D3 steps ‘softly’ on the trail for acquisitions

The firm recently launched a new furniture showroom at its Hull headquarters after a £50,000 investment.

This year marks its 25th anniversary.

The company was founded by Richard Denley in 1988 selling printing services and materials. Today it is a £6m turnover business with 40 employees and an additional office in Leeds.

Martin Shaw, who joined the company in 2005 as joint managing director, said the company is currently experiencing growth across each of its four business divisions.

He also said that the business may make further acquisitions, either to fit into its existing divisions in Leeds or Hull, or to expand geographically into the Manchester or Newcastle areas.

D3 Office Group has made several acquisitions in the last five to six years.

But Mr Shaw said the focus is on organic growth, adding: “We are not actively looking for companies to acquire.

“We are just softly keeping an eye out.”

The group is expecting to turn over £6m in its current financial year which closes at the end of December, up by £1m on last year.

Mr Shaw said: “The interiors division is growing fast at present and we expect it to be one of our strongest business areas over the next few years, especially as we plan to develop our capability in office fit-out work.

“Our workwear business is also growing quickly following the acquisition of Diamond Print Express in November 2012. Workwear is a brand new sector for D3 and we’re excited about its sales potential.

“Our existing clients have embraced the new workwear offer from D3 and with the right marketing focus we see it becoming a large percentage of our overall business.”

Mr Shaw added: “The overall UK office supplies market is in slight decline at present.

“However, we are bucking the trend – in part through acquisition, but also in taking a strong proposition to mar- ket.”

Mr Shaw believes there is also a shift taking place in the traditional office environment, with technology playing a big part in this, not just in terms of the equipment people have on their desks but how they work and interact with others.

“We are definitely noticing organisations demanding more collaborative working environments, resulting in informal areas, breakout spaces and workstations for hot desking.

“The idea that we will all have a fixed desk that we work at from Monday to Friday will become a thing of the past with an increase in flexible and remote working; and companies need to adapt or they will get left behind.”

He said that his company is well placed to capitalise on these trends having set up strategic partnerships with suppliers such as Orangebox, Herman Miller, Gresham and Bisley.

“The office furniture market is usually a good indicator of the strength of the economy and we are seeing organisations starting to spend more in this area, either buying new items of furniture or undertaking complete refurbishments and fit-outs.

“We’re also seeing a change in the style of furniture being demanded as companies look at how best they can future-proof their offices,” Mr Shaw added.