Matt Horscroft, J2 Sourcing

Hello everybody. I'm Jeff Jerge, chief of pearls with Oyster Aero and I got to meet Matt Horscroft with J2 Sourcing a couple weeks ago and uh I thought Matt would be great for our podcast. Matt, how are you doing today? I'm very good. Very good. Yes, the sun is shining so that's a a nice unusual pleasure in the UK recent time. Yeah, we're all good. Yeah, all good. We're coming out of winter and of course we're all getting ready for MRO in Atlanta in a couple of weeks. So looking forward to seeing everybody and meeting you as well. Um so I kind of you know at the Oyster Aero podcast we really like founders and entrepreneurs and um you know we've had Abd Doll with GA Tellesis all the way down to you know Smart Search from startups and and you guys are kind of in the middle there. So um tell me a little bit about J2. What do you guys do today? Yeah. So, yeah, we well to to cut it back to the bare bones, we we're kind of we're now a stockist really for um um aerospace, you know, the commercial aviation world. Uh we've got yeah, lots and lots of I'd say probably yeah 70 80% consumables and some ro um inventory.

We've got a really large European uh consignment partner who's you we're helping them with some solutions, you know, for their excess and things like that. Um we also were quite aggressive purchases as well. So we got a large consignment on its way from Asia as well to balance the fleet because we got a lot of um Boeing and Embraer I would say the main and the Havlin sort of bombardier stuff but we're now going to we we got a lot of consumables coming from Airbus um inventory. So we yeah we balancing it that way. Um yeah so really we we try and support the aftermarket as much as we can with stock but also with a really good supply chain if we haven't got it. And um we're also distributors um for the non-airine um customers for Saffron Saffron cabin. That's a re recent thing. Um so yeah, there's lots and lots been going on. Um so yeah, that in a nutshell, we yeah, I'd say we're we're hopefully a very good supporter of the airline industry for mainly consumables, but some, you know, whatever else people want. We've got some really good airline customers and MRO customers and and we work brokers as well. Oh yeah, ruin the job.

Just support We support everyone and not piss anyone off really. That's that's the that's the deal. How did you fall in aviation? Ah, wow. Yeah. So, about when I was a child, I was a little bit older of a child. I I I was about 19 and I got my first job, full-time job. I was working at the the airport and I was playing a bit of football and paid a little bit money for that as well. Thought I was living the dream. And then I was cramming in so many shifts to do um you know play football and do weird times at the airport. I ended up falling asleep driving and had a really bad car crash. And my mom is a South London warrior and she basically banned me from doing shift work and I had to find a job. And my dad who's a very hardworking guy sort of did sort of six days a week um and all doing all sorts of different things. And one of the jobs he did do was buying and selling part uh cars. And uh one of his customers who I'd known since I was about seven or eight um bought company cars and whatever and used to see him in the pubs and whatever we used to do and from about nine I think he wanted me to work for him and I kind of put it off until then and my mom was like you got to ring bloody Simon and um go and you know see what he's he's all about. And then I started in stores with him when I was 19. And I stayed there to obviously booking in parts and paperwork and we had some really good customers. And I was very very privileged back then. I was allowed to go on some of the trips, you know, some of the shows and meet people, you know, even at that age, you know, and they were very sort of social people and really Yeah. And I I enjoyed that part of it, but I I wasn't necessarily the most ambitious type. I thought football was my thing and I was it was paying my rent. I live with two other fellas and I was like this is great. I've got a little job here and whatever else and and then it I guess that's the foundations were there and I I knew a lot about I knew a lot of people then because I was really introduced to a lot of people and I knew about the parts and and the paperwork and it was a really good education. It's like an apprenticeship really and yeah

