Service sector (turnover £15 million)

Based in the North of England the Company owed HMRC £1.5 million, had significant creditor pressure and had lost credibility with its funder. My actions included the following: I closed a number of its satellite offices; reduced the head count significantly; renegotiated the margin upwards with some of the customers; agreed with the trade creditors and HMRC a reasonable repayment plan; kept the incumbent funder supportive until, based on the new Turnaround business plan one of my other funders replaced them and I recruited a new Financial Director.



A South East based Company, whose turnover had fallen 22% in 12 months (from £12 million) and its gross margin had fallen from 25% to 18%, had a resulting cash hole and arrears with creditors and HMRC. Working with the directors : I reviewed the future pipeline of orders and only pursued those with a gross margin over 25%; ensured the company correctly invoiced for additional work required; removed £575,000 of payroll overhead and £135,000 of non payroll cost; improved the financial reporting; brought in training and coaching/performance development for key management. Then, based on a new robust business plan I had prepared met with the six largest creditors and negotiated an informal creditors agreement releasing £700,000 of immediate cash pressure an I agreed with HMRC a payment plan and replaced the inappropriate and unsupportive funder.