Investment vehicle from Clipper’s Steve Parkin supports major acquisition

ENTREPRENEUR and investor Steve Parkin, the man behind the Clipper Logistics’ success story, has launched an investment firm which has backed the acquisition of a major interiors firm.

Leeds interiors firm Southerns, under the direction of Andy Kendall-Jones, has acquired Bolton-based Southerns – which used to be part of the same company – after “significant” but undisclosed investment by Mr Parkin’s Knaresborough Investments.

The new group will comprise of 70 employees in the Southerns Yorkshire and North West branches, and Ralf Capper Interiors, with a combined turnover of £17.5m and a client list including construction giant Carillion and Russell Group universities including the University of Leeds.

The business split 10 years ago, but is now back, consolidated as one business. Founder Mr Kendall-Jones has ambitions to double turnover and workforce in the next 2-3 years.

The firm is on track to turnover £20m and make £1m in pretax profits in its first year.

Mr Parkin and Mr Kendall Jones met over their love of Leeds United Football Club and the logistics magnate proactively sought to support the growth of Southerns after seeing a business model for the firm.

Mr Kendall-Jones said: “Since getting involved with brand consultancy Propaganda, and starting talks with Clipper’s David Hodkin and Steve, our focus has been on FF&E (furniture, fixtures and equipment) and managed services to all businesses across all sectors, predominantly in the public sector.

“This means that we provide a long-term solution and are contracted that way, in the same way that Clipper has long term contracts with its clients and with their help we are trying to create jobs and grow the business as quickly and efficiently as possible.

“The great attraction of working with Steve and David, is that we can tap into their knowledge about maximising that return as quickly as possible.”

Clipper’s chief financial officer, Mr Hodkin, said: “What attracted Steve and with his venture capital business to Southerns was that it’s a business that’s grown consistently over the years, has been consistently profitable, has a great management team and a fantastic customer base.

“The acquisition in Manchester gives Southerns the critical mass to move forward.”

Veteran businessman Mr Parkin has said he is keen to invest in growing, strong businesses, having launched Clipper Logistics in 1992 and bringing it successfully to the London Stock Exchange last year.

Mr Parkin said: “Knaresborough Investments is about putting cash and equity into businesses that are profitable and in which we can see a working model for the future of that business. I want to invest in quality Yorkshire-based businesses.

“We must look at dozens of businesses and start-ups a year, but I think we’re quite good at what we do, the success of Clipper proves we know what we’re doing.”

On his predictions for the future of his business he said: “In all my business dealings, if you start being too stringent, you become obsessed with these targets. We will be fluid on what we do with the business.

“This investment will allow us to accelerate the growth of the business and marks the first major acquisition for Knaresborough.”

Mr Hodkin said of Knaresborough Investments: “It’s about identifying good quality, Yorkshire-based businesses in which the investment can make a real difference, giving a boost to a business that already has a proven business model and is already profitable. We’re looking for people who have a novel business idea that fits in a niche.”