it feels like a lifetime ago and it really was but and and the exciting thing is my old manager now works he's he's retired. and I dragged him out of retirement, but he does some inventorying for us in the warehouse. So, Oh, that's cool. That's quite cool. Yeah. So, full circle kind of kind of totally full circle there. Yeah. So, um J2, when did it start? J2. So, J2 Sourcing, the parent company, they were founded in 2004 and they do sort of semiconductors and everything like that. Um and when uh my old um one of the directors, so it was quite a sad story, one of the directors passed away, the other guy kind of um felt like actually now's my time to step away and um you know be a maybe go into retirement, enjoy some of the you some of the fruits of his hard work. And that was made my time to step away. and I had a few options and I was like but actually there was a guy that had I'd come across and he's one of the nicest men I've ever met but he's very successful as well and he always said he said to me a few times yeah you if you're ever interested in um you working for a company in Sweden so I made the call when I found out you the direction of my old company was going I worked there for 20 years I felt like I'd done my done my time um and we made the call and he was like I can't move to Sweden but what's your sort of idea and I told him mine and we kind of he was like, "Yeah, I think a you aerospace is really cool. I'd like to get into it and you you've been recommended by there was a company called Fauler at the time.

You're really someone you we should work with." And so we did a little bit together previous but it was like I don't know it was a bit of a random phone call really. And we started J2 Aerospace just yeah like a I wanted to work with him and he I think saw some good in what you had. We've got a similar sort of mindset. He's obviously he's a very experienced and I felt like I'd learned a lot from him and he was a nice guy. That was the the the kind of key to it. That's always a bonus, right? Yeah. I mean, yeah. I was under no under no illusion. If someone's going to invest in a in a startup company, they're going to want their pound of flesh. But, you know, not shy of work and no one, you know, that wasn't the the problem really. It was just like, how are we going to get it up and running? And we had some ideas and this is Yeah. And yeah, Christ, it was that was December 2019. And then everyone knows the story what happened early 2020. Sure. Yeah. And at the time we'd signed a threeyear office lease and we're ready to go. We got two new staff.

There's three of us who started it and it was like, wow, well now what do we do? And I sort of looked at my skill set and I was thinking I might be a good postman. Chat up the old deers and deliver letters at a social distance. But but they were very very good. They they kind of Yeah. They said we're in it for the long run. And funny enough, their world went berserk in another way. So semiconductor world, there was shortages and if you probably remember the delays with make making cars and things like that and they they had two exceptional years financially, obviously not as um in a different way. I mean, Sweden never really shut down, but obviously we all suffered the the social effects of co but the actual financial and that kind of bought them some time and yes, we're as good to his word. He just said to me, you know, we're in it for the long run. We believe in it and don't worry, but obviously that's a that's an easy thing to say when there's no revenue and there's, you know, everyone's immediately on furows and things like that. But but sure there's winners and losers in every sort of disaster. And yeah, the we won in a a very weird way that we actually had some extra time to be able to put the foundations in. You know, the cuz we had everything was a blank slate. Yeah. It from the banking to the the quant we use quantum component control. You know, it's just setting everything up, you know, in almost like theoretical when we start trading, this is what we're going to do. And Right. Right. So that's kind of how we utilized our time and and obviously when I was free to sort of travel a bit. I was sort of knocking on doors and seeing some people that you know some really good people I get to know got to know over the years and this is a great thing about this industry has been very social and you I feel like I've made friends out of this and most of the the immediate conversation was Matt we want to work with you but we can't do semiconductors and and that was probably the one the biggest mistake we made at the beginning is calling it J2 Sourcing because it was ex I do but that was the a conversation yes we had over when me had over a few beers or what should we call it I don't just call it say just we've limited we didn't think uh but since then we've kind of rebranded so we

are J2 Aerospace but under the you know the umbrella of the I mean in the group of companies there's now five companies that they've they've got in the J2 group um we're one of them but we're sort of J2 Aerospace but we're still legally J2 Sourcing Limited but you know that's kind of the background of it and it was very interesting time and we and obviously you see a lot of the big players you know they really suffered you know they had a lot of airline debt, I would say, on their shoulders and lots of um components they owned and maybe had some loans on that were worth a tenth of or a quarter of what, you know, they they were. And obviously we know we all know that a lot of people lost their jobs and moved around, some left the industry. Some came back but in different roles and yeah it was a very it was really weird time and that's putting it mildly and but yeah we we won I think in we got through the the hardest part but we used that time in yeah you know we we were working really really hard in the background yeah a lot of my mates were like oh this is great you know paid to just sit in the garden cuz and the weird thing about co the first time the first lockdown it was the best weather we'd ever had in like April May so that we had co tans and co haircuts you know, that was the Yeah.

