PC Manufacturer - £100 million t/o

The client was an owner-managed business whose turnover had risen from virtually zero to £54m pa in six years. All available cash resources generated by the company were put into growth so that the firm could compete with better-funded rivals. The client company had no funding other than its overdraft. The company was unrecognisable from when it had started, but there was a lack of corporate experience at owner-director level.

Collingwood was hired to fulfil the CFO role to:

• Help resolve the problems caused by the implementation of its latest computerised accounting package.
• Re-establish control over current assets, the control of which was essential in accelerating revenue growth.
• Produce accurate margin reports, so that accelerated growth could be planned.
• To help establish procedures appropriate to a £100m turnover company.
• To develop a financial model of the company to support the directors in the subsequent sale of the business.

During the two years of Collingwood's involvement, the client company doubled in turnover to £105m within two years. Profitability and gross margin both improved so that the company exceeded 10% pre-tax profit on revenue, and the firm was sold to Amstrad. This was achieved with no borrowing or further funding. The client company is the UK's largest indigenous computer manufacturer.