Overhaul of business is growth spur
Jul 25 2008 by Karen Dent, The Journal
AN oil and gas business has boosted its turnover by 50% in three years after a root and branch transformation of the way the company operates.
Even the name of ContiTech Beattie Ltd in Ashington has changed as part of the business’s integration into German parent group Continental AG.
The company, which supplies specialist hoses and fluid handling systems and was formerly known Phoenix Beattie Ltd, has expanded further into the lucrative export market and increased turnover from £16m in 2004 to £24m last year. It forecasts that this year’s figure could reach £28m.
Managing director Andrew Esson said: “We have achieved growth in all the main business areas. We have seen growth in the UK and in our export markets.
“Export accounts for around 75% of our turnover. It used to be around 60% export. We improved our sales capability and have developed our overseas representatives who have been provided with technical and sales support.
“Our sales used to be reactive, we would wait for inquiries. We have become more outward-looking and are going out into the marketplace.”
ContiTech Beattie has won three additional overseas contracts this year with AP Moller of Denmark, US company Magnum Transcontinental and Norway’s DOF, each worth around £1.8m.
The business is now looking to the emerging Chinese and Australian markets and is continuing to expand in its existing export markets of Singapore, the Middle East and Norway.
Mr Essen says profits have doubled since 2003 and staff numbers have increased from 76 to 94. Prior to being taken over by Phoenix, the business had been run as the family-owned K&B Beattie for 40 years.
“We have literally changed every aspect of the business. My remit was to help make the transformation from a family-owned business, which was still struggling with moving from a family business ethos,” said Mr Essen.
“There was very much a traditional firefighting approach. When a problem arose, they would solve it and move on. There was a lack of planning and forward thinking. But we produced good products with good brand names and good people.”
The overhaul included improving morale, communication, employment benefits and introducing training. The company has since been awarded Investor in People status and also scooped a Learn Direct award.