But we were working really hard and it all kind of started from the dining room table, I suppose. And then there was a couple of guys in Sweden who really supported us as well, sort of helping with the stock sales and we had a they had a big warehouse out there and we had some stock in there and we kind of got through. We muddled through, I suppose, is the word. And then we come out the other side and we could then make plans when you start seeing some revenue come in and we started to you invest in the right things and we got some really good people who work you know they were unbelievable at the start you know I can't credit them highly enough this is all about J2 is all about the people and everyone who's been part of this show has been amazing so yeah yeah that's the thing I absolutely love about startups is your first round of hires like we're kind of going through that now it's so pivotal, right? And and it's so much fun because, you know, you worked at some larger companies, right? And and you're responsible for this. But when you're in a startup, I mean, if the warehouse floor needs to be cleaned, we're cleaning it. You know, if you need to program something, if you need to do accounting, you're doing it all. And but it it really drives a team together.

Like I've never experienced anything like it. And it's it's thrilling, quite frankly. fell and and it's like everything you every day there was a little win. There was big wins, little wins. There was and then there was some not you some setbacks as well, you know, but at the same time it just felt like so much is accomplished and even like something very small. Oh, hang on. We got an account now or you know we cash flow we didn't have to prepay for someone for once and like all these little slot like and you you'll get this the pieces of the jigsaw then slot together and you the small wins become bigger wins and the experience you gain is just absolutely I is I don't think I'd want to do it again because it's been if if you'd have told me what you some of the minefields that we were going through but we get to now and I'm like wow you know I'm so proud of everyone his efforts at the beginning and and like you say your first ties and then it was an exciting time. Oh, hang on. We've got we've now got 17 of us. But before that, it was you know three or four of us and then five and the challenge of not actually really seeing each other. It was all like this. I mean no offense but it was video calls and we probably went to that office 10 times in the first year you know because of this the various lockdowns and whatever but you know but you look back with some some fondness there's but like you say you know it is it's key to your growth and how you start and lay the foundations it's like cultivating you know people have different roles and you cross over and then eventually things start the business starts to dictate and people find their roles you my roles changed tremendously the last even two years, you know, and but yeah, it's an exciting time. So, embrace it, enjoy it, look back and go, "Oh, yeah, there's some moments of terror in there as well." But, uh, we're we're having a good time. So, uh, we have MRO coming up in two weeks and you and the team are going to be in Atlanta, right?

Uh, unfortunately, not Atlanta. We've got a lot of stuff going on. We've just got we've got 8,000 lines. There's like a dark cloud but with like a golden sunset sunrise behind it due during and it's all hands to the pump. So even that is you know I'm not saying oh there might be times where we're going to be in the warehouse and stuff. It's the selling it's the booking thing in and also keeping operations. We've got to a level now you know there's we we provide a customer service that it needs to stay at that level. So we've kind of respectfully declined that one. Um we're going to go to a couple of the more local ones. There's there's one in um Prague which I'll be attending hopefully and a couple of the other team and and longer term. Yeah, obviously we we love these shows and meeting up with everyone and we can buy each other a beer face to face then, can't we? And stuff like that. There you go. Well, I'm sure we'll be at MR Europe. We're definitely going to do that. So, yeah. Well, good deal. All right, Matt. Um I really appreciate it. I'm excited to see J2 moving along. Um we're excited to get um you know, your material list on Oyster as well. I think it's going to be a good liking Oyster a lot and some of the content that you have they're asking for. So, um it's really cool, but it's awesome to meet you and I hope that um you know, everything continues to keep on growing well for you and and like I said from my side as well when when you sort of described your product and everything. Yeah, I can see really good things for you in the f I don't need to tell you this. You know this yourself if you believe in the product, you know, but I can see some good things happening in the future. you're you're a a part of the market that that it's that's needed.

So, yeah, I wish you all the best there as well and we can hopefully jointly be toasting success, you know. There you go. Thanks. All right. Well, um yeah, thanks for coming on the podcast and we'll talk. Thanks for inviting me. All right. Nice to see you, Jeff. Take it easy. Yeah. Take care. Bye. Bye.