Interim Turnaround Management Team
Your means of getting
a business back to profitability
Many business ideas fail to reach their potential and achieve
success. It is rarely a case of bad luck, and most often the result
of poor management, perhaps coupled with insufficient funding.
Usually, the unsuccessful entrepreneur is very good at one or
more of the disciplines needed to make a success of their business,
but has shortcomings in one or more key aspects of the management.
It could be HR, Operations, Marketing or Financial Management.
There are so many important areas that require both ability and
knowledge. Sometimes it is merely the lack of someone acting as
an effective Chair that is the problem.
Resources is a group of independent, successful business professionals
who can come together at short notice to
review a business and identify those areas where management support
is required. Crucially, they are able to take a “hands on” role
in managing the business and taking it forward. They are able and
willing to be appointed as Directors of the business and can act
as guardians of the creditors’ interests.
If the current lender is unable or unwilling to continue to finance
the turn round Anglia are able to look at refinancing all or part
of the business with another lender.
Turn round case 1
Airline catering business with operations at Gatwick and Heathrow,
over £100 million in a worsening
market and a highly unionised workforce of 1500.
Diagnosis: The annual wage demand would make the company unprofitable.
The company had developed a reputation of conceding to wage demands,
and had seen falling margins. The decision was to make a stand
whilst the organisation was still strong enough to do so and to
increase productivity to restore profitability.
ACTION: Managed the union through the summer period to minimise
the impact of a strike, took decisive contingency action including
recruiting a replacement workforce and giving notice of
dismissal to all strikers
Result: The company lost the strike ballot vote but the union settled
under extreme pressure for a below inflation agreement and increased
productivity. Created a positive working environment where the
management and union respected each other and increased profitability.
Turn round case 2
turnover packaging manufacturer confronted with industry wide
recession saw profits slump as sales
fell, exacerbated by a vicious price war.
Diagnosis: Cut cost base without compromising quality and service
delivery in order to maintain viability of the business in the
Review and rationalise operations to provide a new base for capitalising
on longer term potential of business when industry cycle turned
ACTION: Implemented plan to reduce staff by 30%, selected on basis
that ensured that production rates were not jeopardised, rationalising
activity to increase flexibility of operation. Secured buy-in of
management, supervision and other staff to plan.
Result: Turn-round to break-even position quickly achieved. As
business cycle turned increased sales effort and better cost base
than competitors enabled company to invest in mechanisation and
automation, and to post higher profits than ever previously achieved.
Turn round case 3
Manufacturing company turning over £7 million,
spread over 5 sites, with 120 employees. The company was loss making,
due to a drop in demand for some of its products and a recession
in part of its customer base. The company was being squeezed between
high-end high volume competitors and low-end cheap, low cost base
Diagnosis: Too many fixed costs tied in with the five sites, some
duplicated activities, with over reliance on one customer (90%)
by one division. Some product lines were unlikely to be profitable,
given the costs of production and low volumes.
ACTION: The number of sites was reduced to two and work force to
60. The sites to be closed were gradually run down and the profitable
lines were transferred to the remaining sites. In nine months the
customer base was expanded for the division that was reliant on
one customer. The proportion of sales to the single customer was
reduced to less than 50%. Action was also taken to improve cash
flow by stock reduction and improved debt collection.
Result: The company was turned round to a profitable state, with
a wider customer base and improved cash position.
If you would you like to know more contact John Richardson on
01279 817102 firstname.lastname@example.org or Robert Lee on
01279 757005 email@example.com to arrange an informal initial