H.H. & S. Budgett
Encyclopedia
H.H. & S. Budgett was a leading wholesale grocer covering South-West England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...

, South Wales
South Wales
South Wales is an area of Wales bordered by England and the Bristol Channel to the east and south, and Mid Wales and West Wales to the north and west. The most densely populated region in the south-west of the United Kingdom, it is home to around 2.1 million people and includes the capital city of...

 and the London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 area. It began about 1820 when Samuel Budgett
Samuel Budgett
Samuel Budgett was an English merchant.Rising from humble origins, Budgett built up a wholesale grocery business called H.H. & S. Budgett, based in Kingswood Bristol, covering a large area of Southern and Western England and South Wales, which outlasted him by over a century...

 (1794 – 1851) became a partner of his half-brother Henry Hill Budgett (c 1779 – 18??) in the latter’s small shop in Kingswood
Kingswood, South Gloucestershire
Kingswood is an urban area in South Gloucestershire, England, bordering the City of Bristol to the west. It is located on both sides of the A420 road, which connects Bristol and Chippenham and which forms the high street through the principal retail zone...

, Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...

. Samuel had a passion for trading. He introduced the practice of buying in bulk and delivering to other small shops like his own. This grew rapidly so that, at the time of his death in 1851, Samuel was giving away £2,000 per annum out of his share of the profits and the company had customers from Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...

 to Penzance
Penzance
Penzance is a town, civil parish, and port in Cornwall, England, in the United Kingdom. It is the most westerly major town in Cornwall and is approximately 75 miles west of Plymouth and 300 miles west-southwest of London...

. His descendants and non-family partners continued to manage the business well and it flourished for over a century.

Budgetts were taken over in 1961 by Scribbans-Kemp. They still continued, still with family members on the board but gradually declined as a business under the relentless pressure of the supermarkets. Although they changed to some extent: opening Cash & Carry Warehouses for retailers and buying retail shops themselves, they had failed to seize a strong position in the supermarket trade at an early stage and consequently were perhaps bound to fail in the long run. By 1977 Budgetts, together with Oakeshotts, had been sold for “almost £5m” but it is not clear to whom.

Beginning

Samuel and Henry were both sons of James Budgett (1749–1823). Henry was the elder son of James’s first marriage – to Ann Hill (1755–1787). After she died, James married Elizabeth (Betsy) Budgett (1767–1831) and Samuel was their first son. The family moved several times. In 1801 they took the shop in Kingswood. In 1803 parents and children moved again to Coleford
Coleford, Somerset
Coleford is a village and civil parish in Somerset, England, situated on the Mells River in the Mendip Hills five miles west of Frome. The village has a population of 2,350.-History:...

, leaving Henry Hill Budgett in charge of the shop. Henry was a grown up son of the first marriage, about 15 years older than Samuel.

The young Samuel had two passions: to be a missionary and to be a trader. His family were poor. They could not afford a missionary’s education and they were in need of an extra breadwinner so a trader it had to be. In April 1809 he signed indentures to be an apprentice to Henry but already he was a trader. He had made many trades with whatever he could find and before he left his mother and father (now in Coleford
Coleford
Coleford may refer to a number of settlements in England:* Coleford, Devon* Coleford, Gloucestershire* Coleford, Somerset...

) to travel to Kingswood, he gave her his total profits – the considerable sum (in those days) of 30 pounds.
In about 1816 the apprentice-ship expired and Samuel signed a three year contract to work for Henry, at annual salaries of 40, 50 and 60 pounds. During this time he started to put his trading skills to use and gradually took over the buying and pricing duties. At the end of that contract, about 1819, Henry had got into difficulties with a banking venture. Samuel however, had saved 100 pounds from his wages and he handed them over. In return, he was made a partner. Samuel took a small cottage near the shop and married Ann Smith from Midsomer Norton
Midsomer Norton
Midsomer Norton is a town near the Mendip Hills in Somerset, England, south-west of Bath, north-east of Wells, north-west of Frome, and south-east of Bristol. It has a population of 10,458. Along with Radstock and Westfield it used to be part of the conurbation and large civil parish of Norton...

