OPERATOR PROFILE KINGS WOOD
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through his contacts he was able to convince the venture capital specialist to match his proposed investment pound for pound.
"Here was an opportunity to join an expanding business and the size and scope of the business matched the money I was looking to invest," says Vincent. But it was important that 3i liked his approach as the risk is shared by all parties. You have to sell yourself to potential backers," he adds.
Flack found the tie-up with 3i attractive because he had been unable to secure further backing through his own bank, a conventional clearing house. "Transport companies are always linked to the construction industry," he says.
RESULT
The arrangement allows Kingswood to buy back preference shares from 3i over a period of time but no one is guaranteed a result. "If it goes wrong we all lose our money," says Vincent.
Kingswood operates 40 trucks. including 15 which are driven by employees. The rest are provided by sub-contractors but they all run in Kingswood livery and with five new trailers joining the fleet in January the compnay is looking for more owner-drivers prepared to run a dedicated operation. It has a preference for Volvo FL1Os which, with a lightweight frame, can give a 25
tonne payload within the 38-tonne limit. Loads leaving the UK comprise materials for the building and manaufacturing industries, notably steel, excavators and timber. But Kingswood is looking for expansion in cross-European work, helped by the advent of the single market and cabotage. "Many clients are saying if you had a presence in the South of France we would give you some of this work," says Vincent.
An office in Barcelona is next on the agenda—joint ventures with Spanish companies are under discussion—and the emerging markets in eastern Europe are also being analysed.
For the time being the Anglo-French operation will be linked by ISDN, a fibre optic communications channel which allows backloads to be assigned without picking up the phone.
Bigger UK operators, such as Exel Logistics, have held Continental bases for years, often through the acquistion of foreign companies.
Kingswood's approach is still unusual in its class, but Vincent believes that will change. "It is inevitable that other UK hauliers will follow our example. Customers are setting up European bases and the service industries will have to follow."
El by Patric Cunnane