Bibby tackles losses
Page 14
If you've noticed an error in this article please click here to report it so we can fix it.
EXCLUSIVE • Bibby Distribution Services is expected to reveal heavy losses next month, but the company believes that a series of tough measures will put it back into profit next year.
Two of its 11 depots are causing concern and closures have not been ruled out. The company's turnover is £20m.
Managing director Andrew Palmer was headhunted from the Transport Development Group in September to act as a troubleshooter for a company which admits it expanded too quickly after its formation three years ago.
Palmer says he has kept a tight rein on cash flow and has replaced a number of managers who did not fit into the centralisation of management at Bibby's Liverpool HQ.
Three directors and three managers have gone — some were "fired", says Palmer. Up to 50 drivers and warehousemen have been made redundant and the vehicle fleet is down by 10%.
Palmer says the depots were in a state of "local anarchy" when he took over. "For example, we spent a lot of money developing a corporate logo and yet there were regional variations," he says. As a result of Palmer's ac tions, parent company Bibby Line Group has give BDS a large cash injection.
Palmer says he may "close some depots but open others". He says the firm's Scunthorpe depot, which is dedicated to supermarket chain Nisa, will expand next year, taking on up to 80 staff.
Last week Bibby won a contract to distribute for drinks firm Gilbeys in the North and East of England, and it has been nominated for a 'supplier excellence' award by IBM.
"People are coming to us because they believe we have the quality to deliver," says Palmer.