Blood is thicker than water
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The former MD at Southampton’s Meachers Global Logistics was lucky that his son was in the right place at the right time to take on the business
Words: Chris Druce / Images: Tom Lee and Nigel Spreadbury
MEACHERS GLOBAL LOGISTICS may have expanded to become a £20m business running road transport, warehousing and freight forwarding operations from its Southampton base, but as a family irm it faced the same succession challenges common to any haulier.
In November last year, Stuart Terris, son of Bob Terris (the man who built the modern-day Meachers), became MD. The appointment signalled the most dramatic change at Meachers since Bob became MD in 1981, after the retirement of the founding trio of Meachers brothers and sale of the business to Pirelli Cables. Bob completed a phased management buyout in 1996. This returned the destiny of the business he had joined in the 1960s, as a trafic clerk, to the Terris family. But, in something that will ring true to so many family irms, it was never a foregone conclusion that Stuart would succeed his father. However, while not quite Darth Vader and Luke Skywalker in terms of tricky family succession planning, Stuart nevertheless wanted to be his own man.
He explains: “I wanted another string to my bow. A profession is always useful to have and, at the time, there was a distinct lack of chartered accountants.”
Back to the classroom
Keen to create a tale or two of his own, Stuart went to the University of Kent, where he graduated as a chartered accountant in 1991. He joined BKL (now RMS Tenon) in Winchester and initially specialised in audit. “I’m not keen on checking other people’s work. I prefer to create it and to do it myself,” he says.
Stuart moved to the SME department. “I had the technical ability and knowledge, so I became a specialist in that sector and got the experience of the industry [from the other side of the fence].” In 1997 Stuart reached the point where he could remain at the irm and become a partner or return to Meachers. It was around this time that the logistics company bid farewell unexpectedly to one of its management accountants. There was a need to ill the role while a long-term replacement was recruited, so Stuart put himself forward.
He is candid about being interviewed by his father. “It’s not to be recommended. It was probably the most nervous interview I have ever had – and the thought of not getting the job.” He joined Meachers as a management accountant for its commercial garage, which specialised in ERF and, later, MAN. The business was sold to a local dealership in the mid-2000s.
Stuart was in his irst role for only about six months. Towards the end of 1997, the company brought in a new system to replace the ageing technology running its operations. He took on the role of systems manager. When this project was complete, the trafic ofice was next.
“When I joined the company, it was set out that I needed to work in every department,” says Stuart. “I don’t want anyone working for me whose job I can’t do.”
Night shift
After the transport ofice, Stuart spent time in the warehouse, gaining a forklift truck licence and working night shifts. Admin was next in 2003, with the future MD supporting the general man ager as an understudy. When the general manager left in 2007 he effectively took over the role. “In 2008, we started the [senior] management restructure and I became operations director. I was operations director of UK, domestic, as opposed to international [the company’s freight forwarding activities].
“Then in 2010 I became deputy MD and on the 1 November [last year] progressed to MD.” The one role in the business Stuart hasn’t done is driving one of the irm’s 60 yellow-liveried trucks. “My skills lie in my head rather than my hands and feet,” he says.
Luckily, that was exactly what was required. “It’s a different mentality to take a £20m business forward to what is required to set it up in the irst place,” says Stuart, of a discussion he had with his father in 2005 regarding the way the business needed to progress.
“You need different skills and assets. I need to manage the business in a different way [to my father], so I need to surround myself with a team of people to do various aspects. You can’t have one person doing everything.
“We’ve got a team at the top with one bloke with ultimate responsibility, but a team that’s capable of doing all the various technical aspects that are required,” Stuart says. “You’ve got to know and trust the people that you are putting in important positions.”
Blood in the business
Trust is important between family members too. Stuart says, with a half smile, that his father has become more relaxed recently. “It’s all very well having blood in the business, but you can have two problems: blood that wants to do it but can’t; and blood that can do it but doesn’t want to.” Stuart says his father has backed him to the hilt, standing by his decisions. Another compliment has been subtle, but no less telling. “He used to go on holiday and call every day. Now he calls every few days simply to say he’s on the beach.” So personal space, careful planning and effective execution sees Meachers in 2012 ready for the future, with the structure in place to sustain the irm for decades to come.
Stuart clearly relishes his part in that future and believes working in the business was the right choice.
“It’s not as if I’ve just come straight in and said, right, you work for me now. I’m someone that loves to gain people’s trust and work with them. In my experience, you then ind that people will follow you into the trenches.” ■
INVESTING FOR THE FUTURE
Meachers Global Logistics reported pre-tax profit down by more than a third in the year to 31 May 2011. While the fierce competition and margin pressure familiar to all in the industry was a factor, it wasn’t all bad.
Meachers was in the highly enviable position of being able to invest in new vehicles and almost halve its balance sheet debt, which was cut from £1.3m in 2010 to £682,000 in 2011.
“It was a tough year but we were pleased with the business performance,” says Stuart.
Turnover was 3.3% lower at £20.1m (2010: £20.8m), with pre-tax profit down 34% at £633,000 (2010: £962,000).