Case Study 1: Financial Services Group
This client was referred to me by an Insolvency Practitioner, as a number of the Group companies were placed into Administration, and therefore the initial assignment was a turnaround project.
There was a very weak accounts department, with no accurate management accounts, reporting or cash control systems. I established the true financial position, recruited and trained a new accounts department and developed systems to report meaningful and timely management information.
I worked very closely with the MD, and following an initial review a new investment of £100,000 was raised from existing shareholders. Losses were stemmed and cash brought under control. I monitored and managed Financial Services Authority requirements.
After a short period of time the company moved from loss making to ongoing profitability and growth, and over the next 4 years a number of new companies were brought into the Group, including a Gibraltar based business.
I was closely involved with the due diligence of this acquisition, and ongoing operations of this company. In the first year of my involvement profits of the Gibraltar operations were doubled from c £ 500k to £ 1 mil p.a.
During a 4 year period Group turnover grew from c £ 2 mil to £ 8 mil and staff grew from 35 to c 120.
Case Study 2: Furniture Distribution Company
I was appointed at a time when the company was preparing its 1 year accounts, and draft figures suggested a loss of c £ 10,000 on a turnover of c £6 mil. I was due to have a reasonably long overlap period with the outgoing previous Finance Director.
Within 1 week I discovered some serious errors in the accounts, and the accounting period was extended by 4 months. In the 16 month period the company actually reported a loss of £ 963,000! The previous FD was dismissed rapidly, and I took control of the accounting function. There were many areas of dysfunction, both within the accounting, financial management and trading operations of the company which were rapidly brought under control.
In my first year of appointment turnover was slightly reduced, and the company reported a profit of c £ 250,000. At the time of my leaving the company was stable and generating ongoing profits.
Case Study 3: Hi Fi and Home Cinema Co:
This company is a long established Hi Fi business selling “top end” equipment. Unfortunately it suffered a major flood and it resulted in significant business interruption leading to a loss making period.
After a review of overall operations an underperforming associated business was closed down, and an internet trading business for “trade in stock” was established. After some time the business interruption claim was settled by the insurers, in excess of £ 200,000.
The business has been re-branded to reflect its market position targeting high net worth customers, and turnover is growing on an annual basis by c 25% – now c £ 1.5 mil pa.
The company is now trading profitably. A business plan has been prepared to include a showroom refit, and the company is currently in discussions with a number of potential investors.
I worked closely with the other board members to bring about a successful turnaround, and the company was saved. My role included close liaison with several key stakeholders, including the bank and major suppliers.