February 18, 2022

Business Transformation: 250% Increased Turnover and Record Increase In Net Profit

Business Transformation: 250% Increased Turnover and Record Increase In Net Profit
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Since working with José he has helped us to gain full control of the business. Despite having that ambition and will to succeed, we really needed help to understand how to make those fundamental changes and grow our business. I was making key decisions in my head without the data to back them up. I now have a new mindset, manage my time effectively and have a structure in place that really allows me to focus on the business and its continued development. This has helped us to now invest in our staff and business, and we are now seeing the benefits of all those decisions we have implemented with the benefit of José’s support and guidance. We are all excited to see what the future offers DT Fire Systems.

Darren Thorne, DT Fire Systems

What DT Fire has achieved with the help of Rathbone Results and how they have helped

Founded in 2007, DT Fire Systems designs, supplies, installs, and maintains fire and security systems nationally, across large and multiple commercial sites. The last five years have seen the development of an end-to-end job management software system which differentiates DT Fire Systems within the industry.

The Challenge

Turnover was in decline and the business owner recognised the need for help and expertise to maximise opportunities in future growth. We identified a range of focus-areas for improvement:

  • Overall understanding of business fundamentals and how to measure and manage these.
  • Insufficient profit margins to allow for growth.
  • Insufficient visibility over cashflow and financial performance and profitability.
  • Operational management and cross-company processes.

How we helped address the challenge

Rathbone Results Partner, José Lehmani spent the first 12 months working with DT Fire Systems to identify a firm direction and vision for the company, with an action plan to achieve it.

Business fundamentals were reviewed:

  • Restructuring financial information.
  • Establishing management accounts and combining with other forecasting tools to provide visibility and understanding of turnover, gross profit, and overheads.
  • Changing the company mindset from mark-up pricing to a gross profit mindset
  • This required a redefinition of cost structure and the application of a relevant gross profit to achieve net profit goals – plus a process for project costing streamlining client proposals.
  • This overhaul required changes within the operation management software (Simpro) and accounting package (Xero) to allow information extraction and reporting.

The results

  • In a COVID lockdown year, DT Fire Systems turnover was stabilised and after 12 months, runs at a 250% increase.
  • We supported DT Fire Systems with government funding and R&D claims, to the point where net profit is positive and sits at 10 times the level a year ago – meaning DT Fire Systems is on track to achieve its vision.
  • From the original discussions about how DT Fire Systems sees their business in 3 years, we have won 2 years.

Conclusion

Rathbone Results work with DT Fire Systems is ongoing and the action plan is still in delivery phase. The financial foundations are almost complete, KPIs are in process, and turnover growth now needs to be managed whilst maintaining USPs and high quality of delivery.

The next phase of challenges includes the recruitment of additional operational and support staff, the development of a marketing strategy and the liberation of top management time, to concentrate on business development actions.



If you are ready to take the next step in unlocking the potential in your Fire and Security business please get in touch

Quote

Since working with José he has helped us to gain full control of the business. Despite having that ambition and will to succeed, we really needed help to understand how to make those fundamental changes and grow our business. I was making key decisions in my head without the data to back them up. I now have a new mindset, manage my time effectively and have a structure in place that really allows me to focus on the business and its continued development. This has helped us to now invest in our staff and business, and we are now seeing the benefits of all those decisions we have implemented with the benefit of José’s support and guidance. We are all excited to see what the future offers DT Fire Systems.

Darren Thorne, DT Fire Systems

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