Date: 02 July 07
Publisher: North West Busines Insider - July 2007
Who? Neville Johnson, a furniture company based at Broadoak Business Park, Manchester.
What do they do? Established in 1987, the company designs and manufactures bespoke fitted furniture for homes and offices. It employs 150 staff at its headquarters in Manchester and a total of 200 across the whole of the UK. Original founder Neville Johnson sold the business to Lancashire group Calderburn in 1994 and it was acquired by management in a deal worth £8m in 1999, but retained the name.
Who are we talking to? Nigel Pailing, chief executive of Neville Johnson, who has overseen a turnaround in the company’s fortunes since assuming the role in February 2006.
A turnaround? Yes, after a series of disappointing years, private equity investor Endless led a secondary buyout from venture capital giant 3i in 2005, which has helped to revive the business. In 2006 Neville Johnson broke even and unveiled profits of more than £1.25m for the year to 30 April 2007 as sales grew 10 per cent to £14m.
“2007 has so far been a fantastic year for the company,” says Pailing. “The UK furniture market in general is struggling at the moment, but we are bucking the trend. The positive effects of our strategic marketing campaign, as well as the evolution of our product offering and dedication from each and every member of staff to providing first class customer service, has shown itself in this increase in sales.”
So what’s new? The company has invested £150,000 in the complete renovation of its Manchester showroom, featuring 13 new home office, bedroom, home cinema and living room designs. It has also spent more than £1m on factory machinery, as well as putting new infrastructure and procedures in place.
Is it expensive? “People are always surprised at how cheap bespoke furniture can be,” says Pailing. “Although our designers can tailor it to the client’s exact specifications, bedroom prices for example, start from as little as £4,000.” Bedroom furniture now accounts for 30 per cent of sales, while a growing proportion of orders are for home cinema and home office furniture.
What’s next then? Pailing says that the business is looking to expand the number of showrooms it has, adding to outlets in Wilmslow, Buckinghamshire and Stirling, as well as its own 3,000 sq ft headquarters. It’s hoped that the expansion will also allow further growth, targeting a doubledigit increase in sales and profits in 2007.