Winning grip on the reins
Nov 7 2006 By Brian Nicholls, The Journal
North-East Business Executive of the Year Gordon Banham, chief executive, Hargreaves Services.
At 19, Gordon Banham abandoned hope of a university education, writes Brian Nicholls. His father had just died and he had to take on the family's coal delivery business.
Not the happiest way to get onto the business ladder. But tough though the decision was at the time, it has proved, 23 years on, to be the right one yet again.
Gordon has just been announced as the 2006 North-East Business Executive of the Year. His award comes largely on the strength of his achievements at Hargreaves Services, where he has been chief executive for five years.
Today it is one of the UK's biggest bulk haulage businesses and the largest independent importer of domestic and industrial coal.
And bulk haulage is only part of the story. It produces and markets coke and petcoke products. It has also set up an operation to recycle ash from electricity generators. The cost of tipping such ash into landfill sites is both costly and wasteful. Hargreaves converts the ash for use in block-making, roadmaking and cement industries, as well as for grouting. It processes and supplies many other minerals too.
In short: success all round.
Gordon who, in addition, is this year's Wearside and County Durham Business Executive of the Year, has in a very short time led a management buyout, floated the company successfully to the tune of £21.5m on the Alternative Investment Market and, in little over a year, with a run of shrewd acquisitions, has guided the company up to its present size.
What impressed the award judges, besides Banham's individual performance and the look of the balance sheets over three years, is the company's environmental approach.
Sir Ian Wrigglesworth, chairman of the judges, said: "Gordon keeps up the high standard of leadership and management expertise of his predecessors.
"Hargreaves has been immensely successful under his leadership. He has taken it to the Stock Market and is expanding it at a phenomenal rate. He is a worthy entrant into the Hall of Fame."
Its aim to be "clean and green" lies, after all, in a relatively unsexy sector of industry, where it would be easy to revel in grime and just go for profit.
Hargreaves Services, based at Esh Winning in County Durham, which was named Durham and Wearside Company of the Year at the North-East Business Awards in April, has been able to benefit from the fall in domestic coal production.
To that end, it has invested heavily at ports. But also it has moved beyond its core activity.
The group has also extended its work range and expertise through several joint ventures, and through the £12m acquisition of Monckton (correct) Coke and Chemical Works near Barnsley, the UK's only independent provider of metallurgical coke.
It has also recently bought Granutyre, a Sheffield-based tyre recycling business, another bulk liquid transporter - Gilbraith, of Lancashire - and also bought Norec, a Barnsley-based industrial service of £23m-plus turnover, with Powergen as a primary customer.
After growing that family business of his all those years ago to four coal depots and 40 employees, Gordon sold out to fuel giant Charringtons, which then had him run its entire coal and oil distribution business.
He went on to steer that company through a buyout by CPL, whose British fuels business then joined Charringtons to create CPL Distribution. And who ran that £200m operation? Gordon.
Bob Young, honorary president of Newcastle United, later brought him in to run long established Hargreaves, which he then owned. When opportunity arose for an MBO there, Banham was the choice to lead it, with finance director Peter Dillon.
Its consequent maiden results on the AIM showed sales 104% up and operating profit 121% higher. Latest interims report 104% sales growth at £70.8m, with profits up to £3m (£1.25m)
On receiving his award at the Marriott Gosforth Park Hotel in Newcastle, Mr Banham said: "It's an absolute privilege to win this award. The thing about being a successful business executive is picking the right team and I am just realising the wealth of talent there is in the North-East.
"It's fantastic to work with those people and we have 1,400 staff and hope to be close to 2,000 next year. We are like a football team - we argue from time to time but when we get on the pitch we kick in the same direction and put a lot of goals in.
"I would like to thank One NorthEast who make doing business here easier and I hope that we will be part of the North-East for many years to come."
Gordon, 42, who came to the North-East from Norfolk, enjoys horse riding as a relaxation.
But there's no easing of reins at the office. He says: "I want a solid, sustainable business that people are proud to come and work for. We now have 1,400 employees and are heading towards a £200m turnover."
So it sounds like Gordon is riding right on course there too.
