Background: The client, a husband and wife team both former City lawyers took time out to tour South America which gave them inspiration to return to the UK to start a new business. Nine years later with energy, passion & determination they had successfully grown their business making chocolate organically and trading fairly through hundreds of shops via wholesalers, multiple retailers, their own stores and online retailing. A complex business for two Directors to micro-manage.
Issues: The business was well established with a successful brand loyalty and exciting innovative chocolate products but the Directors had become victims of their own success. Financial pressures highlighted the need for more urgent action to control cash, stocks and profit margins. The team’s bank manager sensed there was also more business potential to be unlocked so suggested that they meet Secantor.
Actions: Our Secantor FD joined the team on a part-time basis and over the last 10 years the following has been achieved with Secantor’s assistance:
A strategic review of the various parts of the business was undertaken providing direction through a structured business plan and financial projections. Budgets were prepared to plan, monitor & control future developments & growth.
Enthusiastic and competent young supervisors within the business with potential were identified and coached into a middle management team. They took responsibility for the day to day running of the business releasing the Directors to focus on strategy, brand development & new products.
Management accounts and forecasts were re-organised & KPIs were established for decision making as part of structured monthly Board meetings in which personal accountabilities were introduced for each member of the management team.
Some loss-making shops were closed and improvements to staff productivity, merchandising, customer service, sales and margins were achieved in remaining stores.
The factory planning, methods and controls were improved through tightened disciplines and strong supervision to enable the production capacity to quadruple and major productivity gains to be achieved.
Market research and planning was developed resulting in substantial product range and stock holding rationalisation whilst also developing new markets especially several major supermarkets in the UK & overseas.
Outcome: Losses were quickly turned around and sales and profits have grown massively over 10 years in preparation for a company sale. In November 2018 the couple sold their majority stake to Private Equity for a substantial value.
MD’s quote:
“Secantor has made a world of difference to our business – we are now in control. It’s been a transformation of the higher level work within the business”
“It’s a very cost effective way for us to have high level management and strategic help”
“We will never forget your huge contribution to Montezuma’s and your constant support, encouragement and all the board room laughs. Thank you for everything!”