Dragons’ backing sees solar group add more staff

ONLY a few years ago the founder and managing director of solar installer Ploughcroft, Chris Hopkins, was forced to sell his car and work six months without a wage to keep his business afloat.

Now, with a £5m turnover and healthy profits, the company is rapidly expanding – and a recent appearance on the BBC’s Dragons’ Den saw its sales double.

In the two weeks following Chris Hopkins’ appearance on the television programme at the end of July, the company received more than 1,000 customer enquiries.

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Sales of Brighouse-based Ploughcroft’s solar photovoltaic (PV) system installations and its renewable energy installation training rose by 100 per cent in August and September when compared with sales in June and July.

Mr Hopkins told the Yorkshire Post sales were 500,000 and 600,000 for June and July respectively, rising to £1.2m and £1.25m in August and September. Sales for October are expected to hit £1.5m, said Mr Hopkins, who is from Halifax.

Backed by Dragons Deborah Meaden and Theo Paphitis, Ploughcroft has taken on 20 new staff, raising the total to 50. Last month saw the opening of new offices in the South West and the Midlands and the firm now has eight renewable installation training centres across the UK.

Mr Hopkins said he expects turnover to double again over the next year to £10-£12m, and there are plans to open another three more branches over the next 12 months, as well as employ another 20 staff. The company’s turnover was £2,653,829 and its pre-tax profits were £115,000 in 2010, increasing to approximately £5,000,000 and £600,000 respectively in 2011.

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After more than two hours of interrogation by the Dragons – of which only seven or eight minutes were broadcast on television – Mr Hopkins accepted a deal of £120,000 for 25 per cent.

He said: “I’ve had a lot of people sending me emails after the show asking why I was giving the business away? But what I wanted to achieve was to get Ploughcroft on the television and to present the feed-in tariff, which I did, to homeowners across Britain. I wanted the business to double in size. It’s worked brilliantly.”

Feed-in tariffs were brought in by the Government in 2010, offering homeowners the opportunity to make money for generating their own green electricity. Mr Hopkins said people wanted “a credible solar roofing company”.

Mr Hopkins added: “I knew Dragons’ Den would have a big impact on the business, but it really has completely transformed our lives and our sales success.

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“With such an unprecedented level of enquiries, it’s been crucial that we maintain first class customer service and deliver on our quality installation and training promises. The only way to keep delivering at the same level as before Dragons’ Den was to bring on new staff and expand Ploughcroft’s operating area.”

And with the government’s new flagship energy saving plan, the Green Deal, being rolled out in 2012, Mr Hopkins is anticipating another busy year. From next year, people will be able to access up to £10,000 upfront to pay for energy efficiency work, repaying the costs through savings on energy bills.

Although the future is looking bright for his firm, it has been no easy ride, said Mr Hopkins. In 2009, the company’s turnover was £1.2m and it made a £200,000 loss.

He said: “I had to keep my head and not let go. I had to sell my car and work without a wage for six months to make sure the business survived. It was the massive hit of the recession. Everything just went down. A lot of other building companies threw in the towel. But I kept that spirit and determination.”

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The dynamic of Ploughcroft has changed significantly over the years from its origins as a traditional domestic building and roofing business. Now the business is 95 per cent renewable energy installation, three per cent training and two per cent building and roofing, said Mr Hopkins.

Mr Hopkins also spoke of the challenge faced by SMEs trying to secure loans from the banks, adding: “I think what banks should do is employ more entrepreneurs who can understand entrepreneurs who have got the ambition and drive. Too many banks employ too many plodders that are unwilling to take risks but expect SME businesses to take all the risks and it’s not fair.”

Emphasis on training

Ploughcroft was started in 1997 by Chris Hopkins and his father as a traditional domestic building and roofing business.

Following his father’s retirement in 2004, Mr Hopkins took the helm.

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Part of his vision was to help other members of the roofing industry to improve their skills.

As well as developing and delivering the National Federation of Roofing Contractors (NFRC) Solar Roofing Course, a four-week ‘career change’ course suitable for all construction workers was added to the range earlier this year.

In September 2006, the Ploughcroft Training Centre was granted awarding body status by CITB, City & Guilds and Mr Hopkins had achieved NVQ status within one year.

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