City round-up: Bodycote; Supreme

Bodycote, the Macclesfield-based provider of heat treatment and specialist thermal processing services, has unveiled Jim Fairbairn as new group chief executive.

He will replace Stephen Harris on his retirement and is expected to join the company and the board in March 2024 and become group chief executive in May 2024 following an orderly transition.

Stephen will step down from the board and retire from the company at the next Annual General Meeting on May 31, 2024.

Jim, 54, has considerable experience in managing engineering businesses, having worked with John Wood Group, PE-owned Clyde Bergemann, Howden Group and Megger Group in a career spanning more than three decades, with substantial experience as a divisional and then group CEO.

He joins Bodycote from test and measurement specialist Megger Group in Dover, which he joined as group CEO in 2017. Under his leadership, its revenues have materially grown to £325m, with operating margins expanding significantly.

He also meaningfully evolved Megger’s strategy and culture over this period. Prior to Megger, he held executive positions with Howden Group in Glasgow from 2009-2017, concluding his time there as president of the Howden Power, Environment and Process business with global product and service revenues of more than $1bn with 19 sites worldwide.

During his time in Glasgow, Jim chaired the Glasgow Employer Coalition, helping long term unemployed into work, for which he was awarded an OBE in 2007. Jim has a degree in Mechanical Engineering from the University of Strathclyde, is a Chartered Engineer, a Fellow of the Royal Academy of Engineering and has an honorary Doctor of Science from City University.

Chair of Bodycote, Daniel Dayan, said: “The board is delighted to appoint Jim as Bodycote’s next group chief executive. His track record in leading and developing specialist global industrial businesses and teams is outstanding and will enable him to contribute rapidly.

“His understanding of many of our processes, many of our customers, and the nature of our highly varied markets will be of enormous value. I look forward to working with Jim to drive the continuing development and growth of Bodycote.”

Stephen Harris said: “I am confident Jim has the right skills and experience to continue to drive the company’s strategy and performance over the coming years. In the meantime, I remain focused on the initiatives we have in place to develop and solidify Bodycote’s leadership position in its chosen markets.”

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Supreme chief executive Sandy Chadha

Stretford-based manufacturer, supplier, and brand owner of fast-moving consumer products, including vaping goods, Supreme, said trading for the first six months of the year, to September 30, 2023, has been in line with expectations for the full year, which were significantly upgraded last month.

It expects to report revenue of around £195-£205m and adjusted EBITDA of approximately £28-30m.

The group said it expects to report a record performance for the six month period, with revenues in excess of £100m (H1 2023: £67.6m) and adjusted EBITDA of no less than £15m (H1 2023: £8.1m).

The Elf distribution opportunity has exceeded initial expectations and contributed to around half of the reported revenue and gross profit growth in the period. The remainder has come from the group’s four other categories that have, without exception, all reported strong revenue and gross profit growth.

Separately, the group has today announced a series of proactive measures relating to the packaging, flavouring, recycling and point of sale checks within its vaping category, which management believes should be adopted across the sector.

The measures include: Plain packaging. Discontinue all bright coloured disposables. Age-appropriate flavours only. To trade only with retailers with age robust verification. Responsible location of products in store. Vape disposal bins in store. Government co-operation. Industry co-operation.

Supreme chief executive, Sandy Chadha, said: “As a business, we are fully committed to eradicating underage vaping so that the industry can get back to its core objective; to support adult smokers to find an affordable, sustainable, safer alternative to smoking.

“Whilst we believe flavoured vapes are a critical part of many ex-smokers’ ‘quitting journey’ as they seek to replace that tobacco taste for something more palatable, we are also desperate to ensure that those flavours do not spark any interest in younger people.

“We are fully supportive of any further legislation in the sector and believe it is the right thing to do to begin to transition our business by removing or changing anything from within our product set that could be deemed compromising. As government guidance evolves we may seek to re-assess this approach.”

He added: “I would like to go on record to pledge my support to the initiatives currently being recommended to the government by the Vaping Industry Association who argue that licensing the sale of vaping products (similar to alcohol) will directly address the problem such that only reputable and responsible retailers should be permitted to sell vapes in the first place with substantial fines for those that are found to be selling vapes to children.

“Finally, I would also like to highlight the ‘black market’ or illicit vape market to the Government as a core source of vapes for young people given their accessibility and the interest generated by these brands on social media.

“These illicit vaping products, which are non-compliant with UK regulations and have larger tank sizes (meaning they last longer), higher nicotine concentrations and can contain banned products. Unless we stand up to this black market, by stricter border-force and increased investment into trading standards, then even the strictest laws governing the legal vape market won’t make a notable change to whether young people choose to vape.”