Roofing firm owners in line for windfall

Mar 28 2008 by Andrew Mernin, The Journal

THE family owners of a roofing firm could be set for a windfall of up to £12.5m after selling their business to a national company.

Ponteland-based D W Tilley has been sold to support services group Mitie for £7.5m cash, minus outstanding debt, with a further £5m available depending on the future financial performance of the firm.

Mr Tilley was unavailable for comment yesterday, however his wife Rachel said the couple decided to sell up because “the price was right”. According to Companies House, Mr Tilley and his wife Rachel owned all but one of the firm’s 14,953 shares meaning the couple could eventually scoop close to £12.5m between them, although this is dependent on the firm’s level of debt.

Meanwhile Bristol-based Mitie has moved quickly to assure D W Tilley’s 140-strong workforce their jobs are safe.

John Telling, Mitie’s head of corporate affairs, said: “We are looking to expand the company by joining it with our existing businesses.

“There will be no job losses and we will be looking to create new jobs in the region.”

Mr Tilley will be retained by Mitie as managing director of its roofing business while D W Tilley’s senior management team will also assume new roles at the firm.

Sydney Nixon, who set up the business with Mr Tilley in 1983, will carry on working at the company as an operations director.

Over the last 25 years D W Tilley has grown from a small North East business into a national company with offices in nine locations including Manchester, Leeds, Walsall, Southampton and Cardiff.

The company’s impressive list of blue chip clients includes BAE Systems, Stagecoach, Peugeot Citroen, MFI, Arriva and Heinz.

Last year the company’s revenue stood at £14.3m to the year ending October 31.

In 2006 the firm saw its sales soar 55% as it reaped the rewards of taking over failed rival Four Seasons Roofing 18 months earlier.

Mitie, which employs more than 40,000 people, released its second half trading figures yesterday which showed activity in line with expectations. It said it would continue to seek acquisitions this year.

In a pre-close statement the company said: “Despite some uncertainty within the general economic climate in the UK, Mitie continues to see opportunities for growth in its own markets and within its client base.”