5 minute read
Whether the contracting job
Glasgow fi rm A Alexander & Son
is now well into its third generation of family ownership. But while the business has grown beyond all recognition, the family feel remains
BY NICK MARTINDALE
Test of time
A Alexander & Son managing director Stewart Alexander (left) with his father, company chairman James
The name of Glasgow-based A Alexander & Son is something of an anachronism. Th e business was set up in 1962 by Andrew Alexander and William Tawse, initially trading as Alexander and Tawse Ltd. It was only when William retired in 1975 and Andrew’s son James, who had joined as an apprentice in 1964, took on a more managerial role that the current name was adopted. Now, the business is run by James’s son Stewart, who joined as an apprentice in 2001 and moved into management in 2007. Last year, James took on the role of chairman, with Stewart running the business as managing director.
Th e early days were a case of slow and steady growth, recalls James. “When I started we didn’t even have a van, so we travelled in the tram carriage,” he says. “We did quite a bit of work for what was Yarrows Shipyard, and also did work for the Glasgow Eye Infi rmary, the British Shoe Corporation and Safeway.”
Over the years the business has made a number of acquisitions – the last one in 2003, when it took over M&G (Glasgow) Ltd, adding signifi cantly to staff numbers and customer base. “In 2003 we’d lost a key customer when Safeway was taken over by Morrisons. Taking over M&G brought us a new batch of customers, including care homes and housing associations, and we’re still working with them today,” says James.
IN AT THE DEEP END
By the time Stewart, now 34, came into the offi ce in 2007, the economy was starting to take a turn for the worse. “I learned the ropes in diffi cult waters, which in retrospect was better than if I’d come in during the good times,” he says. A contract with Dobbies Garden Centres helped it weather the storm, and also introduced the business to Bernard Diamond, who was working with a Northern Irish contractor responsible for the mechanical element of the contract.
“We ended up starting our own mechanical division – Bernard is now a director of the
Company A Alexander & Son Established 1962
company – and that was a huge boost for our client base,” says Stewart. “Back in 2012 we were missing out on contracts because we couldn’t provide mechanical and electrical (M&E) services. Th e mechanical division has really boosted the electrical side; previously we might have had 20 jobs at £50,000 but we’ll now do two or three worth £1-2 million, along with a selection of smaller contracts. Th e mixture of contracts has made it much easier to manage our resources.”
Today, the business covers everything from multi-million-pound M&E contracts to changing sockets in domestic properties. Care homes is an area of expertise; it’s currently undertaking contracts in Inverness, Musselburgh and Duns.
“Th ere’s obviously a big drive in the market for them but we seem to have that M&E formula right, and we’re getting quicker at doing them,” says James. “But we take on work across the whole spectrum, and we tend not to say no to anything.” Other notable projects from recent years include the Ofgem Commonwealth House in Glasgow, Clyde Gateway East and Bertie’s Restaurant in Edinburgh.
A small works division keeps two electricians and two apprentices employed. “We do maybe 10 EICRs a week, which can be for homeowners, letting agents or private landlords,” says Stewart. “We also have a contract with the Bield housing association to do PAT testing and emergency lighting testing. Th e small works side is predominantly reactive but we’ll maybe do 50 jobs a week, and we also can borrow guys off -site to go and do a small job as it comes in.”
Th e company employs 55 people, and expects turnover to increase to around £6.5 million in the current fi nancial year – a signifi cant increase on the fi gure of around £4 million that it has hit in recent years. “Five or six years ago we were doing around £2.5 million a year, so our turnover and margin have increased quite a lot,” says Stewart. “Th e ambition for me, though, is not having a glossy turnover fi gure but having a sustainable business. One of the lessons during that 2008-9 period was how quickly the market can change, so we run it quite conservatively and keep money in the business, as we might need to weather any potential problems just around the corner.”
GROWTH FOCUS
Th e business is targeting a number of new areas, too. Earlier this year Gavin Bell, previously of Bell Alarms, joined to start up a fi re and security division in response to demand from clients. “We’ve been on the NICEIC’s training course and we’re recruiting now for fi re and security engineers,” adds Stewart. “Th at will take us into housing associations, and open doors for the contracting side as well.” Building up the maintenance side is another priority.
Th e company relies on apprentices as a source of labour, and takes on between two and four each year. “We have electricians who were thirdyear apprentices and trained me when I started who are now foremen,” he says. “Most of our electricians are homegrown; it’s hard to fi nd the right staff , so we fi nd it easier to ‘grow our own’.”
As the third generation at the helm of the business, Stewart is determined to make sure the fi rm continues to be run in a sustainable manner. “I want it to be here for another 50 years and beyond,” he says. “I’m the keeper of it just now and will look after it the best I can, and maybe pass it on to another generation in the future.”
Having his father has been vital in helping him grow into his new role. “It’s testament to his ability to bite his lip and let me make a mistake,” he says. “Th at’s been invaluable. But it’s a family business and that shines through the whole company. A lot of people have been here since they were 16 or 17. Even though we’ve grown in recent years it’s still that kind of environment, and that’s the way we’d like to keep it.”
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Nick Martindale is editor of Connections
