Trevor Hebdon - Reflections on the last nine years with the H&H Group

In an interview with Borderway Magazine editor Jennifer MacKenzie, Trevor Hebdon, who stands down as the H&H Group chief executive at the end of May, reflects on his role over the last nine years.

Trevor Hebdon

When you started your role as chief executive in January 1999, what did you find?

There was concern and unease about the business at all levels - from shareholders, customers and staff - and where it was going. It became apparent fairly early on that the business was also haemorrhaging financially and this was confirmed in the publication of the annual accounts that year which showed a significant loss.

On analysing the business, what was the route you believed needed to be taken to re-shape it for the next millennium?

The business as a whole was heavily reliant on one sector – livestock - which at that time accounted for 85 per cent of turnover and whilst the early part of that decade had been extremely buoyant, by its end livestock sales were continuing to feel the impact of the BSE crisis, as was the rest of the UK livestock industry at large.

At that time, there were fears among the farming sector that the livestock marketing business would be a decreasing priority. Was that the case?

Livestock marketing today remains very much an integral part of the whole operation. Nine years ago it was clear that it was at the heart of the Group and that it was a key component what needed to be done was not to be so reliant on a sector which was in difficulty because of factors beyond our control. Today, livestock marketing represents 55 per cent of turnover but, at the same time, its market share has grown alongside the other operating companies.

What were the first steps taken to achieve this new broader focus for the Group?

We undertook a major review of the Group during the first 18 months and, in
that time, we re-structured the Group, assuming the status of a private “plc” with greater corporate responsibility and setting up six operating companies which gave people, at all levels, clarity of focus and increased responsibilities for their part of the business and how they were going to contribute to its success.

What has been the result of this re-structuring to date?

To ensure greater diversity across the Group, we have expanded our activities both by acquisition and organic growth. We recognised the skills and attributes of our people working within the Group and helped them develop those skills as well as recruiting some good new executive directors and staff. We also set about re-branding ourselves. The power of the H&H brand was underestimated and we have continued to strengthen it, both regionally and nationally.

In financial terms, has this greater diversity paid off?

A reflection of its success must be in the confidence shown by our shareholders and the share price which has increased nearly threefold. Shares nine years ago were worth £4.40, the last shares sold made £12.75. Turnover has risen from £5.8 million to £8.8 million, operating profit is up from £700,000 to £2.1 million and profit before tax has increased from £208,000 to £824,000. As a result, shareholders have also benefited with earnings per share increasing from 20p to 69p and dividend doubling.

Whilst the Group’s future will no longer lie in your hands, how do you see the next decade?

I have only played a small part and acted as a catalyst in putting together a great team of executive directors and staff. My successor’s challenge will be to further grow the Group and its profitability.

During the last nine years, what have been your greatest challenges?

I could have done without the pension scheme deficit which peaked at £2.3 million and is now down to less than £800,000 which is manageable and being funded with a view to eliminating that deficit over an agreed period of time. Foot and mouth in 2001 and 2007 were major challenges, as is Bluetongue today. Everything else has been a normal business challenge. The pension scheme deficit was as a result of government intervention, foot and mouth in 2001 was caused by government inaction and in 2007 by government negligence and, as for Bluetongue, I rest my case.

Presumably, this last nine years has had other highlights for you personally?

Borderway has hosted some fantastic events drawing people in from across the industry. In 2001, our charity auction raised £33,000 for the RABI, Hospice at Home and the Air Ambulance; the Limousin society centred its international congress here in 2004; and the NBA staged its Beef Expo event at the centre in 2006, attracting more than 5,000 people. Last year we staged our own event, Borderway Agri-Expo which was so successful that another is already being planned for this autumn. Other highlights for me have included various reciprocal business arrangements – for example, with UA in the re-stocking of farms after foot and mouth in 2001 and the working relationships we continue to have with the Bank of Scotland following the acquisition of its agricultural insurance book, the Cumberland Building Society and its commercial insurance and residential lettings referrals and the development of H&H Financial Management with Arc Eden.

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