EDITOR'S BLOG
LESSONS MUST BE LEARNED AFTER DEMISE OF F.R JONES
Was volume regarded over profit?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

There must now be significant questions raised over how one of the highest profile outdoor powered machinery dealerships in the UK was controlled, which led to it failing so spectacularly, mid-season.

 


Firstly, apologies for being a tad late with the news.

 

I must confess we did not know of the demise of F.R Jones before last Friday's Weekly Update had been sent. We hadn't heard anything and no one had brought it to our attention at that stage. So I am sorry if some of you were expecting to see coverage in last week's edition.

 

I first heard through an email I was sent by a dealer, who I don't know personally, about half an hour after we published. I'll reproduce some of the email here, but will keep the sender anonymous. They wrote to me:

 

"How come Service dealer are not reporting on the most hated Stihl dealer (Other than Stihl themselves) on the 1.6 million that FR Jones took Stihl for last week?
 
"Ive been itching to read all the comments on these absolute tossers of the industry finally getting their comeuppance."

 

The email continued by accusing us of being in the pockets of STIHL for not reporting.

 

Now I fully understand that feelings surrounding F.R Jones are always running high in the dealer community. It feels like an understatement to point out that they were contentious figures.

 

However, when I hear of any company going out of business, regardless of how much one may have serious and justifiable issues with those in charge, my first thoughts are always with the workers who have lost their jobs (especially at this time). Before we start pointing fingers and going 'ha-ha', that's around 40 families I believe, who have lost an income.

 

Also, the other blameless parties are the company's customers who will have lost out. Both F.R Jones' Facebook page and their Trustpilot entry, have many examples of members of the public complaining that they spent (in some cases quite considerable amounts of) money with them in the weeks, days, hours (?!) before they went bust - and clearly haven't seen anything in return. 

 

There are accounts of people as well, who had their own machinery in with F.R Jones for a service, who are obviously keen to see it returned as soon as possible. Not just homeowners either, professionals who will need that equipment to run businesses and fulfil contracts.

 

So call me a woolly liberal, but I do think that before we all start piling on and gloating that the company has ceased trading, we all should be mindful that people who have had zero say in the running of this company, but who worked for them or used them, will have been adversely affected by their demise.

 

Questions to be answered

 

That all said, there must now be significant question marks raised over how one of the highest profile outdoor powered machinery dealerships in the UK was controlled, which led to it failing so spectacularly, mid-season. Lessons must be learned for this not to happen to another business.

 

I have spoken to some leading dealers this week, who will know far more about the situation than I do, who highlighted some important issues that need to be considered.

 

Principally what I'm being told, is it's a question of margin. The business model seemed to be based on volume, not profit. Which as any business person will attest to, is simply unsustainable in the long term.

 

People I spoke to this week believed that when the company was flush with product, they were most likely selling record breaking numbers. But when it came down to profit in percentage terms, it seemed they operated in single figures. Which, as it was put to me, "is a suicidal game."

 

The wider industry problem that this 'pile it high, sell it cheap online' model creates of course, is a false sense of value of what this machinery is actually worth in the minds of customers.

 

I've heard accounts many times before, and it was repeated to me this week, of dealers experiencing customers coming into their stores with highly unrealistic cost expectations - based on what they had seen on F.R Jones' website. Being asked to price match on something which appeared to have rock-bottom (if any) margin, makes no business sense to any carefully managed dealership.

 

I've had opinions expressed to me that this event might need to be a wake-up call for manufacturers. Discussions may be required regarding how every dealer operates their business. Selling great volume, extremely cheaply, can't be doing either side any favours. It devalues what should be seen as a quality, high-end purchase.

 

Also I was told that manufacturers might need to rethink their policies on inventory. Rather than pushing product on to dealerships, stock levels should be led by dealers themselves. Stock being dumped on to dealers isn't helpful I was told. It needs to be the dealers who do the pulling. Having these pressures of shifting great mountains of stock, could have been another factor that led to the downfall.

 

Another short-term affect of the closure that was mentioned as a concern, was the potential for problems to be faced by suppliers and competitors through 'stock dumping' by the receiver. Unless the suppliers retention of title clauses are rock solid I was told, this flooding of the market with cheap product that needs moving, could prove to be an issue.

