Macfarlanes sell firm to managers

After moving from a milk round to (pounds sterling)22m haulier with one of the highest profiles in the industry in 25 years, Leeds hauliers bow out in favour of their managers.

Macfarlane Transport founders Ian and Gordon Macfarlane have sold the business to three managers for an undisclosed sum. The new management team at the Leeds-based firm includes joint managing directors Robert Fox and Andrew Forrest, and finance director Paul Kennedy. Fox joined the firm in 2001 and the other two men have been with the firm since 2001 and 1995 respectively. The deal was co-funded by Lloyds TSB Commercial Finance, which provided an asset-based lending service, and Lloyds TSB Corporate, which provided finance. In a statement, Fox said Macfarlane is one of the most recognisable names in haulage and has a reputation for effectively driving cost efficiencies for customers. “Our strategy of steady organic growth will build upon our strong brand and we plan to continue investing in the systems and people that are key in providing strong customer service,” Fox said. “The combined funding package put in place by the two divisions of Lloyds will ensure that we can capitalise fully on the growth in the outsourced transport services market.” Brothers Ian and Gordon first did a milk round together. They started the company in 1978 with a second-hand truck purchased from the local classifieds, but fleet growth gained a boost in the early 1980s with a contract hire deal from Salford Van Hire. The brothers were also an early user of Roadrunner traffic office software. The firm says its annual turnover is now (pounds sterling)22m. Results submitted for the year ended June 30 2003 show a surge in turnover to (pounds sterling)18.7m, up from (pounds sterling)12.3m, and pre-tax profits of (pounds sterling)160,000, up from (pounds sterling)125,000. Directors emoluments are (pounds sterling)292,000, up fractionally from (pounds sterling)289,000. The firm has a fleet of 150 vehicles and 280 employees. Macfarlane Transport has customers in the manufacturing, grocery, home improvement, printing, publishing and packing sectors. It is a partner in Fastmag, which claims 40% of the UK magazine distribution market, and a founder shareholder in Jigsaw Solutions. Jigsaw managing director Paul Smith says: “It’s purely a management change – operationally there has been no change at Macfarlanes.”