Donwood (Double Glazing) Limited has implemented a number of major initiatives designed to see the company’s amazing success story continue long into the future.
Established twenty years ago by Ged and Norma Donnelly, Donwood is a Gateshead-based manufacturer of a wide range of glass products, including insulation glass, tempered safety glass, decorative glass and processed glass.
In recent years the company has achieved significant growth, from turnover of £1.3 million in 2001, to forecast turnover of £3.7 million in its current financial year. The basis of this growth was investment in state-of-the-art equipment, quality of product, and commitment to the very best customer service.
The first initiative undertaken saw the company recently complete work on an extension at its facility at the Stonehills Complex in Pelaw. This provides warehouse space and will enable the company to hold a significant amount of finished goods stock. Prior to building the extension, the company was having to turn down orders, because it did not have the room to hold goods in stock.
The company took a second significant step by the introduction of a new, innovative glass cleaning product. This is a cleaning solution which, when applied to glass, prevents dirt from sticking to it, meaning that windows stay cleaner for much longer. This product has recently been launched to very positive customer reviews.
Finally, the culmination of months of succession planning has now seen Ged and Norma Donnelly sell their shareholding in Donwood to sons Andrew and Darren. Yorkshire Bank, advised by lawyers Ward Hadaway, provided funding for the deal.
However, Ged and Norma have no intention of retiring, and will remain as directors, Ged taking the post of Executive Chairman.
Ged Donnelly said: “Norma and I are taking a step back from the day-to-day running of the business. Our future roles will involve higher level input, mine on the sales side, and Norma’s on accounts and administration. Andrew and Darren have been effectively running the business for the last couple of years anyway, so this is the natural next step. For our customers, it is very much business as usual.”
The deal was put together with the help of corporate finance advisers RHK. Tony Edwards, Corporate Finance Partner at RHK, commented: “Donwood has enjoyed fantastic success in recent years, but like all good entrepreneurs, the Donnellys are constantly looking at ways of keeping the momentum going. The operational initiatives undertaken, coupled with the boardroom restructuring, will keep the business vibrant and ensure a healthy future for the company. RHK have acted on behalf of Donwood Double Glazing for a number of years and look forward to continuing the relationship with Andrew and Darren.”
Watson Burton provided legal advice to Andrew and Darren Donnelly. Mulcahy Smith provided legal advice to Ged and Norma Donnelly.
Click here to take a look at our Corporate Finance deal summary.
RHK are registered by the Institute of Chartered Accountants in England and Wales to carry out company audit work. RHK Corporate Finance LLP is registered in England and Wales as a Limited Liaibility Partnership (Registered No. OC308294)
