Having become one of Glasgow’s most established family-run timber and builders’ merchants since its creation in 1970, Kelvin Timber is now in the process of writing the next chapter in its already impressive history having recently completed a management buy-out (MBO).
The company, which has two branches in the west of Scotland – one in Milngavie and another in Hamilton – has been supplying timber, decking and building goods to the construction industry for over 45 years having been set up by brothers Frank and Vincent McHugh.
Kelvin Timber officially underwent the MBO with the help of Scottish accountancy firm, French Duncan, with the new owners being Frank’s son, Richard McHugh, who has been involved in the business since the age of 15 and has taken on the role of director, and the company’s existing Managing Director, Mark Maginnis, who has worked at the business since 1994.
“The MBO proved to be a really straightforward process and now it’s all done and dusted we’re really looking forward to embarking on the start of an exciting new era for the company,” explains Mr Maginnis. “Although we don’t intend to make significant changes, we have identified subtle modifications with the aim of facilitating growth and driving performance.
“In the short term we want to get our feet under the table and keep everything ticking over but looking further ahead we obviously want to increase our sales, turnover and productivity across the two branches, so we’re currently looking at the various options available to us.
“We’ve got an excellent core of regular customers in our trade section and we’re also quite well known in Glasgow with the general public, so we get our fair share of that business too. We want to not only maintain that but also grow further through increased investment. For instance, we’re looking to add to our fleet so that we can enhance our service provision, by adding next day and same day delivery options. It’s all about being as competitive as we possibly can.
“The MBO proved to be a really straightforward process and now it’s all done and dusted we’re really looking forward to embarking on the start of an exciting new era for the company. Although we don’t intend to make significant changes, we have identified subtle modifications with the aim of facilitating growth and driving performance.”
Mark Maginnis, Managing Director
“Further down the line we would like to explore the possibility of opening a third branch but this is not an immediate priority. The most pressing aim is ensuring that the transition following the MBO is as smooth as possible and that we continue to be profitable by developing the business in-line with the latest trends and customer demands.”
As would be expected of a company with such a rich heritage to draw upon, Kelvin Timber has been careful to keep its supply chain well and truly in the loop throughout the MBO process. “Our supplier relationships go back many, many years and we’re committed to continuing building on those moving forward,” highlights Richard McHugh. “We’ve been a member of the H&B Buying Group for around ten years and they’ve helped open up links to a range of suppliers and products we previously didn’t have access to. People are always a bit unsure of change so we’ve worked hard to reassure all of our suppliers that it’s very much ‘business as usual’.
“Once everything has settled down then we’ll start to implement more major changes. Myself and Mark have been involved in the business for the last 15 to 20 years and now is the time to start bringing through some fresh ideas of our own. Looking at the next 12 months, if we were to have this conversation in a year’s time, I’d have hoped to have increased both our turnover and our profitability. We’re extremely well known within the local area for our building and timber materials so it’s just a case of capitalising on that in order to develop the business further across the central belt of Scotland. We’ve got all the foundations in place, the aim now is to make the most of them and take the brand to the next level.”
For more information visit: www.kelvintimber.co.uk