Introduction to GB Oils Ltd - DCC plc
Transcript of Introduction to GB Oils Ltd - DCC plc
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Introduction to GB Oils Ltd
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Introduction� We are the largest independent distributor of
fuels and lubricants in the UK� Key products : Gasoil, Kerosene, Diesel, Petrol,
Lubricants and heating services� Key markets : commercial, industrial,
agricultural, retail forecourts and domestic � Coverage throughout Britain � Currently trading under 32 fuel brands
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Oil Refinery GB Oils Artic
Customers
GB Oils Depot
The Supply Chain
GB Oils Rigid
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How did GB Oils Develop?
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BP (Scottish Fuels), ASCO
2001 & 2003
Depots : 14
Staff : 220
Customers : 37,000
Volume : 440m Litres
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Shell Direct (Emo)
2004
Depots : 36
Staff : 500
Customers : 47,000
Volume : 600m Litres
Key
: New facilities
: Existing facilities
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Carlton Fuels
2006
Depots : 6
Staff : 118
Customers : 4200
Volume : 500m Litres
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Local Brands (NEast Fuels, T&C, Sc Isles, Martindales, Townson, Grampian, Baxter Johnson)
2007 - 2008
Depots : 18
Staff : 254
Customers : 44,000
Volume : 750m Litres
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CPL Petroleum
2007
Depots : 39
Staff : 481
Customers : 74,000
Volume : 831m Litres
Key
: New facilities
: Existing facilities
: New & existing in one
location
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Southern Counties Fuels
2008
Depots : 8
Staff : 135
Customers : 36,000
Volume : 225m Litres
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Chevron ED Business
2009
Depots : 26
Staff : 356
Customers : 100,000
Volume : 1bn Litres
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The Consolidated Business
Pre Integration Facilities : 179
Post Integration Facilities : 128
Staff : 1540
Customers : 346,000
Volume : 4.1bn Litres
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Key Suppliers
� Relationships with all key major suppliers
� Volume Split (approximate)� BP : 24%
� Texaco : 24%
� Conoco : 16%� Shell : 11%
� Esso, Mabanaft, Total, Greenergy : 25%
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Typical Integration Synergies
� Depot & HQ locations� Staff, particularly central support� Tankers� Change of mindset on margin management� Improvement in working capital
� Debtor days� Payment terms from suppliers� Credit management
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The Market
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The Competitive Environment� Large, fragmented
competitor base � Approx 200 competitors
nationally*
� Many small, highly localised operators
� Consolidating market : Only one other player in excess of 1bn litres
� Regional competitor pricing
* Source : Yellow Pages Competitor Review
GB Oils Market Share
GB Oils, 18.5%GB Oils, 12.8%
GB Oils, 8.1%GB Oils, 12.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Scotland North South Total
Region
Mar
ket S
har
e
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Key Competitors� Total Butler, a subsidiary of Total� Watson Petroleum � Bayfords Ltd� WCF Fuels� NWF Fuels Ltd, a subsidiary of NWF plc� Pace Petroleum Ltd� Localised competitors : Goff Petroleum (E
Anglia), Brogan Fuels (Scotland), Crown Oils (North), Pearts (North East), Wessex Petroleum (South), Severn Fuels (S Wales)
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Changes to the Market Place
� On-line ordering� Potential restrictions on heating fuels� Changes to specification of transport fuels� Turbulent economic times� Managing working capital
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The GB Oils Business
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Product Mix
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Customer Mix
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Added Value & Retention Products
� Premium Fuels : Diesel Extra, Premium Kerosenes, Ultra 35
� Boiler Maintenance� Lubricants : Shell, Texaco, Castrol, Q8,
Own Brand� Fuel cards� Planned delivery / Direct debit
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Scale of the Business� Over 893,000 customer records� Over 300,000 live customer records� No of deliveries : 88,512 per month� Turnover : Over £165m per month� No of direct debits : 57,000� Number of employees : 1,540 staff � Number of tankers: Approx 800
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Company Vision
� To be a multi-brand provider of fuels and lubricants, distributing 8 billion litres of fuel that continues to achieve a Return on Capital Employed (ROCE) that enhances shareholder value
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Key Strategies
� Continue profitable business acquisitions that offer strategic benefits�Aim at 20% return
� Improve margins through up-selling differentiated products : Ultra 35, STP, Diesel Extra
� Key focus on reducing debtor days� Increased focus on customer acquisition :
increased sales targets, proactive campaigns
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Key Strategies
� Introduce new on-line channels � Ensure that the business infrastructure is fit for
purpose for the long term� Manage the business in a manner which
achieves the highest practicable health and safety standards
� Introduce integrated HR Plan : Appraisals, Management Development, Succession Planning
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Health & Safety� HSE system based on OSHAS 18001, ISO 14000 (but
not accedited)� All locations audited annually � Senior managers/directors carry out tours and
demonstrate safety leadership � GB Oils Board has HSE Director looking at Process
safety - as recommended by Process Safety leadership Group following Buncefield explosion
� All depot managers and regional managers attend in house HSE course
� Developing improving safety culture across the business
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The Organisational StructureSam Chambers
Managing Director
Paul VianNorth
Tony StewartScotland
ITAndrew Hewison
TransportDavid Pollock
Paul WilliamsSouth
Jonathan StewartFinance
HRDi Foote
MarketingGareth Williams
Htg Services (E&W)Peter Madden
CommercialBoard
Central Support Functions
Regional Managers
Depot Managers
SuppliesKaren McBride
Stuart SealeyHealth & Safety
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Questions