Trunki launches bespoke design tool
BGF portfolio company Trunki, the market leaders in the world of children’s travel, have launched a very bespoke service to little travellers across the UK!
Exclusively on trunki.co.uk, globe-trotting tots can hop online and totally bespoke their very own ride-on suitcase. With 9 different parts and 10 different colours ways their ‘made for me’ Trunki will be awash with a rainbow of colour and will definitely create Trunki envy from onlookers.
Children can mix it up ‘Van Gogh’ style with red coloured wheels, purple hubs, pink horns, black trim and green catches, even the fabric straps and handles come with alternative colour options.
Trunkis are made from the same lightweight durable plastic as adult suitcases and is tested to the extreme, ensuring it can take all the wear and tear from any travelling tot. As with all Trunki suitcases the ‘made for me’ Trunki comes with a free five year guarantee.
Best of British – All ‘made for me’ Trunki suitcases will be manufactured in Trunki’s UK factory. Customers can order safe in the knowledge that when their creation arrives it will be air mile free, so all that’s left for them and their family to do is start clocking up their very own Trunki air miles as they hop around the globe!
Is Britain enjoying a manufacturing renaissance?
by David Wighton
One thing British manufacturers have not lacked in recent years is unsolicited advice. Sales may have been hard to find and finance harder still, but there has been no shortage of helpful criticism. Report after report has bemoaned the alleged underperformance of UK manufacturing and identified a multiplicity of failings. Companies were too short-termist and lacking in ambition, said the critics. They did not invest enough, particularly in technology. They were too timid about attacking growth markets in emerging economies.
Whatever the truth of these claims, one thing is clear. They do not apply to some of the smaller companies that are now leading Britain’s manufacturing renaissance.
Take VTL Group, the Huddersfield-based motor components manufacturer where BGF has just agreed a £4m investment. Bruno Jouan, VTL’s Chief Executive, believes the critics have a point when it comes to the sector’s commitment to long-term investment in technology. “In the past, if you generalise, most businesses in the UK, and certainly in the automotive sector, have been really short-sighted in terms of investment in innovation and technology.” And he concedes that VTL probably was too. But over the past couple of years the company has been investing heavily in the technology behind its precision engineered transmission and turbo components which it supplies to leading manufacturers including Cummins, Toyota, Renault and Nissan. It has ploughed £2m into a new technology centre to be the base for all its research and development and for the training of its new generation of engineers. “This shows our commitment to be a world-class manufacturer and a strong partner for our customers in the future.”
Among the common criticisms of British manufacturers is that they should be thinking more in terms of solutions and increasingly looking for ways to offer broader packages of products and services.
That is exactly what VTL has been doing. “If you just ‘make to print’ it is only for today and tomorrow. You have to move up the value chain. You have to offer your customers technical solutions where they can rely on you rather than other people. You must become, if not indispensable, then less disposable.”
Paddy Collins, Chief Executive of Aubin, an Aberdeen-based supplier of chemicals for the oil industry, also stresses the importance of focusing on the customers’ needs rather than the products. “Although we sell chemicals, what we really do is sell expertise and knowledge to people who don’t have that.”
Aubin has spent five years developing a low density fluid that can be used to provide buoyancy for subsea oil equipment allowing them to be moved around the seabed more easily. While he is convinced he has a world beater on his hands, Collins concluded that having the chemical was not enough. Aubin also had to produce the engineering solutions wrapped around the chemical. That requires a big investment, not least in new people, which is why Collins decided the company needed some external capital.
“We needed money in the bank to have some confidence that we could go forward, rather than doing it on a shoestring and a hope. We wanted to hire new people and in Aberdeen there is a real shortage of good quality personnel. To persuade people to leave a good safe job we needed to give them the confidence that they were going to have the resources to do what we wanted to do.”
Aubin opted to go with BGF, which invested £2.25m in February 2013, partly because it was prepared to take a much longer-term view than most investors. “Some of the things we are doing will take time to come to fruition and BGF wasn’t looking to get its money out in four years’ time.”
