A Tees Valley transport business has emerged stronger from one of its toughest ever challenges. Billingham-based Nicholson’s Transport increased market share by a quarter during the recession, at a time when many transport businesses were forced to close.The company was also able to complete a restructure on schedule – forming the Nicholson Group - despite ending a long-standing relationship with its bank.
Group chairman David Nicholson said the company had come out of the downturn stronger and wiser. He said:
“This business has been through three recessions but this current one was so different in that the banks just shut-up shop despite what their PR teams were saying. We had been planning to restructure since 2007 and needed funding to achieve that, but the banks were extremely reluctant to lend against property and certainly didn’t want to hear from logistics firms. “That forced us to rethink all of our plans, but I’m pleased to say we have come through on schedule having learned some valuable lessons.”
Nicholson’s initially discussed its restructure plans with its bank in 2007 in an effort to bring greater independence and direction to its operations. But with bank support not a possibility, the 20-year-old firm sought alternative arrangements and has agreed to sell property at its base and lease back the site. That has helped the Nicholson Group clear its lending commitments while growing its existing business interests and investing in new ventures.
The Nicholson Group, which employs 50 staff, now comprises transport businesses in Billingham and Doncaster, a specialist Hiab (lorry-mounted cranes) operation and storage firm Box Clever.
The Group has also recently set up Learning in Logistics Limited, to serve the training needs of the logistics sector.
Mr Nicholson added: “We have delivered the restructure despite the banks saying we wouldn’t survive past December 2009. They didn’t want to understand our strategy for moving forward but we have achieved that regardless and paid back all bank borrowings.
“The recession has had a devastating impact on the logistics sector with many firms going under but there was no way we were going to roll over. We have actually come out far stronger with each of our companies independent and more client focused.
“The main lesson we have learned is to not have too many financial eggs in one basket. In future, we won’t have a situation where we rely too much on one funder, or indeed rely on banks at all. Instead we are spreading our risks and improving our relationships with different banks, and looking at alternative funding methods.”
Given Nicholson’s experiences, the company now plans to help other SMEs facing similar challenges. Please visit http://www.thenicholsongroup.co.uk/ for further information.
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