Part-Time CFO Services In Basingstoke

How Has A Part-Time CFO Helped A Business Through A Turnaround And Sale?

A long-established family-owned retail group, with its own manufacturing arm and several hundred staff, was making losses of millions of pounds over successive years. Its bank's support unit referred it to Secantor when it had too little cash to cover the following month's payroll.

Secantor acted as Finance and Turnaround Director. The first step was a daily cash forecast giving four months' visibility, and personal conversations with creditors that led to time to pay arrangements the business then kept. An 18 day strategic review followed, with interviews across head office and production and visits to outlets, and it concluded that the business could be turned round rather than sold or merged. The directors and shareholders agreed the plan, and so did the bank, which supported it throughout.

The board was restructured, with new directors bringing retail and finance skills, a three year business and financial plan gave every budget holder clear accountability, and monthly management accounts and KPIs went to a board meeting each month. Production was restructured and modernised, surplus property was sold, and a new Retail Director put every outlet under management accountability, with a performance-related pay scheme and a business plan for each store. After eight months a new bank provided the larger funding the business needed to invest.

A £2m annual loss became a £250,000 profit the following year and £1.5m in the year after. In year three Secantor initiated and guided the sale of the group to a national chain for £14m. Read the full case study.