Entu (UK) PLC (the Entu Group) are suffering serious financial challenges which has seen a substantial slide in the value of their shares in recent times and according to the Double Glazing Blogger, likely to be placed into administration unless a third party purchaser can be found very quickly for all or part of the group.
Entu (UK) PLC, is registered at company house as Co reg 08957339 and were formed on the 25th March 2014. Also registered at the same address is ENTU (UK) HOLDINGS LIMITED Company No. 09237919 formed 26th September 2014.
According to financial details on the website Endole their last set of accounts showed they had a turnover of nearly £88m (down £11m) employ 360 people and have seen their nett worth fall from £7m to -£8m
The group consists of Zenith, Weatherseal and Job Worth Doing and was formerly part of the Brian Kennedy empire until he resigned in September 2014
For many trading conditions this year have been tough and the possible demise of a large group is just a sign of the times we live in. Although there was a bubble immediately after the Brexit results (which masked the challenges which lay ahead) this year as the pound has weakened, we’ve seen raw materials squeeze margins and homeowners tighten belts and reduce spending on major items.
However there are two interesting things which stem from this.
Firstly is that many of the investment decisions made by city investors are done purely upon the money making effectiveness of the operation. Because direct sell companies have always made money selling volume produced shiny white window frames, they expect them to do so in the future.
Few if any, of these investors appreciate, the seismic shift towards more costly but highly desirable wood foil finishes with authentic detailing, like the R9 flush sash, the Bygone or Vintage sash window from masterframe or new jointing methods like TIMBERWELD® which has changed the value proposition away from the big brands with mass produced products, towards smaller, less well known producers, making prettier windows.
Secondly is the length of investment term. Given most SME’s don’t have a planned exit, their focus tends to be towards making the best product which gives the best chance of survival. The larger investors however, take a longer term view.
Sadly some will not wish to take on the existing company with the debts and financial commitments so the fate of the 360 employees is likely to end with the business however, if this business fails there will be others wishing to expand their own empire (and re-employ) through the acquisition of group businesses, because they see the future, post Brexit, as extremely promising.
Faced with 2 or 3 years of challenges and reductions in the number of installations, then there is every expectation that following Brexit the country will see a boom period, buying British products from British companies for British homes and the bigger your organisational net, the more you’ll catch.
Perhaps it is now time to invest, in new products, in new innovations, in new market share, because the time to shine is just 18/24 months away
It will be most interesting to see how the larger companies compete without new products to stop the consumers slide towards smaller, independent family businesses.