Disposables UK sets five-year plan as it prepares for HQ move

David Burkill, managing director of £16m turnover family-run business Disposables UK, said the five-year plan is to reach £30m. The 25-year-old company manufactures and distributes paper disposables and associated cleaning and hygiene products for the ‘away from home’ market, which includes sectors such as leisure and education. Currently, the business is spread across four sites totalling 107,000 sq ft in the Meltham area, but by the end of June it plans to have consolidated its operations on to one site of 140,000 sq ft, also in Meltham. Mr Burkill said: “That will have a really positive effect on our business in terms of our effectiveness and it will enable us to improve on the lean manufacturing we’ve been working on over the last few years. “It will give us a lot more office space and it will give a real lift to our workforce because they will have a better working environment so it’s really exciting times for us.” The move is expected to cost a total of around £600,000, which includes some refurbishment. Disposables UK has acquired a long-term lease on the property. Part of Disposables UK’s expansion plans include continued investment in new technology, which Mr Burkill said is necessary to remain competitive. The firm, which employs around 100 people, has just finished putting in a new fully automatic production line and various new packaging lines, costing the firm £1.7m. Mr Burkill said: “The way we’ve built the business is by investing in better technology. We’ve never made anyone redundant and we’re proud of that.” In its 2012 financial year, the accounts of which are still being audited, Disposables UK, which has no bank borrowings, recorded a turnover of £16m with pre-tax profits of £800,000 expected. This year, Mr Burkill said he is expecting sales to grow by 10 per cent and, with a five per cent rise in profits. He added: “Once we have moved we think we can start increasing turnover more rapidly and start making better profits.” Disposables UK’s two main brands are Bay West, a partnership with American corporation Wausau Paper, and Optimum Professional. The firm’s Bay West range of washroom dispensing products for work environments were used during the London 2012 Olympic and Paralympic Games at venues within the Olympic Park. Bay West is manufactured under licence by Disposables UK. Mr Burkill said that the work was won as a result of Disposables UK’s sustainability and green credentials. Disposables UK was the first UK manufacturer in the cleaning and hygiene industry to carry the coveted EU Ecolabel accreditation. The business also recently won contracts to supply the Scottish Exhibition & Conference Centre (SECC), parts of the London Underground, Chatsworth House and South Yorkshire Fire and Rescue Service. Currently, 85 per cent of Disposables UK’s customers are in the UK, with 15 per cent abroad. But Mr Burkill hopes to expand into markets such as France and Germany. Disposables UK was formed in 1987 by the late Trevor Storer and his wife Diane, who is today company chairman and owner. Their daughter, Emma Wood, and son, Paul Storer, work as marketing manager and national sales manager respectively within the firm.