 

Overall I get the impression that all quality dealers understand and accept that online retail is a way of life. However, what seems clear is it does not help anyone if those sites are giveaway, bargain-bucket outlets. They should act to draw customers into a business where, once there, they receive premium customer service, for a premium product at a premium price. This surely is the model that benefits dealers and suppliers alike?

 

As a dealer said to me this week, "The specialist dealer will always win on profit and on customer retention - which is key to any business."

NEWS
F.R JONES IN ADMINISTRATION
Well known dealer ceases trading
 
F.R Jones. Pic from F.R Jones Twitter

In this week's WEB ONLY story, with F.R Jones one of the most well known names in the UK dealer sector ceasing trading and entering administration, Service Dealer hears from STIHL.

 


REMEMBERING PETER ELLIOTT
Pioneering days in the 1990s
by Chris Biddle, Service Dealer founder
 
Peter Elliott in his mower days

Peter Elliott, one of the most colourful characters from the garden machinery industry in the 1980/90s, died on 26 June 2023.

 


Peter Elliott, one of the most colourful characters from the garden machinery industry in the 1980/90s, died on 26 June 2023.

 

Peter Elliott in his mower days


In the Spring of 1989, a price war raged amongst the leading DIY superstores in response to a looming recession. Lawnmowers spearheaded multi million-pound promotional campaigns, TV commercials and full page national advertising (these were pre-internet days). Together with longer opening hours, 7-day trading and ample car parking, the ‘sheds’ provided a huge challenge to independent dealers. 


Derek Belcher of Handy Garden Machinery, Swindon said, “I’m frightened, we have a warehouse of machines but if we try and match their prices we’ll go out of business. I’ve worked out I could buy my stock from B&Q cheaper than from some of my suppliers.”


The discounting fever came at a time when consumer spending was under pressure from tight monetary controls and high mortgage rates (sound familiar?).


BAGMA meetings were dominated by views on how the specialists could respond. These ranged from withdrawing warranty and service facilities offered to the mass merchandisers to boycotting suppliers to the ‘sheds’.


Step forward, Peter Elliott.


Peter first engaged with the industry when he started buying and selling old mowers from his parents home. As someone who was never afraid to break the mould or ruffle a few feathers, Peter subsequently established a dealership, P & E Garden Machinery.


Mower City


When the price-cutting began, he drew up plans to create a buying group for specialist dealers which would not only improve terms, but which would also raise funds for a national advertising campaign.


Thus, at the 1989 IOG SALTEX show, he launched a new buying group Mower City with a target of attracting 70-80 dealers who would pay £1000 initially, all of which would go into a national advertising ‘pot’. The aim was to raise a budget of £100,000 for a campaign to run during the Spring of 1990, with funds supplemented by contributions from manufacturers. At the time of the launch, Mountfield, Hayter, Victa UK, Tecnamotor (Tecumseh) and Ariens had confirmed their support with Hayter announcing that they were withdrawing the supply of mowers to B&Q the following year.


Peter was regarded by many in the mainstream garden machinery business as a bit of a maverick. Under pressure from members, dealer trade association, BAGMA, was not impressed with the concept. Former BAGMA President Gerry Cohen, who ran near-neighbour Power Gardening of Slough, was a particularly fierce critic of Peter.


However, the trade was stunned when in the Spring of 1990, Peter Elliott announced that Gerry, now retired, would be joining Mower City as Director and General Manager! 


When the national advertising began, Mower City had only recruited 38 dealers which Peter described as “. . a satisfactory start for the first year with dealers entering unknown territory”. 


To bolster membership, Mower City took a stand at the 1990 GMA Show held at Kempton Park, the year when the turf machinery industry decided to breakaway from the IOG SALTEX show which had moved from Windsor to Peterborough. The two shows clashed – and the GMA Show proved to be a one-off event.


Lost backing


Shortly after the GMA Show, Peter was informed that Mountfield and Hayter were withdrawing their support. It was a massive blow, a decision almost certainly taken in response to pressure from their existing dealer/distributor network. One of these, Henton & Chattell, had themselves announced the formation of a new dealer group, The Cutting Edge. MD John Chaloner said, “We are a selling group, not a buying group. We aim to underpin the strength of the specialist though the promotion of buying from the experts.”


