Labelnet in UK prepares for next growth phase

Founded in 1999 with one Nilpeter press, no customers and no supply chain, Labelnet was built into a thriving company by the sheer enthusiasm of founders Neil Southgate and Shirley Bizzel.

But three years ago years ago, Labelnet, like so many similarly sized label converters, became ‘stuck’ at a 2m GBP (3m USD) turnover despite a growing customer base.

‘We were in a situation last June before the FL-3 arrived where we were literally at bursting point, and running 24 hours a day to meet customer deliveries,’ recalls Southgate. ‘We had a record 30 percent growth that month but it was not sustainable.’

Southgate decided that, in order to move to the next level of growth, he had to step away from day to day management and put a new team in place. ‘I wanted to build a sustainable business that did not rely on me.’

Southgate developed and stuck rigorously to a three-part plan: new management infrastructure; new sales and production managers; and a new press.

First, a Cerm MIS was installed. Then a year ago Simon Ewles was employed as Labelnet’s first sales manager. ‘Simon spent his first few months with our existing customers, managing their expectations and making sure they were talked to, rather than getting new business. And this was a real feather in his cap.’

Southgate was anxious to find managers from outside the labels industry who would bring new ideas and drive. ‘We were looking for people in related fields with a transferrable skill set,’ says Southgate.