
396
WALKER FARRIMOND
Turnover: £342.45m PTP: £30.76m
The managing director of motor dealer Walker Farrimond is fond of paying lip service to customer care - literally.
Duncan Farrimond, who presides over a motor dealership business spanning a large chunk of east and central Lancashire, routinely uses his mobile to talk to punters with problems.
In addition, Farrimond personally reads all pre-paid feedback forms from people who have bought a car or had a vehicle serviced.
This systematic micro-management of the core customer base is at the heart of the Nelson-based company's success in a highly competitive marketplace.
"We do particularly well at brand recognition," says general marketing manager Guy Flintham. "For a company of our size, it's important to develop the business, but also to be aware of our traditional roots as a family-type company.
"A lot of motor groups are big anonymous plcs and we believe Lancashire people recognise and appreciate a more personal relationship. Our motto is: 'privately owned, long established, forward thinking', and we are very conscious of these values when we are doing business."
Formed more than 20 years ago by Matt Walker, the dealership now comprises six brands - Citroen, Mazda, Nissan, Peugeot, Mitsubishi and Volvo - and employs more than 150 staff at showrooms in Nelson, Preston, Blackburn, Accrington, Burnley and Bury.
Flintham believes the traditionally fragmented car sales market has polarized in recent years with car supermarkets going head to head with traditional dealers.
"Have we suffered as a result of car supermarkets? Yes, I suppose we have, but nowhere near as much as some people would like to think," says Flintham. "It's often thought that car supermarkets are very cheap, but in reality the price difference isn't that great.
"Also, buying a car is the second largest investment most people make and they appreciate being dealt with as an individual with individual needs, before and after the purchase.
"We are a Lancashire company and are very focused on looking after our customers," adds Flintham. "This is about quality service, but also being part of the community through a range of activities including charity events, sponsorships and community-based activity."
463
CHRISTY HOME TEXTILES
Turnover: £329.50m PTP: £31.77m
Christy Home Textiles, the UK's largest towel maker, is anything but wet behind the ears when it comes to exploiting niches.
With a pedigree stretching back more than 150 years, Christy products were sufficiently upmarket to impress Queen Victoria at a time when Britain was the 'workshop of the world' and King Cotton called the tune.
In terms of quality, little has changed, with the Hyde-based business officially supplying towels to the Wimbledon tennis championships and the 2002 Commonwealth Games in Manchester.
Christy products can be found in leading UK department stores, while the company exports to lucrative markets through subsidiaries in Germany and the USA, where it is a major supplier to Bloomingdales, the top people's store.
Christy's plain dyed towels are woven in a traditional Cheshire mill, and the brand includes jacquards, embellished towels, children's towels, and bath robes.
The business was acquired in 2000 for £315m by a buy-out team led by managing director Joel Rosenblatt, from former parent Courtaulds. The deal was backed by Lloyds TSB Development Capital, which exited in January, generating a return of 40 per cent on the initial £34.5m majority-stake investment.
With turnover of £329.5m and operating profits of almost £32.7m, the company is now strategically poised to consolidate and enhance its market position.
It all started in the1840s when Henry Christy returned to his native North West from a visit to Turkey, where he had obtained permission to look through the Palace of the Sultan in Constantinople. The prize he brought back to Britain was a sample of 'loop pile' fabric, which was new to the western world.
In 1851 his brother, Richard, solved the problem of mechanically reproducing this cloth and the Turkish towel was born. The first towels were shown at the Great Exhibition of 1851 at Crystal Palace. Later that year a set was presented to Queen Victoria, who promptly ordered extra supplies.
Of course, massive changes have since redefined the textiles industry, yet despite history's upheavals, Christy's tradition of success remains as strong in the 21st century as it was in the 19th.
496
BROOKHOUSE
Turnover: £328.14m PTP: £31.73m
Founded by Fred Turner in Blackburn in 1951 as a four-man operation making wooden patterns for the foundry trade, Brookhouse has evolved into a leading edge aerospace engineering business.
Over the years, the company's skills and expertise have been employed in aircraft ranging from the historic Canberra bomber to the Eurofighter Typhoon, and from Concorde to the Airbus A380.
The firm, now based in Darwen, has successfully exploited a niche in the aerospace industry as a result of its traditional skill base and geographical location close to major aircraft manufacturing operations in the North West.
Brookhouse focuses on high integrity composite assemblies, operating from sites in Darwen, Tameside and Huntingdon. The business has also built an impressive international customer profile, including Formula One motor sport, telecommunications and simulation technology.
Run by Peter and Barry Turner, the two sons of the founder, Brookhouse employs 550 highly skilled staff.
A recent substantial investment in a new composite facility, coupled with significant increase in demand for its products in the aerospace industry places Brookhouse in pole position to exploit a growing market. The group's tooling operation is similarly well placed following major investment in a 5m x 2.5m five axis machining centre.
Quality continues to be fundamental to Brookhouse. The company has all the accepted quality accreditation and was among the first UK companies to be approved to ASEN9100:2000. This is a business process-oriented standard which takes into account the special procedural requirements critical in the aerospace sector.
Subsidiary Brookhouse Composites was the first composite structures manufacturing company in the country to be audited and approved to manufacture aircraft components which are accepted by all the 30 or so countries that form the Joint Aviation Authority.
"A proven combination of traditional skills and state-of-the-art technology, supported by a rigorous quality philosophy, has allowed the Brookhouse Group to succeed and grow in its traditional markets while diversifying into other sectors," says Peter Turner. "The company's commitment to on-going investment in people and plant will ensure that this success continues."
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