Colony Gift Corp boosts turnover with rebrand

CUMBRIAN home fragrance and candle manufacturer Colony Gift Corporation has undergone a rebranding that it says will boost turnover by 25% this year, as it returns to profitability.

The 30-year-old company, based near Ulverston, was bought by current owner Mike Armstead in December 2006 from a US firm, when it was losing £5m a year and on the brink of administration.

Mr Armstead, who has since refocused the business, sees the rebranding as the final step in the company’s renaissance.

The company employs around 170 staff, split between its 80,000 sq ft manufacturing plant in Ulverston and a 60,000 sq ft distribution site in Barrow. Growing sales means staff numbers will hit 185 by mid-April.

The company made a £30,000 profit in 2009 – its first in six years – on a turnover of £12m.

“That’s down from a high of £20m in 2005, just before I came in,” said Mr Amstead.

“But it had to be culled and we managed the decline. We pruned back to the core business and now we are growing it again as a focussed profitable home fragrance business.”

The company is targeting 25% turnover growth in 2010 to £15m and will build further on this year’s return to profit.

The company has invested heavily in developing new products under the Wax Lyrical brand, such as a Spa range, a Royal Horticultural Society range and a Jelly Belly range.

Mr Amstead said: “The company was not trading on its biggest asset, which was the Wax Lyrical brand. I’ve spent the last three years launching products under that brand and now we are at the tipping point where Wax Lyrical can become the main selling name for Colony.

“Most people have heard of Wax Lyrical and people think they know the name, even if they don’t because it’s a term in common parlance.

“We expect to see that investment on the bottom line next year and we are seeing an increase in turnover and new customer enquiries now.”

In the last couple of months the company has also invested more than £250,000 in new manufacturing machinery.

The company wants to increase the proportion of its products made in the UK from 45% to 85% by the end of 2010.

“Before there were things like table decorations and Christmas decorations, which were all imported. We have none of that now. The only accessories we do have complement the range, such as tea light holders.

“There are challenges with the cost base, although that gap is narrowing and manufacturing ourselves gives us massive flexibility to meet demand. Our lead times are more fleet of foot.”