Parfetts prepares for transition
STOCKPORT-based cash and carry chain AG Parfett is “on the cusp of significant change”, according to chairman Steve Parfett.
The firm has recently implemented management changes ahead of the phased handover of control to its employees, with David Grimes recently taking over as managing director and Greg Suszczienia as trading director following the £20m sale of a 55% stake in the firm to an employee-owned trust in April 2008.
Parfett, who started the business the business with his father 30 years ago – the eponymous Alan Godfrey Parfett, who recently became life president – will scale back his own involvement to a three-day week role later this year, but argues the new management team has “youth, enthusiasm and energy on their side”.
“We’ve got a great young team in place who will be responsible for shaping the future of this business and they’ve got some great ideas.”
For instance, one of the things it has implemented within the past 12 months has been for directors to regularly visit customers within their own workplace, rather than just talking to them when they come into cash and carry outlets.
“It’s been very helpful,” he said.
The company has just filed accounts for the year to June 30, 2011, which saw
sales increase by 4% to £301.4m (2010: £289.1m), while pre-tax profits climbed slightly to just over £2.8m.
“It’s a very tough business environment but we’re more than holding our own and we feel we’re well set for growth in 2012,” said Mr Parfett. “We’ve been running the business as prudently as we can. Since the market turned in 2008 we’ve been more conscious of our costs.”
Indeed, the firm declared an exceptional cost of over £720,000 relating to redundancy payments during the year, as it trimmed its wage bill.
Staff numbers across its estate fell by 25 to just over 293.
The firm operates from six cash and carry depots and also has a small number of its own retail outlets. Parfett said the firm is not planning to extend its estate in the near future.
“It depends on finances.
“In the current environment, it would be difficult although I have to say that our bank, Lloyds, have been very supportive.
“We would like to expand when the time is right and if an opportunity came along we’d consider it.”
