Background: Transition Exposing Financial Weaknesses
A long-established, brand-leading dessert producer underwent an unexpected leadership change. A new General Manager stepped up internally to oversee operations, uncovering significant gaps in financial controls and awareness.
The Underlying Issues
The company was dealing with:
- Incomplete accounting records.
- Lack of internal controls, reporting analysis, and cash flow forecasting.
- No budgetary controls or production forecasting.
- Finance team with limited stakeholder management understanding.
- Minimal cost control.
How Headstar Stepped In
Initially appointed for a 10-week review of finance and operations, a Headstar Fractional CFO quickly established a good working relationship with the UK Management Team to develop the following solutions:
- Identified key financial risks and stabilised the position.
- Improved control through robust systems and processes.
- Created accurate management information and reporting.
- Challenged and refined the original transition plan using financial evidence.
- Developed an 18-month strategic transition plan.
- Built a consistent finance culture across operations.
The Impact
- Expert advice retained – The Headstar Fractional CFO remained in place to advise on cost saving initiatives and investor matters.
- Improved decision-making – Accurate data enabled strategic planning.
- Finance leadership – Management team mentored and supported.
- Cost savings & cash flow – £1m saved; cash flow improved from -£2m to £0.5m.
In the Words of the Client
“Our Headstar Fractional CFO began working with us when the company was in a period of uncertainty. Their calm, structured and process driven approach has created a framework for the team to push the business forward in a positive way. They supported the business technically, and coached and mentored the team too.” – General Manager
Find Out More
To learn how a Headstar Fractional CFO could help your business improve profitability, streamline operations and stabilise cash flow, visit our services page or get in touch with the Headstar team.
