This Is Guernsey

By Tom Edwards

RECESSION is not all doom and gloom, according to a construction materials giant who lives in Guernsey.

Peter Tom (pictured), the founder of Aggregate Industries and chairman of Leicester Tigers, has made his return to the stock market with a new vehicle. His plan is to make acquisitions in the building materials industry backed by investment group Marwyn.

Critics have baulked at the St Martin’s resident’s timing when the construction industry is bowing under pressure from the credit crunch. But Mr Tom, 67, insisted that in the current economic downturn, there were still some exciting acquisition opportunities.

‘We’re currently on the second round of bidding for some assets that one of the majors is selling off in the UK as we think the industry there is pretty consolidated,’ he said.

‘We’re also looking at the Czech Republic and Poland as well as the US and believe we can make a success of it if we find the right assets. Even if this recession is a particularly bad one, I have the benefit of having been  through a few before.’

Coming from a private company background, he looks for businesses that have a steady cash flow, he said.

‘We’re taking our time and we’re not going to race off spending money for the sake of it.

‘We’ve raised a bit of money, so we’ve got backing to do some big deals if the right ones come up and I’m sure that in the next few months there will be some interesting ones, so watch this space.’

Specialist institutional securities firm Cenkos has involved local investors in two of Mr Tom’s companies.

‘We have raised money for Leicester Tigers in their quest for ground and facility improvements at Welford Road and to broaden their shareholder base,’ said Cenkos CI associate director David Chan.

‘Subsequently, Peter offered us the opportunity to participate in the funding of Marwyn Materials.

‘We’re excited about the prospects for this venture, in particular given the state of the market and the opportunities for consolidation.

‘As he’s one of the UK’s most experienced executives in this sector, we jumped at the chance to be involved.’

Cenkos CI has also secured Mr Tom’s services on the board of its new venture, Bailiwick Investments, said Mr Chan.

‘We look forward to working with him in a more corporate capacity to create investor opportunities in the Channel Islands with our chairman Tom Scott – a long time friend of Peter’s – and other prominent local business leaders.’

The veteran businessman’s decision to take on the executive chairmanship of Marwyn Materials should not come as a surprise, he said.

‘I always told everyone that I would start again. Myself and Marwyn chief executive Simon Vivian, who is ex-Mowlem and Hanson, and the finance director Ian Peter, who is also ex-Hanson, are going to buy and build – it’s as simple as that.

‘I love business and I enjoy dealing with people so I just don’t know the answer when people ask me when I’m going to quit.’

Article posted on 7th July, 2008 - 2.30pm