Business Planning

Background

Specialist plastic forming and engineering business primarily serving the commercial aviation industry. This family-run firm has been established for over 40 years and enjoys an excellent reputation for quality, delivery and technical expertise. Prior to the Coronavirus pandemic the business was strong and profitable. Management were working hard to reduce dependency on aviation, securing contracts in cutting edge robotics for world-wide customer service applications. However, like many other firms the business was blindsided by the Coronavirus pandemic which resulted in a 50% reduction in revenue.

Immediate Decisive Action

A Secantor NED guided the management team to implement an immediate plan to safeguard the business including:

• Furloughing of staff not critical to fulfilment of confirmed orders.

• Detailed cash management, forecasting, debtor controls & creditor management.

• Financial forecast re-written and first CBILS loan secured.

• Cost reduction plan implemented including a two-thirds reduction in workforce through redundancy at all levels of the organisation.

• Pivoted business to produce PPE products although this later proved unviable.

Outcome

The bank approved a second CBILS loan bringing total debt to 40% of revenue. This extensive level of lending was agreed based on the strength of the business plan and the bank’s confidence in the management team of which Secantor’s NED remains a core part. The financial modelling reveals that the consolidated business will deliver more profit than was previously achieved on twice the revenue. Secantor continues to oversee implementation of the plan acting as NED, mentor and external challenge to the MD and management team.