Neville Johnson
At the time of our investment Neville Johnson was focussed on the manufacture and installation of high-quailty bespoke home-office furniture and fitted bedroom furniture. It was one of the leading players in its market sector, with company sales of £17 million, and had a deserved reputation for the quality of its product and service.
The partners' genuine enthusiasm and passion for our company inspires confidence in the decisions we make.
Working with Neville Johnson
Investment process
We invested £4.3 million for a 58% shareholding, raising £5.3 million of debt as part of the acquisition financing. The incumbent management took a 40% shareholding.
Growth process
Soon after our investment, the Company was hit by the financial crash of 2008/9. However, our early assumption regarding the resilience of Neville Johnson’s specific market proved to be correct and the Company experienced only a relatively mild downturn with sales falling by just 6%. From that point on, the Company recovered rapidly and with our assistance expanded its business by establishing a new product area of staircase renovations and renewals as well as acquiring Tom Howley, a small high-quality kitchen manufacturer and retailer, out of administration, which proved transformational.
Exit process
The investment in both Neville Johnson and Tom Howley brands enabled sales to double to over £30 million despite trading through a recession. At the time of the acquisition, Tom Howley traded from three showrooms and had sales of only £1.5 million. The business was quickly turned around and the sales run-rate at the time of exit in 2014 was £12 million from six showrooms with a long-term potential of thirty showrooms. The business was sold for £21.6 million in a secondary management buyout to Alcuin Private Equity in 2014. At the time, the business was making £3.3 million EBITDA from sales of £33 million and with a very strong growth trajectory on the back of the Tom Howley showroom rollout and continued growth in staircases.