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

 

Choose a case study:

CASE STUDY 1:

Precision Machine Shop

CASE STUDY 2:

Joinery Manufacturer