Collins certainly can’t be accused of lacking ambition. Sales jumped by a third to £6.25m in 2013 and are expected to grow at a similar pace this year. “We think we could go faster than that. We have a unique material and the subsea industry is worth tens of billions of pounds annually.”
Mark Bryant, Head of Manufacturing at BGF, regrets that such ambition is not more common in British manufacturing. “So many of the manufacturers I have met have been severely bruised surviving the last five years or the last twenty years and their ambition is very limited. They are happy to tick along.” Manufacturing tends to be more cyclical than services businesses and many entrepreneurs are worried about becoming overextended if they are dependent on banks for finance, he says.
Another weakness critics often point to is that British manufacturers, and indeed UK companies in general, have not made the most of growth in emerging markets.
That is certainly not true of Aubin, which exports 80% of its sales and is very strong in the Middle East. Nor can the accusation be levelled against Rob Law, founder of kids luggage maker Trunki, whose now very successful business idea was famously rubbished by Theo Paphitis on Dragons’ Den in 2006.
“We looked at overseas markets from the outset, and South East Asia is now one of our biggest markets.”
Ironically, Trunki has done less well in markets closer to home such as France and Germany, where it has relied on distributors. Some of the £3.92m Trunki raised from BGF will be used to support the move to sell directly into France and Germany.
In the face of rising costs in China, Trunki recently joined the growing trend for British companies to repatriate some manufacturing to the UK. Law explains that having local manufacturing reduces shipping costs and the company’s carbon footprint, as well as cutting the amount of capital tied up in stock and making it easier to respond quickly to market changes.
He was also keen to grasp the PR opportunity of being able to claim that the Union Jack-adorned Team GB Trunki case it produced for the Olympics was made in Britain. Law signed up a supplier in Devon but the company then got into financial difficulty and Law decided to buy it out at the end of last year. The focus now is on turning the operation into a “world-class manufacturer”, he says.
While companies in many different sectors are reshoring some manufacturing to Britain that is not really an option for Bullitt, which designs and makes rugged mobile phones. David Floyd, the company’s co-Chief Executive, says that much as he would like to see his products made in the UK there is no realistic alternative to China and Taiwan, which dominate the manufacturing of phones. Rising costs are an issue but Bullitt has recently been able to get much better terms from its suppliers thanks to the strengthening of its balance sheet provided by BGF’s £3.5m investment in December 2012. This enabled it to move to normal 30-day terms with its suppliers rather than paying a 30% cash deposit when placing an order and settling the rest on shipment.
Although its balance sheet was stretched, Bullitt has been cash-positive almost since it was formed four years ago. Set up by Floyd and two colleagues who had worked together at Freeplay Energy, the Aim-listed wind-up radio group, Bullitt has had little need for external finance until recently. Floyd turned to BGF having become very frustrated with banks. The company was generating cash, arguably had a relatively low-risk business model and a management team with a solid track record, but Floyd said that the banks were just too risk averse. “We dealt with a couple but to be honest they couldn’t give us what we wanted.”
One of the frequent criticisms of British manufacturers is that many do not pay enough attention to design despite the wealth of design talent in the UK. That cannot be said of Trunki or Bullitt, for which design is at the heart of their business. Bullitt’s biggest sellers are a range of rugged mobile phones it designed for Caterpillar (CAT), the American construction equipment giant which has licensed its brand for other products such as boots, clothing and watches.
In the competition for the mobile phone licence, Bullitt saw off challenges from some of the industry giants, including Samsung. Floyd says Bullitt’s key attraction for CAT was that it was proposing to come up with entirely new designs that reflected the CAT brand rather than merely slapping the name on an existing product. Bullitt’s designers worked with the designers of CAT’s vehicles at its headquarters near Chicago and Floyd says the result was a phone that has all the attributes of the CAT brand. The handsets use a lot of steel and have mouldings that echo those on CAT’s vehicles.
Bullitt is generating heady growth with sales rising tenfold to £10m in 2012 and nearer £30m expected in 2013. In addition to the phones it makes under the CAT and JCB names, Bullitt will next year launch a range of audio products for a well-known high street name and it is working with another household brand.