It proved to be the beginning of the end for Mower City. Peter  had booked a stand at the GLEE show that year, which he cancelled. The stand was subsequently taken over by Victa who were still ‘on-board’ with Mower City.


By November 1990, financial pressures were building up - from manufacturers owed for machines and other creditors. At a meeting held on 28 November, the manufacturers involved agreed a six week voluntary arrangement to allow Peter to complete his search for ‘additional financial strength’ 
However, all came to nought, and Mower City was formally disbanded and wound up. As was his P&E Garden Machinery dealership which later re-emerged as Meadowbrook Lawn and Garden. 


There followed a number of initiatives to set up buying groups, selling groups, own-brands, franchises but none have stood the test of time.

 

Peter recently


Peter Elliott was a pioneer, an original. Whilst ‘talk-talk’ was prevalent amongst specialist dealers on how to combat their potential nemesis, the sheds, Peter was a ‘do-er’. He took risks, he was engaging and had loads of ideas to promote the specialists.


The problem was he lacked the financial strength needed for long-term success. ‘Politics’ also played a part - as did the timing. There were a host of mergers and acquisitions within the industry at the time which particularly impacted Mountfield and Hayter as both their futures were in doubt.


I am grateful to his wife Elaine and brother-in-law Trevor Thorp, now with Kersten UK, for providing me with additional information. 


The funeral will be held at Amersham Crematorium on Wednesday 26 July at 1.45pm, and all who knew Pete will be very welcome. 


Chris Biddle is the founder of Service Dealer magazine. 

NEWS
YAMAHA RETURN AS A GOLD SPONSOR
Of Service Dealer Conference & Awards
 
Service Dealer Conference & Awards takes place 30th November 2023

Service Dealer are pleased to announce that Yamaha will be returning to our event for the dealer network this November.

 


Service Dealer are delighted to announce that Yamaha will be returning to our Conference & Awards, as a Gold Sponsor.

 

This year's theme has been announced as Taking Care Of Business and a new venue, the Crowne Plaza at Stratford-Upon-Avon will take on hosting duties - with the date to mark up in your diaries being 30th November 2023

 

 

Service Dealer owner Duncan Murray-Clarke  said, "We are really pleased that once again Yamaha will be joining us in supporting the independent dealer network. We have such a fantastic day planned for our attendees and will have much more to share with everyone over the coming weeks."

 

Matt Taylerson, divisional manager, marketing at Yamaha added, "We are thrilled to be supporting the Service Dealer Awards for a second year.

 

"Yamaha continue to support our dealer network, including those attending the Awards this year. Congratulations to all those who win."

 

Look out for further announcements, including this year's keynote address and confirmation of seminar and breakout sessions, soon.

 

 

GGM EXPANDS INTO AG SECTOR
Extends portfolio
 
Chris, Hilary and Thomas Gibson of GGM

Managing director, Chris Gibson, says dealership is in the process of increasing their sales, service and engineering teams to support new and existing customers.

 


Kubota (UK) Ltd has announced that GGM is to widen its Kubota portfolio as it expands into the agricultural sector with higher horsepower M-series tractors and R0 loaders, to sit alongside its existing groundcare business.

 

Chris, Hilary and Thomas Gibson of GGM 

 

The extended product range is described by the manufacturer as a logical step for the dealership, as it looks to broaden its customer base with a full range of Kubota tractors suited to the agricultural sector. The additional models will include M6001 Utility, M6002 and M7003 models spanning 104-175hp, plus corresponding LK tractor-loader models and R0 pivot steer loaders.

 

“GGM’s expansion into agriculture continues to reinforce Kubota’s commitment to its customers and the markets,” explained Henry Bredin, general manager of Kubota (UK)’s Tractor Business Unit. “GGM already has considerable M-series tractor experience, having delivered on sales, service and support with smaller M4003 and M5002 models to a broad spectrum of customers and industries.”

 

GGM has a long-standing business relationship with Kubota which spans more than 45 years. Based in Colne, Lancashire, with a second depot at Haydock, Merseyside, GGM will be accessible to agricultural customers throughout Merseyside, parts of Lancashire and West Yorkshire.

