Whitegoods installers for BBC’s ‘DIY SOS’ make a splash with new funding
Construction subcontractor rebrands and finds funding for growth
Location: Stevenage, Hertfordshire
Funding line: £350 thousand
Turnover: £1.7 million
Spying a gap in the market, electrical appliance expert Roger Taylor and skilled electrical professional Matt Pitt founded Kitchen Appliances Installation Ltd in 2003, providing a same day delivery, fitting and installation services for kitchen appliances.
“Kaboodle” as it is now known, has since grown to attract housebuilders and major consumer focused retailers that require skilled installation and fast turnaround. It is also the named supplier for hit BBC TV series, DIY SOS.
With 25 years’ experience with major appliance manufacturers, Roger’s expertise has been invaluable to the business’s success.
Roger, however, found that the kitchen installation market needed skilled teams who were not only trained in gas and as electricians, but are also able to work as plumbers and with kitchen furniture. It is for this reason that Kaboodle prides itself on its diversely skilled workforce.
By diversifying the business model to accommodate for the new online appliances market, both Roger and Matt have enabled consumers to purchase ‘white goods’ and have them delivered and installed either the next day or on a chosen delivery date. The rebrand to Kaboodle marked a shift towards retail installation services and warranty exchanges and repairs. In its traditional market, Kaboodle continues to work with mid-sized and regional housebuilders helping them install white goods for build programmes of up to 5000 homes every year.
Operating within the construction industry means that the business’s payment terms are typically 30 days after month-end. With high outgoing salary, stock and materials costs throughout this duration, Kaboodle required additional funding to bridge the payment gap.
After an initial introduction from Mark Critchlow of Clearview, Roger turned to Bibby Financial Services (BFS), to provide a £350,000 Invoice Finance agreement boosting cashflow and enabling the business to operate more effectively.
Roger said: “Unlike more traditional funders, BFS has a refreshing approach to funding SMEs in the housebuilding sector. It was an obvious fit for us as BFS is well versed in the construction sector with an astute view of the whole market. This, combined with the relationship-based approach, has enabled our business to continue to grow without cashflow stagnation.
Mike Calvert, Head of Sales, Bibby Financial Services commented: "We are excited to work with Kaboodle and to help their business go from strength-to-strength. We strongly believe in Roger’s business model and strategy. Moving from a situation where over 80% of the business’s work came from a single retailer to a diverse structure has been impressive.
“Now that late payments are no longer an issue, Roger can focus on the continued success of Kaboodle in a thriving construction industry market.”
Roger, further explains: “Having over 30 years’ experience in the home appliances industry, I wanted to work with a funder that understood our individual business needs and requirements as a niche all-in-one supply and installations firm.
“Having partnered with BFS, we are seeking to expand the Kaboodle brand and we have high growth aspirations to be the go-to kitchen appliances provider and installation service. “With housebuilding on the rise and further Government stimulus announced in October, we’re looking forward to expanding our business further.
“Having a funder with expertise in the construction sector, such as BFS, is a huge advantage to us.”
Additional comments on the EU referendum result
Speaking of Brexit, Roger Taylor of kitchen installation business Kaboodle said: “We haven’t seen a material change in activity since the EU referendum. The impact has been minimal and, if anything, we’ve actually seen work volumes growing in recent months.
“How Brexit will impact the construction sector in the long term remains to be seen. However, as we’re focused on retail contracts and housebuilding – two strong industries – I don’t anticipate it will impact us negatively and we have a healthy pipeline of work lined-up over the months ahead.”