Restructuring finances results in profitable growth
The client was an interior construction company working in the leisure and hospitality sector for leading-name organisations and pub chains. Fast moving and needing to keep up to date with the latest interior fashions, their customers had demanding refurbishment schedules. The client needed:
- a restructure of finance and further funds to meet its fast rate of growth
- greater focus, improved systems and controls, and team development.
Understanding the business was an essential part of this process, while seeking bank or equity funding support during this growth phase. The team needed to manage the growth from both a cash management and team competence point of view.
What we did
We produced a business plan with financials detailed over a three-year period. This gained the support of the bank. We identified a high net worth individual who took an equity stake and made a short-term loan to the company.
The management team had ongoing mentoring support in the key areas of sales, operations and finance. We introduced a system of setting and monitoring key performance indicators for all staff.
Cash flow was further helped by our involvement in the recovery of a long-standing five-year debt.
The company realised sustained growth in the next three years. The management team are leading rather than responding to operating pressures.
The short-term loans have been paid off and the investor enjoys regular dividends.
We maintain regular monthly contact with the client and are assisting in developing new service areas.