 

Managing director Chris Gibson said, “This is an exciting new chapter for our business. Many of our staff already have experience and knowledge of the smaller M-series tractors, and we’re in the process of increasing our sales, service and engineering teams to support new and existing customers with Kubota’s higher horsepower tractors and implements, as we extend into the agricultural sector.”

 

Chris continued, “We already have a strong and competent team that is capable of delivering first class customer service and support, with professional groundcare machinery. And we’re confident of replicating that same level of support across the farming sector.”

SERVICE DEALER'S MARTIN RICKATSON HONOURED
By the British Guild of Agricultural Journalists
 
Martin Rickatson's new book

Martin Rickatson, Service Dealer’s freelance agriculture editor, has had double cause for celebration in recent weeks - winning a prize in this year’s Power on the Farm awards and the publication of his new book.

 


Martin Rickatson, Service Dealer’s freelance agriculture editor, has had double cause for celebration in recent weeks, marking the publication of his book on the history of Home Counties dealership AT Oliver and Sons Ltd and winning the runner-up prize in this year’s Power on the Farm award, organised by the British Guild of Agricultural Journalists and sponsored by engine business Perkins.  

 

Martin Rickatson's new book


Martin, whose farming family has used Olivers’ headquarters depot on the Herts/Beds border near Luton for many years, was commissioned last year by the Oliver family to compose a book on the history of the business, in preparation for the firm’s 200th anniversary celebrations this year. ‘Backing Land-Based Businesses: Two Centuries Of AT Oliver & Sons’ was published last month in time for a bicentennial celebration event held by the company at the Hertfordshire Showground near St Albans, where customers and employees were treated to a display of products from some of the dealership’s franchises through the ages, and senior management from suppliers including Claas and JCB were in attendance. A report on the event will be published in the next issue of Service Dealer.

 

Oliver's open day


Meanwhile, Martin has also been celebrating taking the runner-up prize in this year’s Perkins Power Award, organised by the British Guild of Agricultural Journalists, for a feature published last year in Farmers Guardian on the first self-propelled grape harvester to be sold new into the UK, retailed by Essex-headquartered New Holland dealer Ernest Doe and Sons.

 

The reward was a cash prize and a trip to the first day of Wimbledon 2023, and Martin says he is now looking for a good Service Dealer feature topic that could help him take the top prize next year…   

MAJOR MANUFACTURER SEEKS TO RECRUIT EX-FORCES
Launches new scheme
 
Major manufacturer are looking to recruit ex-forces

Members of the armed forces have been identified by the manufacturer as ideal candidates to bring their unique skill sets and experience to technician roles within UK and Ireland dealerships.

 


John Deere has launched a resettlement programme for military service personnel, offering new career opportunities working on their agricultural and professional groundscare machinery.  

 

 

Members of the armed forces have been identified by the manufacturer as ideal candidates to bring their unique skill sets and experience to technician roles within UK and Ireland dealerships.

 

The manufacturer says that responding to a global shortage of qualified technicians in the machinery sector, their Military Hiring Programme will follow in the footsteps of a successful scheme launched in the United States which attracts more than 1,000 potential new recruits a year.  

 

“We are passionate about finding a way to give back to those who have served our country,” says Allan Cochran, John Deere branch training manager.

 

“The armed forces produces people who are highly skilled, motivated and extremely competent, and many already have the engineering skills needed to become qualified technicians.  

 

“It’s the perfect fit for John Deere - we are able to play our part in supporting those resettling following careers in the armed forces while also attracting a different pool of people into the business.”

 

Signaling its commitment, John Deere has this week signed the Armed Forces Covenant; a pledge to ensure that those who serve, or have served, in the armed forces, and their families, are treated fairly. 

 

Military personnel have been identified as a key source of talent for the machinery sector as many have already worked with some of the systems and products John Deere uses, making the transition straightforward.

 

“Those who have served are experts at working under pressure and logically solving problems in order to keep a machine operational,” Allan says. “These are the skills John Deere dealerships need to keep the wheels turning.”

 

Deere says those signing up to the programme will be offered free technical training to help them apply their current skills to the company's products and services. There are more than 70 courses on offer. 

 

“Everyone who signs up will be assigned to an employee from the John Deere network who has served in the armed forces who will be there to support each individual during the resettlement process,” Allan says.

