Recruitment firm sets sights on wider world

BWB and Penman have joined forces to create a significant player in the recruitment sector.

The privately owned recruitment businesses, which are based in Horsforth, near Leeds, decided to merge to help them win more clients.

Andy Preston, a director, said: "The merger gives us a more stable platform for future growth. It also opens up the prospect of shared learning between the two businesses, because they operate in different sectors."

BWB specialises in medical sales positions while Penman's focus is on mid to senior level appointments in the consumer, energy, and facilities management sectors.

The merged BW Penman business has 25 staff and hopes to hire another five in the next few months. It operates in the medical, energy and consumer sectors.

Turnover is expected to be about 2m this year, which is an increase on the companies' combined turnover of 1.6m in 2009-10.

Its global network of energy clients means it is involved in finding the right candidates for hard to fill jobs in places such as Kazakhstan, Russia and Nigeria.

Mr Preston said: "The business has been turned round from having a very strong UK focus to a much stronger global presence.The medical division operates across the world, with a particular strength in German-speaking countries."

The consumer division's long-standing clients include Arla Foods and Premier Foods.

About 40 per cent of the business is with overseas clients. Recent projects have included work with a Scandinavian medical device supplier who was looking to recruit a European managing director.

Mr Preston added: "The UK energy recruitment sector is intensely competitive with around 200 companies operating in it. This is why BW Penman is focusing on the rest of the world.

"The company found that the food manufacturing sector remained relatively strong during the recession, because food is a necessity. With the planned increase in Government funding, the energy sector has the potential to create jobs which means a significant rise in recruitment.

"The UK and the US have the chance to compete with other countries on cleaner fuels but need investment in all key areas including the recruitment of a highly skilled workforce."

The company plans to open an office in Sydney, Australia, by mid 2011, which will serve as a base for Australia and the Far East.

"The recruitment sector in the UK is mature, while the Australian recruitment sector is going through a period of expansion,'' Mr Preston said.

"It's important to understand the local culture. For example in Kazakhstan they are looking for people who have skills which may not exist in the local economy.

"The two merged businesses were side by side, so no additional funding was needed to enable the merger to go ahead."

The merged business has moved from the WIRA Business Park near Horsforth, to a nearby head office off New Road Side in Horsforth.

Mr Preston added: "In five years' time, we would like to be a 10m organisation through organic growth and there's also the possibility of growth through acquisition. There might, for example, be a retail recruiter that fitted nicely and was available. There might also be a European business that suits us in the long term."

He said other possible acquisitions in the longer term could include a contract recruitment business in the energy sector.

Reasons behind the merger

BWB was founded in 2006 by Brent Dransfield along with Ben Riley and Wayne Underwood. Penman – a recruitment firm based on the same business park as BWB in Horsforth, near Leeds – was founded in 2007 by Andy Preston, who had previously worked with major brands such as Heinz, Waitrose and Primark.

Mr Preston said yesterday: "Brent retired from the business in 2009 to spend time with his growing family. There was no internal individual within BWB for the MD role which is part of the reason we merged the business and I took the position and integrated the companies."