Turnover grows 20% at Cutwel since MBO

1 min read

Cutting-tool specialist Cutwel has enjoyed significant growth since the firm’s management buyout (MBO) in May 2018, when existing owners Paul and Mary Hawksworth decided to retire. Managers Adam Gillard, Graham Short and Shaunie Mangham undertook the MBO with the backing of Leeds-based private equity firm NorthEdge, and have overseen a 20% rise in turnover, with total revenue increasing from £15.6 million to £18.73 million.

In the 12 months since the MBO, the directors have appointed a cohesive and knowledgeable middle management team to manage the day-to-day running of the business. Working with the new HR manager, the team provides specialist development and support to the various departments. Regular management training is a key component in helping develop management abilities and drive future success. Furthermore, the Cutwel Academy, led by product training manager Liam Scaramuzza and training team manager Caroline Cooke, provides comprehensive training for new sales staff.

Over the past year, headcount has increased from 52 to over 80, with the strengthening of sales, warehouse and finance teams proving instrumental to ongoing growth.

Cutwel has also invested in process management. Barriers between departmental communication have been lifted, allowing for more collaboration to better co-ordinate and implement company strategy. A complete restructuring of the warehouse was also undertaken, with barcode scanners streamlining arduous tasks.

Technology has fuelled much of the advancements made throughout Cutwel in the past 12 months, both from a sales and operational perspective. Newly introduced systems like Refract and Phocas aim to give a better understanding of the company’s strengths and weaknesses through intelligent call listening and data analysis. On the marketing front, newly installed AI-driven web optimisation software provides online users with a more personalised shopping experience.

While Cutwel is very focused on its long-term sales and operational goals, it is also aiming to engage more with the community and improve its environmental footprint. An ESG committee was formed in Q3 2018 with an aim of giving its staff a say in how the organisation is run. From this, several themed charity days have been organised supporting both national and local charities.