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.