Case Study 2: Joinery Manufacturer
COMPANY PROFILE
| Sales: | £4 Million |
| Employees: | 60 |
| Products: | bespoke joinery / shopfitting |
| Markets: | shopfitting + custodial furniture |
ASSIGNMENT TYPE
Review + 100 day plan + mgt support
Mix of advisory & hands on
IMMEDIATE ISSUES
- unexpected monthly losses of £50K/month 3 months running
- cash headroom reducing rapidly
- highly entrepreneurial MD with weak senior management
- no reliable mgt information
- poor business controls and no KPI's
- reasons for losses not understood
- no recovery plan
- massive manufacturing labour inefficiency
KEY TURNAROUND ACTIVITIES
- immediate exit from bespoke joinery sector
- implemented quality filter on all new work
- changed senior management team
- implemented new production planning system
- implemented contract costing/review process
- new suite of KPI's, reporting & financial controls
- developed regular performance reporting
- communicated progress to key stakeholders
IMPACT WITHIN 12 MONTHS
| Before | After | |
| Monthly Sales | 332K | £338K |
| Monthly EBITDA | (27)% | 14% |
| Break-even sales (per month) | £355K | £270K |
| Gross Margin % | 24% | 32% |
| Monthly o/heads | 106K | 95K |
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