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Executive Report: One to watch Wolverhampton-based RM Group Services Ltd has expanded its range of hire activities and plans to open new outlets by the end of this year. Robert Aplin reports. Originally established by MD Mark Tolley in the early 1980s, Wolverhampton-based RM Group Services Ltd offered tools and compact plant for hire, as well as a range of sales products. Having sold the business in the early 1990s, Mark re-acquired RM in 1999 and set about re-developing the operation in 2003. The key appointments of Adam Rowland as Commercial Manager in 2004 and Mark Tolley's brother, Roy, as Sales Manager in 2006 led to the formation of separate divisions within RM and this management team is now looking to expand beyond the company's Wolverhampton base by establishing additional outlets that will open by the end of this year. From its existing Trysull Road site, RM Group now trades as RM Hirefix, RM Plant Services, RM Service Centre and the soon-to-be-launched RM Toolfix Direct. Hirefix offers power tools and compact plant up to 1.5 tonne mini excavators - principally Kubota 750kg micros and Volvo EC15B machines - and 1.0 tonne high-lift and The company also sells a range of power tools and accessories including Festool, DeWalt and Ryobi brands, as well as fixings and fastenings, sealants and adhesives, site electrics, workwear and PPE. "We offer everything for the general builder, electrical contractor and professional woodworker serving a whole range of fit-out trades. Sales account for 40% of Hirefix's turnover." Extensive plant fleet RM Plant Services, already serving a wider geographical area, offers a fleet of 75 items of plant, including Volvo excavators and Ausa dumpers, both up to 9 tonne capacity, Stephill generators up to 26kVA, Terex single and double drum rollers, fuel bowsers and CompAir two-tool compressors. The largest item in this fleet is a RM Service Centre is a complementary operation, maintaining and servicing both RM HirefIx and Plant Services fleets, as well as customers' equipment. "We have over 20 years' experience in repairing and maintaining customers' plant and tools to the highest standards. We hold a large stock of replacement parts and we've got everything from spares and lubricants to PAT testing and sharpening facilities. This activity further strengthens our one-stop-shop strategy." Launching this month, Toolfix Direct is a web-based business, described by Adam Rowland as "supplying a broader range of power tools, builders' metalwork, structural fixings and fastenings and hand tools for sale than the RM Hirefix outlet, which concentrates more on fast-moving items. There are discounts for booking on-line and customers have the option of collecting from the Hirefix depot should they not want to wait for delivery. If customers order pre-noon, they can collect the same day and, if they order after 4pm, they can collect from 7.30am the next morning." IT investment In spite of all these new divisions, Adam Rowland believes that the company's biggest decision was to invest in its IT platform. At the start of this growth path, RM invested in an inspHire Office Edition software system. "With our plans to become a multi-depot operation, we needed to look for alternative hire management software to our 'green screen' system. We chose inspHire because the system is easy to use and you didn't have to be a computer buff to be able to use it. More importantly, the team behind the system offers high standards of after-sales service. The tailored reporting always gives us the information we want, when we want it, and the combination of the workshop module, with the softwareÕs ability to mix hire and sales, make it stand out from the crowd." RM's turnover has increased from £25,000/month in 2004 to currently £80,000/month and "it is still increasing and we are maintaining 75% utilisation on every item in the fleet, although we are having to work harder for orders." Having outgrown its existing outlet, RM is looking to re-locate to larger premises in the area that will house both its Plant Services and Service Centre activities. The hirer also plans to add powered access equipment to its Plant Services operation at the new depot. In addition, RM is looking to open two further Hirefix outlets in Walsall and Dudley, as well as to re-locate its existing premises, which could move to a separate location to Plant Services and Service Centre. All in all, this company could well be one to watch out for in the future. • Executive Hire News › Archives › September 2008 › Executive Report › One to watch
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