Engaging approach unlocks growth at Keycare
A PHILOSOPHY of engaging with and encouraging its employees to help steer the future of the business has helped Keycare to post record profits, according to its managing director.
Speaking to TheBusinessDesk.com, David Ross revealed that pre-tax profits at the lost and stolen key recovery and replacement specialist were around £800,000 for the year ended October 31.
The record figure is on turnover of £4.25m – up from £2.5m the previous year – and one million live customers.
The second generation family business, founded by the late Geoffrey Parker 35 years ago, works with major organisations including Marks & Spencers, Lloyds Banking Group and The AA.
Contracts with insurers and brokers also include 1st Central, Leeds-based Jump Money, Penguin Insurance and Direct Choice.
The incident management business, which sells its services to other businesses, enable people who have lost their keys or been burgled to have locks and keys replaced.
Mr Ross, who holds 10% of the shares in Keycare with the remainder being owned by members of the Parker family, moved the company into larger 3,800 sq ft offices in Shipley, West Yorkshire, last month from premises in the neighbouring village of Baildon.
“The move was a big statement of what direction the business is going in,” he said. “We are in a much stronger position than some other people in the market. We have close conversations with the regulator so we avoid some of the pitfalls seen by others.”
He said the company would employ 30 staff by the end of the year as it increases its manpower to cope with additional clients and work.
Keycare suffered a trading loss in 2009 – the only one since Mr Ross joined the company in 2001 – as it felt the effects of the credit crunch. Mr Ross said the key for the company’s recent growth had been its reaction to that slump.
“The key to it was employer engagement,” Mr Ross said. “We had an interesting debate at the time about the situation at board level with one side suggesting jobs could be cut to reduce the payroll.
“But I said that’s not the way to go and I felt morally that’s not right. I said the key here is to show better leadership. Let’s be transparent with where we are and what we need to do to take things forward. And everybody has risen to the challenge magnificently.”
Changes have included cutting the number of customer service telephone hours outsourced to a third party by Keycare. It means some of Keycare’s staff work on weekends but it has reduced outgoing fees.
Additionally, staff who contribute ideas that are employed by the business are rewarded on a quarterly and annual basis under the company’s Values in Action scheme. Mr Ross said this has encouraged loyalty among staff with more than 90% having worked for the company for four years or more.
Other perks include disrectionary bonuses and all staff enjoying their birthdays off work.
Going forward, Mr Ross said Keycare would consider targeting overseas markets following the recent launch of Keycare in Ireland on a licensed basis.
And he is hopeful that an ongoing initiative with Suffolk Constabulary called SAFEkey – a lost key recovery and key registration service – could be rolled out to other police forces around the country.
Asked if Keycare would consider looking at making acquisitions to fuel growth, Mr Ross said the company wouldn’t rule them out as it is coming from a healthy financial position with no debt on its balance sheet, but added there were no immediate plans or specific targets.
