In spite of the not-so-distant recession, Pillarbox Envelopes has taken a bold step. The privately held firm, which manufactures, prints and personalises envelopes of all shapes and sizes, is moving sites and eying ambitious growth.
The Haydock, Lancashire-based business has acquired land and constructed a new site that it will move into in the middle of next month. In doing so, it hopes to improve accessibility to the site, as well as giving its brand more prominence.

Pillarbox is the commercial division of the Lockie Group – a £2m-turnover business that includes Lockie, which manufactures and supplies church collection envelopes, and Hammond and Harper, which is a supplier of clerical products.

Hammond and Harper was acquired only a year ago when Lockie Group was looking for a small business to purchase as a bolt-on.

This diverse group has now set up a design studio that, according to managing director Bob Pooley, has made the businesses wholly self sufficient.

The traditional business of church collection envelope manufacture and supply at the Lancashire site was first established 40 years ago, whereas Pillarbox is young in comparison – it was founded just four years ago.

Necessity not luxury
However, Pooley argues that the commercial envelope arm had already outgrown its 836m2 site, so moving to the new 1,347m2 site, which it is scheduled to do on 18 June, is a necessity not a luxury. In addition, he saw an opportunity in the recession – mainly due to the impact the downturn has had on the building industry.

And now the new site, Pooley says, will give the company a much more prominent and easily accessible location – and may even lead to further purchases. Of course, it would be great to grow, especially if it’s organic growth, Pooley says. But we are equally looking into another acquisition if it’s the right thing to do.

Pillarbox handles a large volume of church-related work and produces bespoke envelope products. However, as the church business is seasonal, Pooley says its multi-skilled workforce has enabled it to diversify. We have a really good customer service in every part of the business, which has enabled us to continue to win new work, he claims.

Pillarbox’s customer base is now drawn from across the commercial spectrum and includes local authorities and charities, as well as professional, industrial and business users. Its products are sold throughout the UK and while there are a broad range of customers and many markets, Pooley says the business is not dependant on any one sector for a disproportionate level of its activity.

Despite a reduction in growth in May and June last year, when the recession was in full swing, Pillarbox has grown year-on-year from 2006 to 2009. And we are still gaining new customers, Pooley adds.

As with many printers in the current tough economic climate, the company finds itself under the cosh in terms of paper price increases. Paper prices have hit us, Pooley says. You have to ask where will it stop? Just how genuine are the mills with their increases? He believes the mills have adopted a very short-term strategy. We know some printers that are panic buying paper, and then the mills go and put their prices up again. It is a vicious circle.

Keeping it niche and simple
Pillarbox has had to remain competitive with its prices in order to retain clients and attributes this to its continuing success. It’s all about unique customer service and we are second-to-none, Pooley says.

We are very strict with credit checks and we have been quite successful as a result of that, he adds. We have a customer base that consists of thousands of small orders, which works for us because there’s no big risk involved.
At the current site, while the company is yet to achieve any environmental accreditations, it has been quick to adopt a green stance, and the envelopes it produces are now made from recycled material and the group recycles 90% of its waste.

Pooley believes that the business will continue its growth into the future, mainly because of the niche nature of its work. Our product is a bespoke envelope product and we’re unique in that, he says. And with the space to grown in the new site, its success looks set to continue.

PILLARBOX FACTFILE
Location Haydock, Lancashire
Managing director Bob Pooley
Turnover £500k
Lockie Group staff 20
Lockie Group total turnover £2m