Visit note on Amworld Couriers and Logistics (UK) Ltd (Edited)

Meeting with Dave Rustom
Of
Amworld Couriers (UK)
9 October 2001

1. Dave now works from home. He has a manager at Amworld and has formed a separate logistics company – Logistics (UK) Limited. He also has a property company.
2. Amworld Couriers (UK) Limited
 The Couriers accounts show PBT of £170k after paying Dave £280k.
 Turnover is just over £3m. Dave thinks that to push for turnover would compromise margins.
 Amworld used to act as agents for Sureway. They would break bulk for European distribution on inbound shipments from the US, notably for Computer Associates. Sureway were sold by their parent and the business went to a trickle. The loss of turnover was offset by gains in margin.
 The main clients are entertainment industry companies, and the main traffic is outbound. Goods include publicity materials, merchandise, film rushes and products such as CDs. A CD burning facility at Amworld to serve record companies is being considered
 Amworld charge reasonably high prices but give premium service.
3. Logistics (UK) Limited
The logistics business has 20,000 plus sq. feet warehouse at Bedfont Lakes. Dave said the current turnover was around £1.8m (this ties up with the accounts). There are a range of customers and a range of services provided. Amongst those mentioned
 Handling product recalls for Ford
 Anne Summers pick and pack logistics. (The call centre, order acceptance and credit card work is done elsewhere.
 Mailshots and mailings. They have Rotal Mail domestic injection facilities but use MBI for international (Sorting is done in house because they don’t trust MBI). Typically the mailing would be items such as samples or goods rather than flats and they don’t have the equipment to do very big sort, wrap and address jobs.

4. IT
Dave has invested heavily in IT. He has a computer facility shared by both businesses. In the courier business they offer clients on line and internet based ordering, plain paper labelling and manifesting and track and trace. For the logistics business they are doing a good deal of list management work as well as inventory control.
All the systems have been developed in house. There has been a continuing and increasing investment in IT, which is seen as a ‘hidden’ asset.
5. Staffing
Dave has a pension fund for his staff and Amworld/Logistics UK matches their contributions. They have medical insurance paid by the company and salaries are above the going rate with bonuses based on results. Half the staff had been there for over ten years and Dave saw the staff as a key asset of the business. He tends not to recruit from within the industry because he believes that he gets better quality people by recruiting from outside and training them.