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BRANCHING OUT FOR BUSINESS

18th January 1990, Page 110
18th January 1990
Page 110
Page 110, 18th January 1990 — BRANCHING OUT FOR BUSINESS
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Keywords : Babergh, Hadleigh, Mundon, Trailer

Al International, part of the burgeoning Had eigh International group, is relishing the challenge of the Single European Market and, by using its Hadleigh team-mates, is winning business in a number of specialist fields.

• The onset of the Single European Market in 1992 is not something that worries Jim Corden, newly-appointed managing director of Al International: "We are going to start a trailer spares business next year — we expect to have it in place by April—and this will be an international operation." he says. "No one offers this type of service — ours will be genuine manufacturers' parts, with regular deliveries."

A computer program has been developed to control the operation, and the whole venture, to be based in the West Midlands, has been planned in consultation with European manufacturers.

M Industries is in a confident mood following the recent acquisition by its parent company, Hadleigh International, of Manchester-based Lynton Commercial Units.

The office block at Mundon, where Al is based, sports the name Showpoint. This is a new title, says Corden, to highlight the building and rebuilding service for show units and large trailers. -We provide specialist paint finishes and the interiors are being finished by Lynton," he explains.

Al has targeted show trailers as one of its key products and is willing to undertake most jobs. Going through the workshop just before Christmas were two trailer units for the Electricity Council which were being converted into a mobile lecture theatre.

The company is aiming at the top end of the market: Corden says that typical business includes mobile screening centres, hospitality units and even racingcar transporters: "We want to develop the range of big rigs that we are offering in association with Lynton — we have one of the largest paint shops in Britain, here in Mundon, and a super reputation for paint finishes.

Al has a history of working with clients to produce trailers, says Corden: -The firm has even got involved with trade unions in the design and building of some vehicles."

Not quite so glamorous, but a potential money earner nonetheless, is gully cleanser refurbishment. "Through our tanker subsidiary Cookson and Zinn, we can X-ray the tank, while other refurbishments, such as engine replacement and gearbox rebuilding, can be done at Mundon," he says. "You can get an as-new vehicle back on the road for half the price of a new one — I think we are going to see some expansion here".

Al is also the sole distributor for Van Hool trailers in Britain — giving it another foot in the European door. The trailers are for the top end of the market. and sales of some 300 had been reported up to the middle of 1989.

The company was acquired by Hadleigh in 1983. and turned round from a loss to a sizeable profit in just 12 months. "We are in a position to expand our bodywork, repairs, refurbishment and stretching services," says Corden; this is part of the firm's 1992 philosophy.

It has a good relationship with Ford and has handled a lot of show preparation work, including customising and cutaways for the Strasbourg launch of the new Ford Transit range.

"We also want to make people aware of what we can do in the rigid market," says Corden. He aims to set up a number of 24-hour depots offering repair and refurbishment, and has already started with Cooks TIR Tilt Bodies, part of the empire. close to the Dartford tunnel. "We are looking at the possibility of purpose-built factory units in the North West, London area and possibly near the coast, perhaps Dover, he says. "We need improvements in roads, particularly in the East, and another M25 — but not one that encourages local traffic. The planners should not have been surprised when this happened."

Corden adds that, with a bit of imagination, there could be increased cooperation with British Rail in the provision of Section 8 sidings: "There is excellent potential for curtainsiders in Europe after 1992 and we are getting ready to provide European manufacturers with them through Kurtrans, our curtainsider manufacturing subsidiary. We have made improvements at Kurtrans,he says, -and we are very keen to see a quality product based on BS5750."

He wants to get his staff trained up and acquainted with BS5750 — -we have the systems in place that will satisfy the British Standard" — and expects the training package to be in operation within months: -One firm got theirs going in six months. We can't go that fast, but we are not far behind".

Staff turnover at Mundon, where Al is based, is very low despite being close to Chelmsford, which is claimed to have one of the lowest unemployment rates in Britain.

The order book for 1990 is confused: there have been many order ammendments caused by the changes in trailer length. "But it is, at least full, and we are in a position to expand, when necessary, says Corden. "our profits are well on target for 1989/90 and, though our financial year does not end till March, we expect 1990/91 to be at least as good."

If Hadleigh's financial record is anything to go by, Al is set for a shining future. Hadleigh's turnover was £7,491,000 in 1987, £9,028,000 in 1988 — and £14,409,000 in 1989. Pre-tax profit rose from £131,000 in 1987 to £968,000 last year.

Charlton Seal Schaverien, the group's stockbrokers, have updated their forecast for Hadleigh to March 1990 from £1.3 million to £2 million with the acquisition of Lynton, which is good news for the shareholders. Al has an employee share-save scheme which, not surprisingly, says Corden, is popular with employees eager to own a part of a success story.

E by Tony Pattison

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Organisations: Electricity Council

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