.

Partnership

Samuel now was eager to put his trading skills to further use. Customers used to travel some distance to the shop and he started calling on them to take orders. Gradually he extended this to limited wholesale trading. His more experienced brother was nervous about these innovations and although that held Samuel back, it may have enabled them to keep the business in balance between safety and growth.

After they had mastered this limited trading they extended it. Hitherto they had sold in small villages. Now they would try towns. Samuel had bought butter when the market was low so he tried to sell it in Frome
Frome
Frome is a town and civil parish in northeast Somerset, England. Located at the eastern end of the Mendip Hills, the town is built on uneven high ground, and centres around the River Frome. The town is approximately south of Bath, east of the county town, Taunton and west of London. In the 2001...

. The big shops turned up their noses at a salesman from humble Kingswood so he hinted that the smaller shops (whom they supplied) might be interested. That was enough in some cases to make the sale. It became his normal practice to begin a fresh town with the large shops and sell what was left to the smaller ones. Also when making a later visit to a town, he would visit again those who had refused him before and present his day’s offers calmly. He always took care to give his first and best attention to whoever had first accepted him in any town. He trained his travellers in the same principles. In time the business reached as far as Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...

 and Penzance
Penzance
Penzance is a town, civil parish, and port in Cornwall, England, in the United Kingdom. It is the most westerly major town in Cornwall and is approximately 75 miles west of Plymouth and 300 miles west-southwest of London...

. A warehouse was built in Kingswood and the place expanded with new houses for Budgett employees. Samuel bought the grounds of an old quarry. Here he built a substantial house where he lived to the end of his life.

Other Bristol merchants were jealous. They made a ‘run’ on the firm by submitting accounts early. Samuel resolved to pay them as presented. He obtained emergency funds from his friends. When the cheque for the last account was given, he mounted his horse and raced the payee to the bank, seeing him enter by another door. So he was able to pay in more cash just in time. After the crisis was over, he visited the merchants who had made the run. He found that they had all been ‘informed’ by a former Budgett employee whom they had sacked. The brothers made this man apologise in public.

Samuel had a fixed policy from the beginning of not granting credit. If the customer was present, he had to pay in full, if he was distant, the traveller would call every four weeks precisely and must then be paid in full. Some shops refused these terms. Budgetts would not deal with those shops. Some failed to meet them. Budgetts would not trade with them until the account was cleared. Samuel saw families ruined as a result of overstretching their credit and felt that for one party to trifle with the rules was dangerous to them both. He also felt that if Budgetts set a good example, others would follow, to the benefit of all. On the other hand, if a customer was in difficulty and made a clean breast of it, he would do whatever he could to help. At that time, business on continental Europe was largely conducted on terms no longer than eight weeks and consequently much more sound than in Britain or the U.S.A. With our current experience of the Credit Crunch
Credit crunch
A credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...

 and its consequences, these points seem as relevant today as they were at the time.

In about 1842, Henry retired, leaving Samuel in sole charge. Soon afterwards, the Opium Wars
Opium Wars
The Opium Wars, also known as the Anglo-Chinese Wars, divided into the First Opium War from 1839 to 1842 and the Second Opium War from 1856 to 1860, were the climax of disputes over trade and diplomatic relations between China under the Qing Dynasty and the British Empire...

 broke out. This threw the tea trade into disarray. Samuel went to London and made a killing. Later in the year he lost as much. This taught him to avoid speculation.

Also in 1842 there was a major fire
.
According to the local paper, it was discovered at 7.15 am in the “titler room” (for refined sugar). Local people went to help and all the insurers sent fire engines but the warehouse and counting houses were destroyed. The nearby houses and the horses in their stables were saved and no one was hurt. The company’s books were saved. The fire continued until 4 am the next day.

The company was well insured and Samuel immediately rode to the smaller warehouse at Nelson Street in central Bristol and engaged the next-door warehouse. All customers awaiting deliveries were informed that those deliveries would be sent out the next day. By a massive collective effort this was achieved.

This apparent setback made the company stronger. The new warehouse was in a more strategic position and the internal layout was thought out again from the beginning.

