The name Alsford Timber was synonymous with quality merchanting, where customers knew they were getting the very highest quality timber products from a family business that had grown through the generations. Started in Leyton, East London in 1882, it developed throughout the south-east of England, with importing and milling facilities, as well as a large merchant branch network. Its demise, when it came, was sudden and a shock to the whole industry, but at the time, recession and downsizing were happening in many sectors.

However, rescue came from the Kingsbury Group. With a mixture of financial muscle and nerve, it took on most of the merchanting outlets and put in place the finances to steer it back on course. Kingsbury also identified that it needed a large importing section, to give its timber portfolio the right mix and structure.

If Alsford Timber was well known for quality merchanting, then E Jones had a similar reputation, based mainly on its bulk sheet material and timber operations. By the end of 1994 E Jones was merged with the Alsford sites, giving a powerful network in the south-east. The two names continued to trade, side by side, until 1998.

At this time it was recognised that the timber business needed a specialist to focus on running it, as a separate entity, within the whole Kingsbury Group. John Griffiths came in as managing director: having spent over 13 years within the Wickes group, followed by Ruberoid.

Fixed and variable costs

The group had continued to function as separate entities, supplying and assisting each other where appropriate, but Mr Griffiths soon identified that profitability could be greatly enhanced by drawing these businesses closer together, thereby reducing many of the fixed and variable costs.

‘We soon identified that we needed to trade under one name, which is always hard when you have two powerful brands that have to become one,’ said Mr Griffiths. ‘However, the end benefit drove us all on and the staff at all of the sites have been marvellous in helping to bring these changes about. Now it is far easier to see us and develop the company, using Alsford Timber as the brand name.’

The other key point was to ensure that the bulk sales business continued to flourish along with the merchant sites and this has taken a great deal of effort. ‘The Erith site was the main E Jones unit, so we have concentrated our head office and main functions for the whole group here, alongside the central sales and wholesale distribution,’ said Mr Griffiths.

The two facets of the business have very clear aims and objectives, while the company as a whole is brought together as one entity by training and communication. ‘With 170 employees working in 17 locations, we need a framework that works, with an appraisal system and also specific training, so that our staff can work together,’ said Mr Griffiths. ‘Alsford Timber was the first company to use the Finnforest training academy, together with open learning packages. We are now working towards Investors in People accreditation in 2002.’

Reporting and monitoring

Mr Griffiths’ background working in senior management has meant that he brought in the reporting and monitoring systems that he is used to and the management team’s depth of understanding has increased; all aspects are monitored, right through to credit notes and costs, to ensure that the group accounts are reliable and accurate. ‘We know that a widespread business needs these controls to be efficient and they also ensure that the management team can spot potential problems early on’.

Alsford Timber’s merchant division now operates from 15 sites, based around the southern side of London and along the south coast. The focus is totally on timber and associated products, with no building materials stocked at any of the sites. Some of the branches have a small milling facility and they all have the stocks, vehicles and facilities to offer an excellent local service.

Efficiencies continue to come into place at Erith. ‘We have looked at all areas of the business and have kept the pressure on to give our central sales business every possible advantage in this highly competitive market,’ said Mr Griffiths. ‘Now that the branches are operating on their own, we can concentrate on the bulk sales business. As an example, we have a large milling centre here, but it’s better placed to service medium sized specialist work and not stock profiles for the branches or our large formwork business.’