Background: Pandemic Growth Creating Cost Pressures
A logistics company serving the online retail market experienced unprecedented sales growth during the pandemic. However, the existing infrastructure was no longer fit for purpose and costs were spiralling.
The Underlying Issues
Key challenges included:
- Strained management infrastructure.
- Reluctance to address the seriousness of the financial position.
- Inadequate systems and processes.
- Rising costs and falling margins.
- Lack of senior finance expertise.
- Unhealthy cash flow and poor financial control.
- Need for strategic planning and change management.
How Headstar Stepped In
A Headstar Fractional CFO worked closely with the company directors to:
- Analyse margins and cash flow position.
- Establish KPIs for accurate financial management information.
- Build a constructive relationship with the lender.
- Improve financial credibility and trust.
- Secure increased short-term overdraft facilities through robust financial planning.
- Refocus directors on managing strategic growth and sales.
The Impact
- Better cash flow visibility – Introduced a weekly cash flow forecast for longer-term planning.
- £50k grant funding – Secured funding to support investment and growth.
- Improved lender relationship – Built trust with the bank through accurate reporting and planning.
- Sharper business focus – Freed directors to concentrate on growth and sales.
Reflections from the Headstar Fractional CFO
“The business was in an attractive position with unprecedented sales, but lacked the expertise to manage its infrastructure, systems and processes. The company now has a robust structure, credible KPIs, accurate financial reporting systems and improved cash flow visibility.” – Headstar Fractional CFO
Find Out More
To learn how a Headstar Fractional CFO could help your business strengthen its infrastructure and maintain profitability during growth, visit our services page or get in touch with the Headstar team.
