June 02, 2019
Improving the bottom line by £600,000 in 12 months
Our client is a systems integrator providing high end solutions and services to airports, universities, public sector and corporate organisations.
The company had made large losses due to low margins on its major installation projects and an overhead structure that was excessive. Working capital was depleted and the business was facing the prospect of liquidation or a distressed sale. In the short term the losses had to be stopped, whilst providing sufficient people resources and skills to support its high end clients.
How we helped address the challenge:
Mentoring support was provided to the CEO throughout this intense turnaround.
The overheads were reduced and the management structure streamlined
Pricing increases were applied, which had minimal effect on sales conversion
A rolling 90-Day Plan was developed with the leadership team by function, to provide focus and accountability on the priority business improvement actions.
A regular management review process of the 90-Day Plan was introduced at each leadership meeting.
There has been a significant improvement in the financial performance of the company over the last 12 months:
- The bottom line was improved by £600k
- A distress sale has been taken off the table due to the improving profit and cash flow position
- Pricing actions have improved the gross margin
- The business leader has grown in positivity, confidence and resolve and has adopted a hands on leadership approach, which was needed, given the extent of the turnaround required