Russell & Brand on acquisition trail

Russell & Brand is seeking to strengthen its business by acquiring a competitor contract catering firm within a matter of months.

Speaking to Caterer last week, Russell & Brand chairman Jerry Brand revealed his company's results for 1995 and said it was now a priority to make an acquisition to grow further and achieve a stronger geographical spread.

"We are now the largest privately owned contract caterer in the UK and we are getting used to that position," he said.

"We hope to make an acquisition of a company with 100-150 contracts early in 1996 because we are ready for it," he added.

The company's bank was backing its expansion plans and it was also looking at the possibility of involving a private backer, said Mr Brand.

During 1995, the company doubled its operating profits to £1.22m and its turnover increased 21.37% from £28m to £35m. Currently, it is achieving a profit margin of 3.5% on turnover and the aim is to grow this to at least 5.5% within three years.

Managing director at Russell & Brand Tim Cookson said the company was also looking at expanding outside its traditional areas of business, industry and education contracts. "We are starting to make inroads into the health sector and are in discussions with some building maintenance companies so we can go for facilities management contracts in partnership with them," he said.

lThe company has beaten eight contractors to secure a three-year contract, worth £500,000 a year in turnover, with Yorkshire Water. The deal involves catering for staff at four sites.

It has also won a contract at the Salesian School in Chertsey, Surrey, from incumbent Fairfield. Halliday Catering also bid.