 

Interested service members and ex-service members can learn more and fill out a contact card by visiting here

 

After making contact, they will be put in touch with an individual from the John Deere network who has resettled following a career in the armed forces to discuss all potential options. 

TRACTOR SALES UP IN JUNE
Compared to a year ago
 
Tractor sales were up in June

According to figures released by the AEA, sales of agricultural tractors were up but dipped below the five-year average.

 


According to figures released by the AEA, the number of agricultural tractors registered in the UK in June was up by more than 20%, compared with the same month last year, at 1128 machines.

 

However, Stephen Howarth, agricultural economist at the Association said, "The monthly total did slip slightly below the five-year average for June, for the first time since February. Nevertheless, the total number of tractors registered in the first half of 2023 was up by 6%, compared with January to June 2022 and by 7% against the average for the same period in 2017-21.

 

"That represents over 350 more machines recorded so far this year, as the industry continues to reduce the backlog of orders which built up during 2021 and 2022 as a result of supply chain disruptions."

 

STIGA ANNOUNCE RECORD PERFORMANCE
Sales higher than ever in 2022
 
STIGA have reported record results for 2022

Manufacturer says record sales are a result of continuously increased performance in all markets.

 


The STIGA Group has announced that they experienced another year of record revenues in 2022 with sales of 637 million Euros (+11% versus 2021) and an EBITDA of 63.9 million Euros (+4% versus 2021).

 

 

In a statement the manufacturer said these results are "remarkable" considering a complex 2022 marketplace. The company cited challenges last year such as an economic downturn, global inflation, supply chain disruptions and geopolitical uncertainty. "Nonetheless," the statement said, "the Group’s solid strategy and nimble approach to business enabled continued successes and investments to further elevate its positioning in the market, which currently counts with a 9.8% market share in Europe (+9% versus 2021)."

 

Sean Robinson, CEO STIGA Group, said, “Our 2022 financial performance is a remarkable testament to our people and the Group’s collective efforts to bring to market innovative, sustainable solutions.” He added, “In 2022, we invested 13.1 million Euros in research and development, focusing on technology introductions and competitive improvements that create quality products able to enrich the everyday lives of our end users”.

 

The company says their record sales are a result of continuously increased performance in all markets and distribution channels in which it operates, particularly driven by the French, German and export markets.

Sponsored Product Announcements
KRESS COMMERCIAL: ENGINERED AND DESIGNED FOR PROFESSIONAL LANDSCAPERS
Welcome to the post-petrol era
 
Kress Commercial

A game-changer in every way, Kress is leading the charge with a breakthrough innovation in battery-powered technology, built to deliver the performance and power of petrol.

 


A game-changer in every way, Kress is leading the charge with a breakthrough innovation in battery-powered technology, built to deliver the performance and power of petrol.

 


For decades, petrol-powered gardening and landscape equipment has been a reliable choice for commercial use, due to most battery-powered equipment being incapable of matching or surpassing the benefits of their petrol counterparts. This is coupled with the fact that innovation in battery technology has remained slow in meeting the dynamic and ever-growing demands of professional gardeners. 

 

 

Tackling the current limitations of battery head-on, with a ground-breaking opportunity, Kress is taking the transformation from petrol to battery to the next level, creating a stronger, faster, quieter, more affordable option, that is specifically designed to meet the demanding needs of commercial landscapers and is set to drive battery-power technology forward to a brighter, more efficient future.


The new commercial Kress 8-minute Cybersystem™ battery platform has been engineered to have the fastest re-charge of any commercial battery system available, has twice the power output of standard lithium-ion batteries and has been developed with heavy-duty use in mind. It is battery-power as we have never seen it before.

 

 

The Cybersystem™ battery platform was engineered and designed specifically to meet the demanding needs of commercial landscapers. The system features both 4Ah and 11Ah battery packs with the ability to recharge each 60v battery pack to 100% charge in only 8 minutes, or 80% charge in 5 minutes - the fastest re-charge of any commercial battery system available. 


The Kress 8-minute™ Cybersystem™ is the first and only cordless battery power supply that will allow commercial landscapers to finally replace their expensive petrol equipment without sacrificing performance, power or runtime. This battery platform will power a full line of Kress professional outdoor equipment that includes commercial-grade backpack and handheld blowers, grass trimmers, edgers, chainsaws, and hedge trimmers as well as heavy-duty walk-behind mowers. 

