In little over five years the Bearmont Group has grown from a single company into a multi-faceted organisation with interests in a range of sectors. We recently caught up with its Chief Executive, Rob Lloyd, to see how this rapid rate of expansion has been achieved, even in the face of the challenges associated with the pandemic.
“We originally established the business primarily in the retail market, which is an area where I personally have a great deal of experience,” explains Mr Lloyd. “We identified an opportunity to acquire prime high street properties at attractive prices. The retail sector, which had lost its way somewhat due to the rise of online shopping and the lack of footfall due to the pandemic, meant that there was the potential to secure deals that provided really excellent value. We started off with several refurbishment projects before we moved on to secure larger contracts. One of the most significant was a partnering deal that we struck with the charity Sense. We’ve since finalised around 18 deals with them over the past two years, so it’s been a really fruitful relationship.”
Another demonstration of Bearmont’s keen eye for a profitable deal was when it acquired a sizable chunk of the former Arcadia portfolio. This included a number of Burtons and Dorothy Perkins units, which historically have always been in particularly good locations.
While retail has given Bearmont a tremendous foundation on which to establish itself, the company has also been proactively exploring opportunities in other areas too, enjoying more success in the process. It now has interests in residential and commercial development, strategic land, and investment across the UK.
“We are very deal-led and have been involved in projects throughout England and Wales, and as far north as the Highlands of Scotland,” adds Mr Lloyd. “We are fully prepared to travel the length and breadth of the country for the right opportunity. That said, the only area we don’t cover currently is central London, as it’s a very defined market within the M25.”
What makes Bearmont’s expansion all the more impressive is the fact that it has been achieved with a small team of just ten employees. Rather than having a large and unwieldy workforce, it has instead concentrated on having a core team supplemented by sub-contractors and professional consultants that are brought in as and when required. While this arrangement has worked well so far, the growth the group has seen means that recruitment is now on the agenda.
“We have a really good group of people that are very loyal and focused,” says Mr Lloyd. “Over the next 12 months we’ll be looking to bolster the management team. We’re aiming to recruit one, if not two, non-executive directors as the company continues to expand.
“In terms of where we’re seeing the potential for growth, we will continue to focus on retail, although the sector has hardened in terms of the pricing point as it’s become more competitive. Despite that, there are still opportunities in various segments or geographical locations that we’re looking at. We’re able to move very quickly to capitalise on opportunities as they arise. Another strong sector for us is strategic land, which we see as a key area for our business. We’ve just advertised for a new Strategic Land Manager to cover the department moving forward, as we’ve had a wealth of opportunities come across the desk.
“People see us as quite aggressive, as we’ve been very acquisitive and have completed a growing number of deals. This gives them the confidence that they’re dealing with a company that does what it says and is well funded. We don’t have to go to the banks, as we have facilities in place that allow us to move very quickly. This has given us an advantage and this is how we’ve been able to move forward so rapidly. We’ve had two good years of profits and have just finished our financial year at the end of June, so we’ve had another strong 12 months.”
In addition to its success commercially, Bearmont has also earned plaudits for the quality of its approach, having been shortlisted within the ‘Fit-out/Refurbishment of the Year category at Insider Wales’ Property Awards 2022. The nominated project involved the £250,000 renovation to completely convert Knightsbridge House Boutique, a Grade II listed retail unit in Llandudno over five floors, into specialist shops and a three-bedroom luxury flat.
“It was a high-end refurbishment and we were delighted to be recognised in the shortlist,” says Mr Lloyd. “It was a great achievement for the staff that were involved in the refurbishment and the construction side. The retailer was particularly happy and were delighted with the end result.”
As it looks to build on the success of the Llandudno project and the growth it has seen generally, Bearmont is now keen to keep the momentum going. “The main objectives are to strengthen the management team and to get on the next rung of the ladder, which will consist of larger deals and bigger chunks of real estate in the High Street,” outlines Mr Lloyd. “We’ll also be looking to secure more recurring income streams, as that’s the nature of the game currently. Cash is king, as is income. We’re financially strong and competitive in the marketplace, so we want to become a bit smarter in terms of acquisitions. With the correction the market is seeing now, we will be looking a bit deeper when assessing opportunities to develop a larger pipeline of deals going forward.”
With the ground it has covered already, Bearmont certainly looks well set to continue along its upward trajectory and make further inroads in the various sectors in which it operates.