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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.
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