One year after its management buy-out, Glasgow-based haulier Bullet Express is on a growth drive with plans to acquire other companies and expand into new markets, writes Carol Millett.
Group chief executive John McKail led the PE-backed buyout of the business in October 2023, four years after becoming MD.
The multi-million pound ‘buy and build’ deal was backed by a group of investors from Panoramic Growth Equity, Maven Capital Partners and Emerald Capital.
Since the buy-out last year, the group has boosted profitability by investing in talent, new customer contracts, technology and operational efficiency measures.
Bullet Express said it is aiming to drive further growth through innovation, more contract-backed sales and a focused M&A strategy.
The company is targeting opportunities across the UK and internationally, leveraging fleet, storage and global logistics services.
To drive the new strategy forward, a new senior leadership team was appointed after last year’s MBO, with a mix of external hires and internal appointments.
“It’s been quite a year – we’ve packed a lot in and made tremendous progress against our plan,” he explained.
“It is a team game and I have one of the best teams in the sector, from warehousing people, drivers and support personnel, through to the new senior management team.
“I am very proud of the progress we’re making and there is so much more to come.
“We’ve focused firmly on a number of priority growth areas and everything is now geared towards making the most of those.”
One month after the management buy-out, Bullet secured an Excise Movement Guarantee (EMG) – a financial security covering excise goods moving within the UK or between the EU and Northern Ireland – driven by customer demand for imports and exports of beers, wines and spirits.
The EMG has opened new international arenas including Chile and Argentina, as well as European markets in Italy, Spain and France.
The business also opened a new bonded warehouse in September to support the full end-to-end logistics requirements for this growing base of clients.
In addition, the combination of international distribution, customs and storage has been extended to order picking and final mile delivery, ensuring that the full end-to-end supply chain requirements are fully catered for.
“This is a great example of organic growth across the range of Bullet services. We historically stored and transported packaging, labels, bottles and cans, and we’re now getting involved in the movement of excise liquids,” he said.
“The wet-bond volumes are accommodated within our existing infrastructure of warehouses and trucks. This is a natural evolution, giving our customers a wider range of services, whilst investing in an exciting new growth enterprise for our business.”
Bullet’s pallet network hub is located in Central Scotland, in Bothwell, processing 250,000 pallets a year, acting as Bullet’s gateway to every post code in Scotland, England, Wales and Ireland.
The company said that despite the various economic challenges faced the sector it has thrived, aided by its strategic partnerships with Pallex and geographically positioned exchange partners.
Another strong area of growth for Bullet is contract distribution which has seen Bullet partnering with major organisations in a variety of sectors including aviation, FMCG, retail, electrical manufacture and construction.
Bullet also operates shared user storage centres, located at Baillieston, Glasgow and Westway Park, Glasgow Airport.
With 34,000 pallets under management, receiving and pick operations are supported by both network and contract fleets, this business is also backed by customer contracts.
John McKail said: “These contracts provide long-term stability for our customers and our people, and represent a great endorsement of the high levels of added-value services and partnerships that key clients are prepared to invest in.”
The company continues to enhance its global network of partners providing worldwide coverage for export and import services. This encompasses all transport modes, including air, ocean, overland and customs. It has also developed specialism in key sectors, managing key projects including sensitive and high-value cargo.
“The global logistics sector is a tough operating environment. Post-Brexit we have experienced serious supply chain disruptions caused by geo-political forces, international conflicts, climate issues and economic turbulence. Despite these challenges, we continue to grow. Personalised service is our differentiator, it is not all about price. Response times are crucial, our customers know their shipments are in the safest hands,” John McKail added.
Bullet has already made significant investments in technology and said it is now on a mission to become more data led. Further investments in technology are well underway, with the upgrade to the industry-leading Vigo Transport Management System (TMS).
The new TMS will support more customer and supplier integrations, streamlining operational and financial processes.
Data analytics allow precise analysis of shipment and vehicle data, including estimated time of arrival (ETA) and optimisation of fuel consumption. Scanning regimes provide real-time tracking and electronic proof of delivery (POD) for customers. The full fleet deploys telematics for route planning and vehicle efficiency.
He explained: “The first year since the investment has been about positioning the business for the next levels of growth. We are a contract-backed business, partnering with some of the most recognisable brands, forging long-term, sustainable relationships.
“We have a plan for M&A with some targeted developments. The expertise and support from our private equity Board colleagues is proving to be of real value.
“I feel incredibly privileged to be in a position to lead the charge to take Bullet Express to the next level – we are building something quite special, with a very engaged team. It’s very much onwards and upwards,” he concluded.