Floyd hoped to have some of the products for the high street retailer made in the UK but found he could not get prices close to those on offer in Asia. This is a reminder that international competition remains intense. But there is no doubt that the prospects for British manufacturers – and for manufacturing in Britain – are brighter than for some time.
Nowhere are the hopes higher than in a sector where Britain was almost written off just a few years ago – automotive. The turnaround since the financial crisis has been remarkable and VTL’s Bruno Jouan sees no reason why it should not continue. The big car makers are keen to rebuild the supply chain in Britain and are getting strong support from the government.
Big challenges remain, not least in terms of skills shortages. “There haven’t been enough people going into engineering over the last 20 years,” says Jouan. But the way manufacturing has been put back on the agenda in the last three years has been very helpful in terms of attracting young people into the industry. “Now we are seeing young kids who have better results choosing to go into engineering because it is being promoted and there are so many good stories about people being successful.”
Jouan says the UK is a great place to do business and believes that British manufacturers can confound the critics and take on the best in the world, including the Germans. And that is a Frenchman talking.
Trunki scores copyright victory
BGF portfolio company Trunki has scored a significant copyright victory after the High Court ruled that Hong Kong based competitor PMS International had infringed on Trunki’s designs for its ride on suitcases.
The result will mean PMS are blocked from selling their version of the case in Europe and the company will also be forced to destroy remaining stock.
“This is a real victory for the creative industries,” said Trunki founder Rob Law. “People who put time and effort into innovating and creating new products should not have their ideas ripped off by lazy organisations that piggyback on pioneering work.”
The full story was covered by the Sunday Times and can be read here.
In September 2012, fellow BGF portfolio company Wow! Stuff also succeeded in preventing thousands of counterfeit versions of its toys from reaching shops by targeting French and UK suppliers and enlisting legal and patent expertise.
Regional Director – South
Paul joined BGF in May 2011 and heads up our South West and South Wales region, covering the South West of England, Berkshire, Hampshire, Oxfordshire and South Wales from offices in Bristol and Reading. As well as working on new investment opportunities in the region, he currently sits on the board of four BGF investee companies and is a member of the BGF national Investment and Executive Committees.
Prior to BGF, Paul worked as a private equity investor for 16 years with 3i and LDC and also led Grant Thornton’s South West Corporate Finance advisory team as Partner for six years. He qualified as a Chartered Accountant with KPMG in Manchester and holds a First Class Degree in Economics and Accounting from The University of Sheffield.
“I joined BGF on the day we launched – the opportunity to create a new and unique investment business focused on helping SMEs to grow was both exciting and challenging. It is great to see that our supportive, long-term approach to funding and supporting ambitious management teams is in demand. We are achieving two of our key objectives – helping exciting private companies to grow, and increasing the size of the equity growth capital market in the UK. We will continue to invest in our regional team to enable us to work with many more ambitious companies.”
Alex joined BGF from KPMG Corporate Finance in February 2012 and is responsible for sourcing and executing investments throughout the South West and South Wales.
Since joining, he has been involved in over 10 completed investments and currently sits on the board of a number of these in support of their growth aspirations.
Alex graduated from the University of Warwick with a degree in Mathematics in 2004 and qualified as a Chartered Accountant with KPMG in 2007.
He now lives in Bristol, enjoys playing tennis, squash and golf and participating in at least one ski trip a year.
- BVG Group (Board Observer)
- Canburg (Board Observer)
- Magma Global
- Prezola (Board Director)
Ned works in BGF’s investment team in the South West and is responsible for finding and completing new investment opportunities as well as continuing to work with the boards of BGF’s investee companies.
Ned joined BGF in January 2012 from Maven Capital Partners (formerly Aberdeen Asset Management) having worked in their London office since 2007. He has completed more than 20 equity investments and has been involved with the boards of most of these companies. Earlier in his career Ned worked in corporate finance with BDO Stoy Hayward and previously qualified as a Chartered Accountant in 2001.
Ned graduated with a BSc in Oceanography with Mathematics from Southampton University. He lives in Bristol and is married with three young children. Ned is an improving golfer, a keen snowboarder and a declining footballer.
- Nonwovenn (Board Director)
- APSU (Board Director)
- Trunki (Board Director)
- Direct Online Services (Board Director)