FRUITFUL LIAISON
Two finalists from last year’s Bank of Scotland Entrepreneur Challenge have
teamed up in an acquisition backed by Bank of Scotland Corporate.
Fresh fruit and vegetable supplier Fresh Direct, based in Bicester,
Oxfordshire, acquired the Skelmersdale business Parkfresh for an undisclosed
sum after the company became aware of Parkfresh following coverage of the
regional finals in The Sunday Times.
“We did not know anything about Parkfresh and we were interested to see
another fresh fruit and vegetable business in the finals,” says Fresh Direct
managing director David Burns. “The fact that they had made it to the
regional finals suggested to us that they would be a good business. We
visited each other and saw how each company worked and, to cut a long story
short, by March we had acquired the business.”
Bank of Scotland Corporate provided Fresh Direct with extra funding for the
purchase and Parkfresh was renamed Fresh Direct Local (North West). The
acquisition made an ideal fit, says Burns. “It was just the right size, in a
great location for us and it fitted with our plans to focus on our strengths
as a specialist fresh fruit and vegetable distributor.”
Following the deal, the founder and former CEO of Parkfresh, Boyd Park, joined
the Fresh Direct board as business development director. “We did not have
the strength or depth in our management team to expand nationally, which
Fresh Direct did,” he says. “ We’re learning so much from each other. It has
been fantastic.”
Turnover at Fresh Direct reached £100m last year and, despite the economic
downturn, there is potential to grow at 10% over each of the next two years
as the company continues to improve its regional coverage, says Burns.
PLANNING AHEAD
Skilled management teams able to anticipate the challenges of growth and
deliver on detailed business plans will be the ones with the best chance of
winning the northwest and North Wales heat of the Challenge, according to
one member of the judging panel.
Patrick Loftus, a partner at accountancy firm Deloitte, who was a judge last
year for the north of England and North Wales region when the panel put
forward Daisy Communications, the overall winner for 2007, says
demonstrating the ability to plan effectively is a common feature of
successful companies.
“Everyone has a plan but not all of them are equal,” he explains. “Some of the
plans we saw in last year’s competition were surprising in their brevity. We
want a business that knows in detail what it needs to do with areas like
finance, marketing and HR as it grows. We’re looking for a business that can
show us what its plan was a few years ago - that way we can see where it’s
come from.”
And rampant egos, watch out. “It’s not all about the individual. A business
needs a leader but we are looking for a balanced management team that will
help give the business longevity and drive growth,” he warns.
After all that, it’s not surprising Loftus does not expect an easy time when
he meets the other judges on Thursday to select the regional winner. “Even
up to the last half-hour of judging last year we did not have unanimity, so
I’m expecting it to be as tough this year,” he says. “ The northwest and
North Wales have produced a fantastically varied shortlist. The field is
wide open.”
SIX OF THE BEST
The Challenge has provided a diverse collection of regional winners so far:
Southeast: Five Rivers Child Care, which provides specialist care services
for children in need. Pamela McConnell founded the company, which is based
in Fordingbridge, Hampshire.
London: FreshMinds, a recruitment and market research business. Charlie Osmond
and Caroline Plumb set up the enterprise in 2000 after graduating from
university.
Scotland: Vets Now operates out-of-hours and emergency veterinary care. The
Fife firm was started “as a calculated risk” by Richard Dixon, a former
Glasgow vet.
Southwest & South Wales: Wyke Farms is a family cheesemaker known for its
mature and vintage cheddars. Managing director Richard Clothier plans to
expand the business, based in Bruton, Somerset.
Midlands & East Anglia: Butcher’s Pet Care is beginning to outgrow its
base in Crick, Northamptonshire. The firm, chaired by Graham Baker, makes
pet food.
Northeast: Fusion Group, which supplies jointing systems to connect plastic
pipes. Kevin Raine, group managing director, is developing export sales and
says the Chesterfield company is “incredibly ambitious”.
WHAT HAPPENS NEXT
One of the seven regional winners will be declared the 2008 Bank of Scotland
Corporate Entrepreneur of the Year on December 3. In addition to their
interest-free funding, the overall victor will receive several days’ worth
of mentoring from a top UK entrepreneur - a prize which many of the entrants
have told Bank of Scotland Corporate that they value almost as much as the
finance.
A report on the grand final and an interview with the overall winner will
appear in the Business section of The Sunday Times on December 7.
KEEP CONNECTED
Stay up to date with news of the Challenge at www.timesonline.co.uk/entrepreneur
.