 

 

Each Kress commercial-grade tool is designed and engineered for heavy-duty use with a high-efficiency brushless motor and state-of-the-art features and performance. There are no more excuses to keep operating noisy, high-cost petrol equipment or wasting time with cordless battery tools that won’t get the job done.


Visit https://www.kress.com/en-gb/business-solution-for-landscapers/ for more information.

7-HOURS MOWING
With The Mean Green 52” & 60” RIVAL
 
Mean Green RIVAL

The RIVAL commercial electric mower offers up to 7 hours of continuous mowing time, the choice of a 52″ or 60″ deck, speeds up to 11.5 mph, and horsepower comparable to a 36 HP petrol or diesel mower.

 


The RIVAL commercial electric mower offers up to 7 hours of continuous mowing time, the choice of a 52″ or 60″ deck, speeds up to 11.5 mph, and horsepower comparable to a 36 HP petrol or diesel mower.  

 

 

These Evolution Series ZTRs are stable on slopes up to 20 degrees due to our patented, ultra-low, centralized centre of gravity and engineered battery configuration located only 20cm above the ground. 

 

The custom, comfort high-back suspension seat with adjustable padded arm rests is designed for maximum operator comfort. The front Tweels are designed to achieve excellent cutting results and outstanding rider comfort while eliminating downtime caused by flat tyres and unseated beads.

 

Designed with maximum power in mind, Mean Green has combined time proven planetary gearing and the latest electric hub motor technology.  The result is the impressive, leading edge, Impulse Drive System (IDS)™ that generates unrivalled power and weight carrying capacity and with forward ground speeds from 0 – 11.5 mph.

 

The SmartDeck™ rapid height deck lift system (patent pending) can be operated with the push of a button or foot pedal.  When approaching kerbs or obstacles, a simple touch of the electronic foot pedal will completely elevate the deck within 2.8 seconds!

 

The Interactive Touch Screen Display, with pass code and administrator mode, is function-tested in all environments to ensure long term reliability.  Displays full functionality including battery consumption, state of charge, deck lift system, blade speed control, and drive speed settings. The Blade Performance Monitor displays speed and performance of each blade to help the operator maintain optimal mowing efficiency and quality of cut.

 

Additional standard equipment includes rear discharge deck with dual support anti-scalp wheel mounts, ROPS (Rollover Protection Structure), cup holder and charger.

 

The options available for the RIVAL mowers are ORV-Blast blower package, road light kit, LED amber flashing beacon, LED light kit, front lift jack, 12V USB port and front suspension yokes.

 

For more information or demonstration contact Overton (UK) on: 01522 690011

 

*Depending on terrain, operator performance and grass conditions.  

Servicing Dealer Industry First, Profit Second
Gardentrader continues to reinvest all revenues

 

That’s the philosophy of Garden Trader and we have maintained our affordable annual subscription at £96 for the whole year.  This equates to 26p per day and an average of just 83p for every potential customer the site delivers to dealers. Garden Trader has 160 skilled dealers subscribed up and down the UK and they are all benefiting from the 1m+ dealer search impressions the site generates each year.  People want to buy from people and this highly targeted website is delivering quality leads to subscribed dealers for just 26p per day. 


Our 2020 Summer research showed that on average, each Garden Trader dealer will be sent 114 new customers (or people with a buying intention walking through your door) per year.  This works out at 83p for each new customer. A subscription rate designed to be all inclusive delivering unrivalled online results.  

 

This site was purpose-built just for skilled servicing ground care dealers by the team that bring you Service Dealer Magazine. It is easy and quick to register and costs just £96 + VAT per year for a full listing.  As this dealer site is designed to promote the UK dealer network, all revenues in 2022 will continue to be reinvested into promoting the site online and so supporting the dealer network.

 

Join the country’s only independent specialist website, created by the team that bring you Service Dealer. Join our subscribed Garden Trader dealers now by clicking on “Register Dealership” and let's fight back against the zero value retailers.

 

Map of dealerships registered with Garden Trader

 

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Advertise your recruitment needs on Serivce Dealer Weekly Update and reach our targeted audience of recipients every week.

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