Builders merchant buying group NBG LLP is bidding farewell to partner Huws Gray, the Welsh independent builders merchant, at the end of this week.
The decision to leave is by mutual consent and is on amicable terms as both NBG and Huws Gray have revealed to buildersmerchantsjournal.net
Terry Owen, Huws Gray’s managing director says that whilst NBG has been “a key factor in our growth over the past few years”, the company’s own need for growth and flexibility cannot be accommodated within NBG’s structure.
“In 1999 we had a turnover of £7m,” he said. “By 2004 that had grown to £27m; last year it was £59m. Basically, every five years we have doubled in size and the buying advantages of NBG have played a key role in getting us to that position. We are looking to continue growing the business and there is no reason why we couldn’t reach £100m.”
However, he points out that any further growth is likely to bring them into the geographical area of other NBG partners. “We really can’t grow much bigger without treading on others’ toes and as we grow we will need to take more charge of our own deals and need a certain flexibility with deals that can’t fit within an NBG partnership .”
Owen is full of praise for the NBG team and how well they have handled the company’s departure.
NBG LLP executive chairman Allan Durning said: “Obviously we are sad to see John (Jones) and Terry leaving NBG but we fully understand their reasons for leaving. As NBG grows bigger, we have to maintain our discipline of not opening up in overlapping geographic areas and of full deal compliance. Huws Gray want to grow and expand their business which is what independents do and they want to do so whilst being fair to the other partners.
“We wish them every success and I have to say they are the very model of an independent business. If Carlsberg made builders merchants, it would be Huws Gray.”