There aren’t many companies that can say they’ve doubled turnover in the last five years.
But for St Helen’s-based Cheshire Mouldings, it’s a claim that’s backed up by spectacular growth and a reputation for supplying innovative timber mouldings at competitive prices.
That reputation will be further strengthened later this year when the company’s £750,000, state-of-the-art factory officially opens its doors – complete with £1m of cutting-edge machine technology.
It’s all part of a master plan that managing director John Carney believes will see Cheshire Mouldings doubling its turnover again within the next 10 years.
And you’d be a bold man to bet against it. Sales in 2006 reached a healthy £7m; this year, turnover is expected to hit a shade under £9m, prompting Mr Carney to predict a big future for the company.
Founded in 1988, Cheshire Mouldings was started by Mr Carney with one lathe. It now employs 55 people manufacturing and stocking a complete range of stair parts and timber mouldings.
Its growth is down to a mixture of quality workmanship, service, competitive pricing and sheer hard work. “We have a young board of directors, who are all extremely enthusiastic. The ambition is to at least double the size of the company’s turnover within the next 10 years – which we are over target in doing already,” said Jackie Capper, office manager. “Our turnover is up 25% this year which, when given the doom and gloom of the rest of the market over the last 18 months, is an excellent result.”
With the investment in new technology and a move to a larger factory, the company will have more scope to improve productivity – and profits. A Weinig moulder, Raimann multi-rip saw and a Dimter Opticut 450 are part of the investment, alongside a hi-tech WoodEye scanner, which will allow the company to automate its grading and stacking of timber, looking for defects and removing these from the raw material – ensuring a good quality product.
Loyal customers
Ms Capper puts much of this success down to the loyalty of Cheshire Mouldings’ customer base. “We have 650 independent trading accounts and we really do appreciate the business we get from the independent sector,” she said. “But we have also increased our product range which has really taken off.”
The company supplies products to suit any home, from traditional turned spindles and newels in a wide range of timbers to the new products in its Quays and Axxys ranges.
“This is why we need a new factory,” said Ms Capper. “We need a bigger distribution area, a lot more warehousing and places to manufacture things. Because we’ve added to the product range and are selling to more people, we just need more space.”
When the company moved to its current site, it occupied 9,000ft2 on five acres; now Cheshire Mouldings has developed nearly all the site, with in excess of 60,000ft2.
With the new factory come new opportunities, particularly targeting larger companies and supplying some of the major DIY multiples. But, the company will continue to prioritise the independent sector, allowing smaller companies to sell what it believes is a unique range of products.
The company is keen to improve the profile of mouldings with end users. “When people do a house up, they often don’t think about mouldings,” said Ms Capper. Last year, Cheshire Mouldings exhibited at several top home design shows such as Homebuilding and Renovating, where its new products were all well-received.
Species
Its mouldings collection is available in a range of pine, oak, light hardwood and red hardwood timber. Recently, it has seen an upsurge in sales of oak mouldings, following trends for oak and ‘blond’ flooring. “We are looking to produce more bespoke mouldings,” said Ms Capper. “The more facility we have to create the right material to make the mould, the more we are going to be able to offer.
“During the past 12 months there has been an issue in making sure we have the wood to cover the sales. It could have been a problem – but we were able to cover the raw material demand, hence our increase in sales.”
Material price increases forced the company to increase its own prices last year – for the first time in the five years it has stocked mouldings. “It’s energy, it’s China – it’s all having an effect. We have had a price increase, and there will be another one this year. But, so far, nobody’s complained: if they’re buying timber they appreciate that the price has gone up, and not that we’re trying to make more money.”
The future looks bright for Cheshire Mouldings. “We want to grow the business,” said Ms Capper. And, with its current fortunes looking strong, Cheshire Mouldings should be smiling.
