Three years after selling Just Car Clinics to Nationwide in 2015 and ‘retiring’ Barry Whittles together with John Pattinson formed a new
bodyshop company called React Accident Repair Group. Their first
bodyshop opened in Hull in 2018 and in October this year they opened a second site in
Scunthorpe. ABP spoke to them in an exclusive interview to find out more.
It was a phone call from John Pattinson two years ago that brought Barry Whittles (Industry Knight 2013) out of retirement, having sold Just Car Clinics to Nationwide in 2015. Barry had worked with John for over 20 years, firstly at Dixons Car Clinic and then at Just Car Clinics. “John’s dedication, loyalty and desire to succeed has always been unwavering, so when he called me with a proposition to own and run his own business it was a no brainer to back and support him along with fellow director and Investor Chris Elton,” said Barry Whittles, React Accident Repair Group.
React’s first acquisition to launch the group was the Paint & Body Shop in Hull which they bought in 2018. While the
bodyshop had a good reputation, unfortunately, it was struggling to make a satisfactory return. However, within six months of trading under
React’s new management, it was breaking even and returned a profit in year one. “As well as refurbishing the site, upgrading equipment and investing in training, the main difference we made to turn it into a profitable business was a cultural change,” said Barry. “Everyone has a role of responsibility, knows what they have to achieve, what they have contributed and is rewarded accordingly. We have managed to build a team that understands our ethos and is enthused to be part of the new company. We pay people salaries and reward them for the job they do rather than pay wages based on individual bonus. We have probably learned from the mistakes of the past. We have a yearly bonus which is shared amongst the team based on team effort.”
React has invested in vehicle manufacturer approvals – BMW, Volkswagen Group, Ford and Vauxhall - and the work mix has changed from 80% accident management to 70% insurer, 10% accident management and 20% retail.
When the first national lockdown happened, the directors and management decided to keep the business open with 40% of the team working normal hours. By May 60% of the furloughed staff were back at work and by August everyone had returned.
“When this tragedy
happened we stayed open for our clients knowing it would be a difficult period for everyone,” said Barry. “If
anything it has strengthened our customer relationships and we have since won another major client contract.”
Before the pandemic React had been searching for a second site and found one in
Scunthorpe that had the right square footage with ample parking space but when lockdown happened in
March they decided to delay plans. “By the middle of
June I said we are missing a trick here, all the insurers are coming to us, so we signed the lease in the middle of the pandemic,” said Barry. “We planned the refurbishment through LKQ who have been great in supporting us and we quickly had STL
spraybooths and everything agreed and fitted. It took just five weeks from picking up the keys to being operational.”
John Pattinson, Managing Director, React Accident Repair Group, added, “There were no delays in getting equipment or contractors. LKQ managed the whole
process and I would like to thank Jim Sullivan and his team at LKQ for managing the project so smoothly.”
There are 10 staff members at
Scunthorpe and 24 in Hull. “Finding skilled staff hasn’t been a problem,” said John. “We haven’t needed to use a recruitment company. We advertised on social media when we announced we were buying the
Scunthorpe site and people came knocking. I have three or four other people waiting to join. I will see how the year goes and then look at it next year.”
The stunning new site in
Scunthorpe opened in October. “After a successful two-year trading period from our premises in Hull, we are proud to have established a trusted reputation for service delivery,” said John Pattinson. “Notably, we have maintained our operations throughout the Coronavirus crisis, providing vital services for key workers, cementing our credibility locally and throughout the region. As a result, our commercial partnerships with insurance industry partners have strengthened still further - a key driver behind this expansion for the React Group. “The support of our incredible team has meant that we are experiencing higher levels of demand for our services than ever before, so we’re delighted to open the doors to our new workshop in
Scunthorpe. Our team of contractors worked hard on this project to renovate the building and get us up and running on a tight schedule to our high standards.”
The two sites have kept their original names rather than being rebranded under the React banner. “The reason we kept the name of the Body & Paint Shop in Hull was because of its good reputation and we didn’t want to lose that trade,” said Barry. “However, we do intend to eventually rebrand all sites as React Accident Repair Centre Hull,
Scunthorpe,
etc, but we are in no hurry to do so.”
The directors have a shared vision and growth plan to expand operations across the regions of Yorkshire and Lincolnshire. “We have always remained faithful to an independent, family-owned ethos where the customer truly is our number one priority,” said John. “We are passionately invested in our regional economy, so this is a logical next step for us as a group and as a team of employers who are committed to nurturing talent in this region.”
The team in
Scunthorpe has been trained in Hull so that systems and processes are replicated and there will be consistency across the group. Despite having a background of operating a large
bodyshop group,
React is not looking to grow further unless the
work flows are there. “We are not going to open sites to say we have three or four, we will only open sites where we have work,” said Barry. “If in five
years time we are sat here with only two sites, as long as they are both making good
profit and everyone enjoys working here that is fine. JCC used to be the second largest group in the country, but I think people are going back to smaller, more manageable size businesses where you know every staff member. Nobody has really nailed having a national business.
“You could say JCC was a good business but in
reality at best it only made a 3% profit margin,” added Barry. “I envisage us being a regional group of five sites maximum. When you get bigger you need area managers, secretaries for area managers, general managers, you need systems and analysis and a full-time IT guy and
all of a
sudden your cost base grows massively and for us we both agree that we don’t want to build that. Our focus is on delivering an excellent local service delivered by a dedicated local team.”
The group is being developed with the benefit of hindsight. “We have seen it and done it, we know what works and what doesn’t, and I think our USP is our experience and how we interact with people,” said Barry. “There is still a massive gap out there in
bodyshops not investing in people.
“We are a small player in a big marketplace but my view is to focus on building the right foundations now so the business can grow and flourish going forward.”
