20/04/2012 - Permalink

A bright future for local supplies business

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Shropshire Council, along with three other councils in the region, has today confirmed the sale of West Mercia Supplies (WMS) to The Consortium for Purchasing & Distribution Ltd.

WMS is a longstanding, successful business, providing a valued service to a substantial customer base in this part of the country.  It is owned jointly by Shropshire Council, Herefordshire Council, Worcestershire County Council and Telford & Wrekin Council. 

Whilst WMS holds a strong position in the current market, it is not considered an essential activity for the four councils, who want to concentrate on improving services for their local communities, such as social care, schools and waste collection.  The proceeds of this sale will help the councils invest in the vital public services they provide locally, at a time when money is tight.  All councils in England have been required by the Coalition Government’s funding cuts to rethink their priorities and the way they deliver services, as they make unprecedented reductions in their spending. 

One of the key assurances in the sale of WMS was the commitment to continue local jobs for WMS staff.  The new owner is a respected and well-established business in the cataloguing and supplies market, with over 40 years experience in the sale of education and care home products.  The four councils are selling the main catalogue business of WMS together with the trading name, but the utilities element will be retained by them and operate under the new name of West Mercia Energy. 

Councillor Keith Barrow, Leader of Shropshire Council, welcomed the sale, wishing The Consortium a prosperous future: 

“With ever increasing pressure on public sector finances, we all have to take stock of how we spend taxpayers’ money to get the best value for local people.  WMS is in a robust financial position and no longer relies on the support of the four councils to trade profitably.  So, we believe that now is the ideal time to secure a bright future for this local business, in a way which enables us to focus on delivering the crucial services local residents have said are important to them.  I wish The Consortium, and all the great staff who work for it, every success in what I am sure will be a thriving and profitable future.”