Welch brings in big hitters at Blackcircles

MIKE Welch, the entrepreneur behind online tyre company Blackcircles.com, has brought in a team of directors to oversee an ambitious three-year growth plan.

Neil Arnott, formerly head of supply chain at rival Kwik-Fit, joined Blackcircles as trading director on Friday and is the latest in a string of high-profile appointments.

Welch has also drafted in Alan Garland, previously of PR firm Big Partnership as marketing director; Graeme Cole, a technical designer at Scottish Life for more than 12 years, as head of IT; and Charlie Dickson, former managing director of Farmer Autocare, as head of franchise.

The Blackcircles managing director said he is braced for strong growth over the next three to five years as the firm reaps the benefit of a deal with Tesco and a "significant" investment in its franchise network of garages.

Blackcircles is to launch its first television advertising campaign this year as it seeks to expand its range of motoring services.

Welch said the firm has invested "very heavily" over the past 12 months to rebrand 300 of the 1,200 garages that fit Blackcircles tyres under the firm's banner.

Although he started the company in 2001 as an internet venture, Welch is keen to increase its footprint at street level.

"We were just using the internet as a platform to get on to the high street," he said. "Over the next three years you'll see the franchise network really start to shape itself. That gives us a platform to do a ton of things through the network rather than just through the internet."

Accounts to be filed at Companies House later this year are likely to show that Blackcircles.com "broke even" between January and December 2010 but Welch said this reflected his decision to invest in the business using cash rather than raising debt.

"Over the next three years we expect to see significant profit as a result of that investment," he added.

The deal with Tesco will give the company access to the supermarket giant's 13 million customers through its Tesco Direct website.

The two companies have also set up a separate Tesco-Tyres.com portal and Blackcircles will also be able to make offers to Tesco Clubcard customers. Welch expects to see sales lifted by at least 40 per cent.

Welch, who started the company when he was 23, admitted he may at some point be tempted to appoint a managing director to pursue other entrepreneurial activities. "I think I have a couple of businesses in me," he said.