Welsh independent builders merchant Huws Gray has started the year in bullish mood following its acquisition of the Colwyn Bay branch of timber merchant Roger Haydock.
Terry Owen, one of the owners of Huws Gray, told TTJ that it sees timber merchants as good acquisition targets and that it was planning to increase group turnover from £60m currently to £120m within five years.
Colwyn Bay is the 30th branch in the Huws Gray network.
“We are looking for acquisitions and Colwyn Bay slots in quite nicely,” said Mr Owen. Historically, some of our best acquisitions have been timber merchants.”
Huws Gray intends to develop the Colwyn Bay branch further on the timber side and add other products as well.
Mr Owen said selling a business to an independent like Huws Gray rather than a national was a refreshing option for companies.
He also said the company had “bucked the trend” by returning a profit and retaining its turnover level over the past 15 months, which he put down to the directors all being former traders who take a hands-on and focused approach to management.
Mr Owen said the company’s timber business represented 20-25% of turnover (£12-£15m), while group net profit was running at about 11% of turnover.
Huws Gray also plans to leave the National Buying Group soon.
Roger Haydock & Co continues to trade from its branches at Bootle and Whitchurch and head office at Widnes. Managing director Andrew Haydock said he did not have to sell Colwyn Bay, but Huws Gray’s persistent enquiries over the past five years culminated in an attractive offer in the current climate.
