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Today, Europe tomorrow...
Page 22
Page 23
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RH Group has a large European presence — Chris Tindall asks its directors about their future expansion plans.
Nigel Baxter's first words when we meet in his office in Nottingham are delivered in a much more jovial manner than their content suggests: -We've just been discussing how stressful it is working in this industry."
Baxter is transport director at RH Group,the European freight forwarder and haulage company that has doubled its turnover and profits in the past live years. His comment relates to the presence of a phone mast on the group's site ( for which it earns rent) that seems to be interfering with the company's own electronic signals.
In the absence of the company's MD. Baxter's brother Ian. it is made clear he will be unable to answer questions relating to recent acquisitions. But what about the controversy that surrounded the group's use of Eastern European companies and drivers? "We don't have any Eastern European drivers employed by the company now." he remarks. "What we have is subcontracted drivers.We sourced from Estonia and that pre-dates its accession to the EU. Domestic lengths are, broadly speaking, done by our British fleet."
Baxter has been with the family business for 23 years -"more than half my life"and he still enjoys most aspects of the job. But he reveals: "My intention was to go into agriculture. I always had an interest in mechanical and practical things. But my father was often suggesting to me to be more sensible, to get involved in the business."
Eventually he followed his father's wishes and began working in the warehouse.An LGV licence soon followed. Around this time, the company was regularly involved in delivering to Baghdad; a job he describes as "very interesting". As are his views on the way times have changed:-You can see a difference in the breed of drivers and the kind who would do that sort of driving.
"My recollection is that it was less problematic than today. Drivers were more resilient. Today they are on the phone straight away. You didn't get the incessant communication that you do now."
Learning curve
Baxter became transport manager aged just 24. By way of explanation he says:"I don't ever say no. I was nervous and apprehensive I needed some good support. which I got, and I had to learn very quickly from drivers. I spent the best part of a year taking a map to bed with me, rather than a hook, literally learning Continental geography. I didn't want to he embarrassed or bamboozled by drivers that clearly had better knowledge than I did about those things."
RH Group is the second biggest operator of European road freight. Ills certainly healthy financially: its last accounts showed a pre-tax profit of Dm on an .€80m turnover, producing a margin of almost 4%. Baxter says: "The bulk of our turnover is from our European roadfreight operation.
"We've been successful in developing a strong partner network over the past few years. Andrew [Baxter's other brother and operations director] and Ian worked very hard to develop that with the premier league of privately owned businesses. "We were also at the forefront of using Baltic States haulage. That added significantly to the margins."
Cheap foreign drivers Alt. the baste rit Luropeans. RH Group has been criticised on web forums and in the press by UK drivers who believe the company has turned its back on domestic expertise in favour of cheaper subcontractors from the Baltic States. At this point Andrew Baxter passes by Nigel's office and is brought in to comment on this area of the company's business.Was it t criticism?
"I don't think it was," he begins. "' shouldn't we use Eastern European trucl find it a bit bemusing that people take protectionist approach. There are peopl Lithuania living in poverty; there's a di shortage in the UK. [Critics] are telling t refuse to use these people in order to prr the drivers in the UK. Every aspect of we've done has been legal."
Nigel warms to this theme: "Drivers understandably angry about this. [But] t was no future working on that basis. I: hadn't employed those drivers, we would I fewer domestic trucks... it kept the carg those trailers. It protected jobs, not the c way around."
Andrew has the last word on the topic:"I at the number of successful UK internati hauliersit's pretty limited stuff."
RH Group works with about 30 part who deliver half of the company's loads. It has between 50 and 60 depots on the Conti' and Andrew says they are essential to company's success. What is also "massi important" is the structure of the deliverie If a truck leaves the Nottingham and Thu rrock depots every night bound Frankfurt, a truck sets off back home I Germany on the return journey.This ismirr in other Continental countries.
Future plans Don't assume the company is content will European market: -We're starting to con trate on China," Andrew reports. "It's t feature of our business going forward. concern is that today, 95% of our busin( European. What's going to happen to th.s. might make growth and profit difficult ii future. We want to invest in China the la growth market.
"The company is in very good shape,witl staff turnover," he concludes. -In four oi years we more or less doubled our p turnover and assets. I hope that we can dc again in the next four years." •