Brighter future at kitchen firm (From The Bolton News)

Brighter future at kitchen firm

A KITCHEN firm is set to continue its rapid growth after being bought by its management team in a £33 million deal.

PJH Group, based in Alder House, Kearsley, designs, sources and distributes a range of kitchen units, appliances and bathroom suites to companies such as Barratt Homes, Persimmon and builders' merchant Travis Perkins.

It is also an exclusive supplier of bathrooms to B&Q.

Formed in 1972, the Bolton-based firm employs more than 700 people across five trading divisions - Hopkinsons Fourways, The Kitchen Group, Onsite, In-Store Logistics and Wellness Whirlpool - and eight UK trading centres, which include Bolton and Walkden.

The deal was led by Ray Stenton and Paul Johnson from private equity firm LDC, which has invested £10 million for a majority shareholding.

The Manchester office of HSBC supported the deal with a £27.5 million package to cover debts and working capital.

The business has experienced a period of rapid growth with turnover rising from £100 million in 2000 to over £150 million in 2004. LDC will be working closely with PJH's management to implement a growth strategy that is expected to see sales increase to more than £190 million over the next three years.

The new executive management team includes Andrew Yates, group chief executive, Kevin Powell, logistics director, Mark Errington, group finance director, Phil Anderson, commercial director, and Steve Johnstone, sales director. Ray Stenton from LDC will join the board.

Andrew Yates said: "PJH's established reputation in the market has helped us form strong partnerships with leading names like B&Q and exclusive supply agreements with a number of respected international brands.

"Consumer spending in the DIY market, and in particular bathroom suites and kitchen units, is set to continue increasing in the long term and PJH is perfectly positioned to capitalise on this growth."

Mr Stenton said: "PJH has a significant market share of the kitchen and bathroom market and is well positioned to increase this over the coming years.

"As well as ensuring the continuing success of the firm's core business unit, we will be focusing on building the other divisions, such as Hopkinson Fourways, which serves the independent retail channel and has excellent growth potential."