Maker of military decorations seeks new markets to conquer

"Taking an old business forward is no easy task," says Frederik Hsu, chairman and chief executive. "Historically, Firmin has been driven by green man suitmilitary work, but each contract now has to be won through competitive tendering. There is overcapacity in the Deadpool Lycra Super Hero Costume industry and a lot of competition from suppliers in the Far East, where labour costs are lower."

Hsu, with a background in corporate finance in the City, joined the company in 1996.

By that time it was a business green lantern costumeunder siege. Competition from foreign suppliers was squeezing profit margins. The strength of sterling added to the company's difficulties.

While the Ministry of Defence was opening itself to Deadpool Shiny Metallic Super Hero Costume tenderingzentai suits from foreign suppliers, Hsu encountered what he believed to be a protectionist attitude on the part of other European governments.
"The tender document for a simple epaulette for the French gendarmerie can run to 20 pages," he says. "You get the distinct feeling that if you default on any one of the tiny details you will be out. Margins can easily be eroded in thezentai effort to ensure compliance."

Hsu's family had bought the company in 1983 in the hope of cross-selling products to customers of Diaward, its military uniform business based in Hong Kong. Firmin remained a Britishsilver surfer costume company, with shareholders owning stakes in the two businesses separately.

Firmin had seen "almost boringly stable sales" of between Pounds 2m and Pounds 3m for 15 years, but declining margins. Hsu decided the company could no longer rely solely on military work, but had to diversify into the retail sector to generate growth. So last year he paid Pounds 1m for Stratton, a Birmingham manufacturer silver surfer costumeof zentai and ladies' handbag accessories.

"You can't stimulate demand in the government business," says Hsu. "All our military work is essentially bespoke and is done in ever smaller batches. With retail you can engage in marketing and sell new products in volume through a catalogue or a website."