Citation on track for record year amid red tape woe
CITATION, which provides businesses and professionals with employment and health and safety law advice, is predicting a record year amid strong demand for its services.
Bosses at the Wilmslow-based company, who expect 2011 ebitda to hit £4.5m on £15m turnover, believe that by 2014 these numbers can grow to £8.5m and £20m.
Expanding into new locations and offering existing clients new services are both on the agenda Citation said.
Founder and chief executive Lindsay Hill said the company’s growth was being driven by not only a rising tide of new rules and regulations from Europe, but also the more rigid, and in some cases “crazy” application of existing regulations by local authority procurement officials.
In one instance a taxi company was forced to meet health and safety rules designed to prevent accidents on construction sites just to be able to tender for council work.
“It’s not that the regulation is bad or not well thought out, it’s that it is being used in the wrong way,” Mr Hill said.
New regulations coming into force this autumn relating to the default retirement age being scrapped and to agency workers are driving customer numbers and call volumes to Citation’s 24-hour helpline.
Mr Hill, 52, who began his career as regulatory lawyer with London firm Fox Williamson, says that despite pledges by successive governments to cut red tape and free small firms from regulatory burden, there is little they can do to stem the tide of new rules from Brussels.
“The reality is the regulatory framework is forever being enlarged and the majority of it is coming from Europe.”
Mr Hill said the Legal Services Act, which comes into force later this year will offer his business a number of opportunities, mostly in commoditised legal work.
“It is something we are looking at, the Act throws up more opportunities than challenges for us.”
Despite some speculation in corporate financial circles about the business looking at doing a private equity deal in the coming months Mr Hill said: “It is true we have advisers, but we have had them for a while. This business is not for sale, we are focused on growth.”
Citation has around 210 staff. As well as the Wilmslow base, which opened in 2009 after a relocation from nearby Knutsford, the firm has bases in Cardiff and Glasgow.
As well as small businesses Citation’s broad client base includes many independent dentists, doctors and vets’ practices, while another strength is in the care homes and education sectors.
It serves around 6,500 clients and is growing at a rate of around 80 per month, finance director Julie Moran said.
Citiation is owned by the two executive directors along with a number of other investors, the largest being Paul Hogarth, the financial services entrepreneur who owns around 40%.