Meanwhile, back in Kingswod Samuel improved his residence. The property was an old quarry. He had this filled in and made into gardens and farmland, forty to fifty acres. As well as providing his family with more space, this provided employment for local people. Later an old man said, “Yes; I remember when there were five men and three horses, and I have lived to see three hundred men and one hundred horses.”

Samuel died in 1851, leaving a strong and vigorous business in the hands of an excellent workforce and a family willing and able to continue along the same lines as before.

After Samuel Budgett

In 1875, the firm was reorganised. James Budgett and his son Richard continued the London business under the name “James Budgett and Son” . William and Samuel (son of the founder) continued the tea trade in London and the whole business in Bristol under the original name “H.H. and S. Budgett”

.

Limited Company

On 21 July 1898, the company became a limited company
Limited company
A limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be...

. H. H. and S. Budgett (Limited), with a share capital of £150,000, divided into 15,000 5% Cumulative Preference shares and 15,000 Ordinary Shares of £5 each had been formed to take over the old firm - Messrs. H. H. and S. Budgett and Co. Wholesale grocers and drysalters of Nelson Street, Bristol - under the existing management. On public offer were 10,000 5% Cumulative Preference shares at £5 ranking in priority over the Ordinary Shares. The vendors would take 10,000 Ordinary Shares in part payment of the purchase money for the business.

The directors (all Budgetts) were: William Henry, William Edward, James Herbert and Charles Theodore Budgett, all members of the old partnership. The Prospectus said the firm had been in existence for over 100 years, currently with “some four thousand regular and continuous customers”. Assets were: Book Debts, guaranteed by the vendors: £54,645, Stock-in-trade £32,571, Premises, Plant, Fixtures, etc. £44,938, less trade liabilities £67,601, net surplus £64,555.

The Auditors: Ogden, Palmer and Langton, Austinfriars, London said they had audited seven years of accounts and the net average annual profits were sufficient to pay the interest on the issue of Preference Shares several times over. Business returns were practically uniform and, as the sales were spread over a great number of customers, the risk of loss by bad debts was exceptionally small relative to the large annual trade. The average profit for the previous three financial years had been higher than any previous similar average and the profit for 1896/7 was the highest of the seven years under review.

The surveyors, J.P.Sturge & Sons, reported two buildings: “the commanding premises” at the corner of Nelson-street and Bridewell-street, leased from Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...

 Corporation for 75 years from 1879 at £600 per year, and the adjoining premises, leased by two leases from the corporation for 40 years from 1898 for £10 16s and £16 4s respectively, renewable every 14 years in perpetuity. Part of this building was sublet to J. S. Fry & Sons
J. S. Fry & Sons
J. S. Fry & Sons, Ltd. was a British chocolate company owned by Joseph Storrs Fry and his family.This business moved through several names and hands before ending up as J. S. Fry & Sons.- History :*circa 1759 — Joseph Fry starts making chocolate...

 and part to Lever & Co.
Lever Brothers
Lever Brothers was a British manufacturer founded in 1885 by William Hesketh Lever and his brother, James Darcy Lever . The brothers had invested in and promoted a new soap making process invented by chemist William Hough Watson, it was a huge success...

.

In 1913, there was a fire at the Bristol premises beginning at 7 am on a Saturday. It took six hours to bring it under control. No one was injured.

In 1920 154,500 Preference Shares were offered to the public to add to the 94,500 already in circulation and another 100,000 authorised but not issued. The interest rate had, by this time, been raised to 7 ½ %. 100,000 Ordinary Shares at £1 each already authorised of which 50,000 were issued to and held by directors and paid up, the remainder unissued. The directors (all Budgetts) were William Edward, James Herbert and Charles Theodore Budgett Annual profits to March were stated from 1912 to 1919. They showed a fairly steady rise from £15,000 in 1912 to £34,000 in 1919 The area of distribution was: The Midlands, South Wales and South-West England, with depots at Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...

 (Head Office, one whole side of Bridewell Street), Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...

