Exclusive: Keeping the customer king is secret of Rixonway's success

A YORKSHIRE-based kitchen maker yesterday delivered record results and forecast that sales would keep growing despite the public spending squeeze.

Dewsbury-based Rixonway Kitchens, which is the only UK kitchen manufacturer working solely in the social housing sector, saw its revenues increase by 23 per cent in the last financial year to 29m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by more than 30 per cent to 5.5m, from the previous year's record performance of 4.2m.

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Under chief executive Paul Rose, the company has been transformed from a small regional kitchen manufacturer into the market leader.

Mr Rose, who has worked in the housing sector for more than 30 years, led a 27m management buyout of Rixonway in 2006.

Yesterday, he predicted that the financial problems at social housing repair group Connaught would have no impact on Rixonway's performance, adding: "Some of the other companies (Rixonway's competitors) have missed the point – that the customer is king."

Speaking exclusively to the Yorkshire Post, Mr Rose said that an investment in technology to make the company more efficient had been one of the main reasons it had achieved a record year.

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He said Rixonway was constantly striving to find ways of delivering products more quickly.

The company has also established a new division in the independent merchant sector.

Rixonway employs 419 staff, which is an increase of around 15 on this time last year.

Mr Rose said: "Our customers expect high quality products and service and we constantly review our offer to ensure we remain ahead of our competitors.

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"A key factor in our growth is our ability to react quickly to customer requests and market changes; we have been successful in finding ways to set us apart from the competition.

"Despite tough times in early 2010, we have continued to grow the business over the first and second quarters.

"We secured a significant number of new long-term contracts, particularly in London and the South East.

"Clearly, we will have to wait and see the full details and extent of the austerity measures in the public sector, but we have factored reductions in spending into our forecasts for the business. We believe we are well placed to continue to grow our market share."

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Formed in 1978, Rixonway manufactures more than 12,000 rigid kitchen units per week, from its 170,000 sq ft manufacturing facility in Dewsbury. It has a nationwide team of 40 on-site designers.

Rixonway recently joined forces with building contractor Wates to provide more than 550 kitchens for the Ocean Estate Regeneration project in east London.

The contract is worth 350,000 over two and half years.

Rixonway also supported the Harrogate Homeless Project's hostel refurbishment by donating a family kitchen from its Trieste range.

Mr Rose has established tenant liaison and corporate social responsibility projects. These include initiatives to help people find jobs, and projects to support disabled and elderly residents.

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Rixonway recycles all the wood waste from its manufacturing process.

The company has invested in its IT infrastructure and recently installed manufacturing plant software to improve efficiency and reduce waste.

Academy to encourage engineers of the future

Rixonway Kitchens recently invited Yorkshire schools and colleges to visit its facilities as part of a strategy to encourage links between education and manufacturing.

The company's Engineers of the Future Academy is an apprenticeship scheme that will see outstanding school or college leavers start a training programme every year.

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It will offer training to equip them for a long-term future at one of Yorkshire's biggest manufacturing companies.

Nick Greenall, a Rixonway Kitchens spokesman, said: "Our academy will provide candidates with practical education and experience in a selection of manufacturing fields.

"It is a genuine opportunity for people to go as far and as fast as their abilities and ambitions allow."

The company was recently commended by The Department of Work and Pensions (DWP) for its work in encouraging disabled people to find jobs.