Hot Seat: navigating choppy waters at Ripon firm Wolseley

Last updated Nov 5, 2021

Few major employees in the Harrogate district have experienced more turbulent times recently than Wolseley.

The plumbing and heating merchants, which has a £1.8bn turnover, employs almost 5,000 staff globally, of which 270 are based in Ripon and 150 at a distribution centre in Melmerby.

Besides covid, this year Wolseley has been at the sharp end of Brexit and been sold to private equity firm Clayton, Dubilier and Rice for £308 million.

The man navigating the choppy waters is Simon Oakland, who has been chief executive of Wolseley UK since January last year.

Mr Oakland, who has a background in private equity, has been with the company in its various guises since 2012.

He doesn’t hide how difficult the last 18 months have been, particularly for staff in Ripon. The site, which opened in 1971, provides support functions, including accounts, payments, IT support and HR and have such felt the brunt of all the changes.

“As a business we have been through a lot of difficulties. There had been damaging cost cutting measures and we’ve been through a few strategic initiatives that haven’t been successful.”

The company, he says, lost customer focus when it integrated divisions in 2017. But a divisional restructure, completed in July last year, was the catalyst for recovery, he says.

The new suite at Ripon.

The figures back him up. In the financial year ending 31 July 2020, Wolseley lost £250 million of sales. Profit, forecast to be £60 million, came in at £6 million, partly due to covid.

But recently published accounts for the financial year ending 31 July 2021 show £75 million profit – considerably up on the pre-covid £54 million figure of 2019. Mr Oakland says:

“This is the first year of genuine growth since 2012.

“From August 1 last year we have had a strong recovery. The market is strong, but we’ve taken a lot of market share.”

He highlights the acquisition of 32 branches of Graham Plumbers in July as evidence of recovery.

Brexit blues

Brexit has not affected demand but it has disrupted the supply chain by making it harder for small European manufacturers to import into the UK.

It’s also created “real complexity” with exporting products to Northern Ireland, says Mr Oakland. The company now has to provide detailed certificate of origin forms and prove its products to Northern Ireland wont be moved on to the Republic of Ireland. He says:

“The process of importing from Europe is going to continue being a small stone in our shoe.

“The process of moving products to Northern Ireland is going to be very complex. Even with the number of exemptions in place now it’s incredibly complex. If those exemptions come off it will be even more complex.”

Until this year Wolseley was part of a FTSE 100 company called Ferguson PLC, which operates in the US, Canada and the UK. But its demerger from Ferguson and sale to Clayton, Dubilier and Rice led to huge change.

“The demerger caused a lot of work and that significantly impacted teams in Ripon, especially finance and IT. We were fully integrated on IT with US and Canada and had to migrate.”

Private equity firms don’t have the best reputations but Mr Oakland says:

“I spent 20 years in private equity. I get private equity inside and out. There are different styles. Some buy defunct businesses and liquidate stock. At the other end you have firms that understand the sector and try to support and grow the business.”

Clayton, Dubilier and Rice fall into the latter camp, he says, and “bring real strategic insight”. But it wasn’t an easy sell to staff.

“I took the decision in July 2020 to be totally open with colleagues and told them it was likely we would be sold to a private equity firm. They took a lot of confidence from the fact that I have been a partner in a private equity firm. That helped to defuse the uncertainty and the Chinese whispers.

“The real theme was that we would be able to tap into our independence.”

50 years in Ripon

Wolseley was founded in 1887, when Frederick York Wolseley launched the Wolseley Sheep Shearing Machine. The firm expanded into manufacturing and in 1899, the first Wolseley horseless carriage went on sale in the UK at £120.

It acquired a number of heating companies in the 1960s. Today plumbing and heating account for £1 billion of the £1.8 billion turnover. Your home’s boiler, pipework, bathroom fittings and gas and electricity meters could well have been made by Wolseley.

Part of the refurbished Ripon site.

The company opened its Ripon office on Boroughbridge Road in 1971. The site reopened this year after a £500,000 refurbishment, which included a new learning and development suite for training courses. Mr Oakland says:

“It’s completely transformed the business in Ripon. It was very tired inside.”

Mr Oakland was born in Dewsbury and his grandparents lived in Starbeck. He is based in Warwickshire and says he looks forward to his trips north:

“I love it. It takes me back to the places where I went to as a kid.”

He enjoys food and wine and tries to complete one or two triathlons each year. Training isn’t easy when you’re on the road three or four nights a week but after a period of upheaval, quieter times at Wolseley may be ahead. He says: