International Software Group - £10 million t/o

The client was an owner-managed business specialising in output management software (one of only five in the world at the time). Originally the client company was a hardware company, but software allowed greater flexibility and sophistication. In an attempt to float the company, the client had severely over spent, resulting in £0.5m negative net worth and stalled growth. When Collingwood arrived, the company was the subject of a hostile takeover bid.

Collingwood was hired as CFO to restore the client company to profitability and growth, and to prepare for a further attempt to float. The main changes made by Collingwood were:

• Immediate overhead cost reduction. A 10% reduction in costs was achieved without effecting growth or quality.
• Introduction of confidential invoice discounting (CID). This allowed the client the funding to continue development.
• Decentralise sales. A new country-centred approach was adopted for European sales instead of relying on achieving sales from the company HQ in Hampshire.
• Raise VC funding. £4m was raised through a leading UK technology VC.

After eight months and 115 days Collingwood involvement, the client company became profitable, started to grow again at the expected rate. The client is now an exceptional success that it is due to IPO this year (about five years after Collingwood involvement). The client is now an exceptional success and has been sold to Bottomline Technologies for $22m.