Confident plant hire boss happy to put £10m where his mouth is

Alex Turner meets GRAHAM JONES, MD of Plant Hire UK, in Haydock

WHILE waiting in Plant Hire UK’s reception area for the firm’s managing director, Graham Jones, to finish a phone call, his financial director and co-founder, Wayne Illidge, gave me a friendly warning.

“Graham can talk for England,” he said, with a knowing smile.

Two-and-a-half hours later – after an interview that usually takes an hour, and almost never more than 90 minutes – Jones’s passion and determination were clear.

He was phlegmatic about the recession (“it isn’t the first, it won’t be the last”), forthright about how to conduct business (“be honest”) and relaxed about his unfulfilled ambitions (“I’ve got my wife and two kids, both my parents are still alive and I’ve got a great business – I wouldn’t swap it for owt”).

By nature and temperament, he is the ebullient front man of a partnership with Mr Illidge which has grown a business from nothing, in August, 2005, to being able to invest £10m last year, mostly on 250 JCBs.

“We just blew it out big time,” Jones said. “We had two fantastic years to start with and a good third year. At the end of 2007, it started to go dippy.

“After three years, the recession came. We had roughly 900 machines, we downsized to about 600 machines and we still decided to move to bigger premises.

“We just outgrew the place in Newton-le-Willows that we had started in, it was time to look elsewhere.

“Since we have been here in Haydock, we have had half the yard concreted, the workshop roofed and we are putting in planning permission to have the office expanded.

“We are investing in new equipment. We are looking to expand the business, open satellite depots. If we hear of a company up for sale, we would look at a takeover.

“There are funds for future investment and we are looking to expand our business in Birmingham and other areas.

“We wanted to open in Birmingham two years ago, but everything went upside-down in our industry.”

Although ambitious, Jones is measured and deliberate about future prospects, especially with the construction industry remaining mired in uncertainty.

“We have to see how the industry goes – I think this could be the most difficult year yet,” he said.

“We won’t put machines out for nothing.

“Our aim is to make a small margin – we won’t be busy fools.

“It’s just so unpredictable at the moment with the industry, it’s on its backside. If the industry grows, we all grow.

“We want to expand this business for at least the next 10 years.”

Jones and Illidge have worked hard to establish a firm foundation in its customer base and its financial position, which has put them in a strong position when some of their competitors are feeling the pressure.

He said: “We are structurally sound, so that if we were awarded a big contract we could take it on. If it suits us, we will do it.

“The funds are available for equipment or to expand the business or to buy a company out.

“If something is thrown at us, we will have to look at it.”

That approach is ultimately the reason why Jones is running his own company.

After starting his working life as a tyre fitter straight from school, he got into sales before getting into construction in 1990.

Six years on, he moved to a West Midlands-based plant hire firm and just two years later became its managing director.

It was there he met Mr Illidge, who already had 15 years’ service with the firm.

“We took the turnover through the roof, within four years it was turning over £8m a year,” he said.

Problems followed a change in ownership, as a result of the chairman’s death, which led to Jones attempting a management buyout (MBO).

It was turned down, and Jones, who was already part-way through his 12 months’ notice period, soon left to set up Plant Hire UK.

Having worked so closely with Mr Illidge, and with their skills complementing each other’s strengths, it was inevitable that a partnership would be formed.

He said: “He couldn’t start for six months, so to begin with there was me, an office girl, a driver, a second-hand wagon and a van.

“The finance companies – JCB finance, Volvo finance, Terex finance – they all gave us unbelievable amounts of credit due to our reputation.

“It was a breath of fresh air for me, it was a new challenge.”

The company supplies plant hire, stressing the quality of its machinery and its service. Its machinery is no older than 27 months, which ensures they comply with the latest health and safety standards, as well as being free of the wear and tear that affects older plant.

Jones said: “We have regular committed customers because of the service we thrive on our service and the quality machinery.

“We don’t have any small tools. Our service starts from a ground worker going on site. We will provide an excavator, a digger, a roller, a fuel bowser.

“Then, after the ground works, we will provide various size telehandlers for them to get the building up.”

The investment in 250 JCBs means that Plant Hire UK has now bought 500 since the company was founded.

“We have used JCB telehandlers since we started because they are high quality, easy to operate, reliable and the back-up and parts availability are second to none,” he added. “Nothing has changed in our eyes, as these huge milestones demonstrate – you get what you pay for, and JCB is clearly number one when it comes to telehandlers.

“The ongoing update of our fleet is part of our commitment to provide customers with the latest and safest equipment in excellent condition.

“Customers like the brand and our engineers know the products well. The sheer volume and variety of equipment we have taken from JCB reflects our continued and ambitious growth.”

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