Companies: RAY   

Malcolm Miller is truly enjoying the first quarter of 2006. In recent year-end results Raymarine’s pre-tax profits leapt 53 per cent to £8.1 million, with turnover hitting £121.9 million. Miller also beat off many admired competitors to win the ‘Chief Executive of the Year’ award at the 2006 Quoted Company Awards.

‘Winning the award was fantastic – it was nice to be recognised for something other than our share price performance!’ he laughs. ‘But I consider it an acknowledgment of the whole team’s achievements.’

It’s certainly been an eventful time for his business, the leading global supplier of marine electronic products to the leisure boating market. In particular, Raymarine has made significant changes to its operating structure. Portsmouth has been the company’s manufacturing base for 30 years, but in July it took the bold move to switch production to Hungary, with the loss of 250 jobs. That transition is underway and should be completed by the end of 2006.

‘It was a huge decision and we considered it very carefully, undergoing 18 months of analysis and consultation with employees,’ says Miller. ‘There’s a human side to these things, but in the end the staff recognised that we had to do what was necessary to stay competitive.

‘I’m a great believer in British creativity – we have some of the best designers in the world – but all our major competitors manufacture overseas, in China for example, and have done so for years. That’s the reality of the marketplace. This move will give greater value to our investors, improve product quality and strengthen the company for the future.’

Powering ahead

Miller confesses he’s obsessed with product innovation, so much so that he can’t stop coming up with new ideas. ‘Sometimes I have to remind myself that I’m chief executive, not product manager! But it’s useful to have product knowledge and it’s important to me that we make continuous improvements to our range, asking ourselves, “What could we be doing better?” No company will survive for long without good products
or services.’

The integrated devices Raymarine designs, manufactures and distributes include autopilot radars, fishfinders, chartplotters and communication instruments for both powerboat and sailing enthusiasts.

‘Twenty-five per cent of our merchandise range each year is new,’ he says proudly, ‘so within a four-year cycle we have an entirely new portfolio.’

Miller took over as chief executive in 2003, after a management buyout backed by HG Capital in 2001.

He was asked by HGC to join the company because of his long track record in consumer electronics, working on product development and manufacturing at Amstrad, SEGA and Pace Micro Technology. ‘But I haven’t always been in electronics,’ he admits. ‘In truth, I started out working with frozen cakes and desserts!’

As a graduate trainee, he joined Unilever and became product manager at Birds Eye. ‘I had nothing to do with frozen peas though,’ he jokes.

According to Miller, there are some interesting differences between the two areas in which he’s worked. ‘In my experience, food purchasers are creatures of habit and stick to what they like, whereas in electronics, customers will come along with you and embrace new technology if you get the marketing and product right.’

Riding the wave

It would appear Raymarine has got that combination pegged, if its continuing sales growth is anything to go by. Indeed, Miller believes the company’s brand and product range is its winning formula. It also helps that he views his industry from a business perspective, not as a boat enthusiast. You see, somewhat surprisingly, he says he prefers frozen water to the open waves. ‘I try to go skiing twice a year, with my wife and two children. In a funny way it’s quite relaxing and it certainly clears your mind. When you’re charging down a mountain at high speed it’s hard to think about anything except getting to the bottom in one piece!’

Raymarine	LSE	£14.85m	18.25p	1.25p
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Other company articles:
Raymarine buys French distributor			02/04/2007
In The Hot Seat, by Sally Giles			13/03/2006
Raymarine sees new product growth			15/08/2005