Overview
The business is one of the UK’s largest providers of industrial cleaning products and personal protective equipement (PPE). Following rapid growth during the Covid-19 pandemic, the company’s financial structure and processes were no longer fit-for purpose, and cash flow showed clear signs of being squeezed.
Challenges
- No strategic growth plan or senior finance expertise.
- Limited financial management and leadership capabilities.
- Strained relations with the bank.
- Stretched team and strained financial structure.
- Inadequate financial controls, systems and process.
- Unreliable management information.
- Weak cash flow position.
Our Approach
Our Headstar Portfolio Finance Director (FD) worked closely with the Managing Director to understand the key issues and achieve the following solutions:
- Established a process and regime for bringing the company’s rapid growth under control.
- Addressed the immediate issues to stabilise and improve cash flow.
- Reviewed the finance structure to understand knowledge and skills gaps.
- Instigated the recruitment of a Finance Manager to provide senior-level leadership.
- Put the business in a position to generate a much stronger balance sheet.
- Worked with the owner to focus sales force strategy on profit and cash generation.
- Supported the business to achieve a record sales turnover increase of 150% while retaining a stable cash flow position, including a £2m refinance package with the bank.
Results
Expert Advice
Headstar Portfolio Finance Director identified and introduced measures to address cashflow challenges.
Improved Decision Making
The business rebuilt its strategy to focus the sales team on profit and cash generation.
Turnover & Cash Flow
The business went on to record its strongest performance with turnover up by 150% and cash flow under control.
Successful Appointment
Headstar’s recruitment expertise utilised to attract and recruit experienced manager to provide senior-level financial leadership.
