Supplier plans relocation

16/11/2011

A Hull-based independent supplier of copying machines and other office equipment is planning expansion and relocation after completing the sale of its home of more than 20 years.

George Baker stayed on at KRL Group when his partners retired two years ago. He bought the business and positioned it to compete with the national operators by investing in technology.

As managing director, George leads a team of 20. The sale of the premises to Headstart Properties has helped to secure the company’s future at its offices in Ferndale, off Kingston Road, Willerby. But the deal includes an opportunity to act after two years and address the long-term issue of KRL Group’s low profile.

“The business started down Hedon Road and has been here for more than 20 years but because we’re tucked round the back of the houses a lot of people don’t know we’re here,” said George.

A courtyard which was created after the company acquired garden space from neighbouring houses provides some space for delivery and collection vehicles, but the long-term dream is to move.

“We’ve agreed a 15-year lease with Headstart Properties but there is a break clause after two years because I would like to move the business, maybe to Melton where people can see us and where access is easier,” said George.

The decision to stay on when the founders of the business moved to sell it was prompted by a desire to continue working and by concern for the staff.

“I bought into the business in 2000 but I didn’t feel ready to retire in 2009 and I didn’t want KRL Group to be absorbed by a big company which would almost certainly have got rid of all the local jobs and pushed everything into a back office in London,” said George.

“So we’ve modernised the business, investing in technology which enables us to support our customers by logging into their systems remotely. We’ve changed the business model because if you stand still you definitely go backwards and we want to be in the sort of high-tech environment that is appropriate for what we do.”

David Spencer, a director of Headstart Properties, said: “We have done a few deals over the years with Garness Jones and we became aware of this opportunity. KRL Group is in an area that is residential so when they do move we envisage building houses on that site as part of the Headstart Properties portfolio.”

George added: “Garness Jones found us someone who was interested in developing the land and the deal that resulted enabled us to clear the mortgage on the property and take control of our business. Headstart are happy for us to stay here for a couple of years so that gives us time to find new premises. It’s all worked out rather well really.”