 (Carr’s Lane and Great Colmore Street), Cardiff
Cardiff
Cardiff is the capital, largest city and most populous county of Wales and the 10th largest city in the United Kingdom. The city is Wales' chief commercial centre, the base for most national cultural and sporting institutions, the Welsh national media, and the seat of the National Assembly for...

 (New Street, next to the railway) and Swansea
Swansea
Swansea is a coastal city and county in Wales. Swansea is in the historic county boundaries of Glamorgan. Situated on the sandy South West Wales coast, the county area includes the Gower Peninsula and the Lliw uplands...

 (York Street, built in 1916). Sales also showed a steady rise, with 1919 being a record. Brands included “Crescent Brand” and “Red Ring” flour. The offer was subscribed twice over.

At the 1920 AGM, the chairman (W.E.Budgett) said they had been acquiring other companies that fitted well and they now covered the country from Newcastle-upon-Tyne to Lands End. Turnover
Turnover
-Business:*Turnover is sometimes a synonym for revenue , especially in European and South African usage.Services sold by a company during a particular period of time....

 had multiplied many times but much of the benefit had been taken by the Government in Excess Profits Tax. He was hopeful that this would end fairly soon. This year they had acquired Twigge and Butters of Liverpool
Liverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...

. The acquired companies were being run by their previous directors and there was a good corporate spirit.

In December 1932, the company offered 100,000 of 200,000 6% Preference Shares at £1 each in United Counties Stores. This was a company recently set up by Budgetts to run old-established retail groceries (currently 57 of them) located in the Midlands, Wales and South-West England. Budgetts held the 200,000 Ordinary Shares at £1 each. This arrangement continued for many years.

In 1951, 90,000 Ordinary Shares were offered at 22 s. (£2.01) to Preference Shareholders and 10,000 to existing Ordinary Shareholders. The Preference Shareholders took up 57,000 of the Ordinary Shares offered to them and the Ordinary Shareholders took up all of theirs. This appears to be the first time that Ordinary Shares were offered to the general public.

The dividend on Ordinary Shares for the year to 28 Feb 1956 was 10%. This was held in 1957 and 1958.

Decline

In 1961 the business was acquired by Scribbans-Kemp. Their chairman said it was an old-established firm with a very substantial wholesale trade in food commodities, notably sugar and a chain of over 100 retail grocery shops.

Reports in later years show Scribbans reporting challenging conditions and acquiring more and more other firms. In June 1967, Chairman William McPhail said he hoped conditions would improve. In January 1968, Chairman William McPhail and managing Director Dr. William A. Bullen were stated in a single announcement to be both leaving, having joined in 1964 and 1966 respectively. Then in August another grocery firm, Oakeshotts, were purchased for £1.5 million

At the AGM for the year ended 29th Mar 1969 Scribbans reported having sold their bakery business to J. S. Lyons
J. Lyons and Co.
J. Lyons & Co. was a market-dominant British restaurant-chain, food-manufacturing, and hotel conglomerate founded in 1887 as a spin-off from the Salmon & Gluckstein tobacco company....

 and to be acquiring more shops. The wholesale part of the business was converting to “Cash and Carry” stores. These were losing money – this would have to be controlled. The overdraft was up to £60 million and this would have to be funded. Lyons also reported buyng the bakery business at their AGM.

The name was changed from Scribbans-Kemp to Barker and Dobson between 1971 and 1973 and the share price moved downwards. In 1973, Budgetts and Oakeshotts had a new Managing Director. In September 1974 some of the Cash and Carry stores were sold.

Barker and Dobson had problems in 1975 and 1976. The Times said: “Trading losses and write offs reported”, 18 Jul 1975, “deeper in red” 31 Dec 1975, “Oakeshotts to dispose of 67 shops”, 29 May 1976, “Loan deeds breached”, 26 Jun 1976, “Lossmaker Barker & Dobson qualified”, 3 Aug 1976.

By 1977 Budgetts had been sold for “almost £5m” but it is not clear to whom. Budgetts began as a small shop in 1820, lost its autonomy 140 years later in 1961 and probably disappeared completely in 1977 after 157 years, a long record by any standard.
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