OPERATING FROM A POSITION OF STRENGTH
Founded by Steve Evans in the 80s from his spare bedroom, Clarkson Evans, electrical contractors, has grown beyond recognition to an annual turnover of £57 million, with a mostly site-based workforce of over 900 staff wiring new homes across England and Wales.
So, with such extraordinary growth, Finance Director, Paula Bradshaw, who joined the company just over two years ago, explained to us how the company ensures sustainability both now and in the future.
CASH IS KING
Paula works with the philosophy of ‘cash is king’, ensuring profits are converted to cash, something she learnt early in her business career from the Finance Director at M&C Saatchi, which has helped to guide some of the recent changes at Clarkson Evans. The focus has been on strengthening the company’s cash position to continue to support the ongoing reinvestment into its business and its people to ensure sustainable future growth.
To achieve this, effective and efficient cash-collection processes and relationships are key; working on ensuring credit controllers are at the heart of the business by locating them within the commercial teams, but maintaining their independence by still reporting to finance understanding the background to the invoices they raise to ensure they are correct; developing effective relationships with customers and raising issues early before the debt is a problem. It may seem simple, but this has meant there is more cash in the business to be flexible react to change, and make the most of opportunities as they arise.
Clarkson Evans knows the importance of being ready for change; after turnover halved in 2008, almost overnight, thanks to the economic downturn and an abrupt decline in housebuilding. Paula explains this is key to being sustainable, with businesses needing to operate from a position of strength in order to weather the difficult ttimes and maintain the ability to provide quality to its customers at a good price – something Clarkson Evans prides itself on.
INVESTING IN PEOPLE
Clarkson Evans invests substantially in its business structure, including its fleet tof over 400 vans, and has just launched a major project to upgrade its IT infrastructure and operational systems. Crucially though, it recognises the importance of its workforce in the success of the business and a strong cash position enables the company to invest significantly in its people.
The success of its award-winning apprenticeship scheme is no secret; it forms part of their USP and has developed from just a handful of apprentice electricians in the mid-80s to more than 250 across the company now, in a variety of departments.
Clarkson Evans wants to create and develop its own talent to guarantee the quality of training for its workforce and be able to deliver high-quality service to customers. It creates a workforce of loyal employees who take pride in their work; develops strong, lasting relationships with customers, and creates many apprentices who go on to become managers across the business. A strong, stable workforce will, ultimately, drive growth and cash back into the business.
The current career progression and clear development opportunities are very important for employees and Clarkson Evans is not stopping there. The company has recently recruited an organisational development manager in a brand new role devoted to planning and coordinating an enhanced strategy for investing in people.
CHALLENGES FOR THE FUTURE
The housebuilding market cycles have fluctuated significantly over the years and there remains a shortage of new homes; however, government policy appears to be moving in a more positive direction, with greater encouragement to increase the level of housebuilding and establish a more diverse supply market. Clarkson Evans is well placed to support that growth with strong relationships with the leading house builders and successful new entrants to the market.
It is hard to ignore the potential impact that Brexit may have on the future of the business. Housebuilding and home buying is directly related to consumer confidence as highlighted in 2008, and so, as with the majority of UK businesses, questions are raised and are, as yet, unanswered.
Despite the uncertainty, the message is clear from Clarkson Evans; when there is cash in the business and it is performing efficiently and effectively, you have what you need to invest in your people who will drive your sustainable growth.
Meet the Finance Director
Paula Bradshaw – Finance Director
- Paula trained with PwC in London and brought considerable experience to the Finance Director role having held senior finance roles across a variety of sectors in fast-growth, private equity backed, privately owned and FTSE 250 plc companies.
- In previous roles, at businesses such as the local international clothing brand Superdry, national dentistry group Oasis Dentalcare and global oil and gas services provider The Expro Group, she led the development of the finance function and implemented new finance systems and processes to support business growth.
- She also brought significant stakeholder management experience at board level and external advisers, and in the effective provision of financial management for strategic business projects and financing.