PROMPT I business strategies
improving performance and growing businesses
Metal Fabricators
PROMPT played a key role in exploring
different turnaround options by working
with the Directors, Shareholders and their restructuring advisors Interpath, and managing the day to day cash flow.
The Companies are part of the Fablink Group,
a UK based manufacturer specialising in the production of metal pressings, operator cab assemblies, fuel and hydraulic tanks and \
complex structures, as well as ‘clean build’
of vehicle assemblies. Together, the Group
trades across six sites in Wolverhampton, Evenwood, Luton, Durham, Brixworth and Northampton.
As a tier one supplier, Fablink has built a
strong reputation in delivering comprehensive design and manufacturing solutions to some
of the world’s largest OEMs within the automotive, truck, off-highway, power
generation and material handling industries.
Over the last two years however, the Group suffered from a number of adverse events which cumulatively caused challenges to liquidity. These included delays in the
receipt of grant funding to support its relocation to a new site in Wolverhampton, and the insolvency of one of its customers which caused a significant bad debt.
Comment:
The directors sought to explore the options available to the Group, including its sale, investment, refinance and restructuring options.
All 521 employees of the Groups have transferred to the purchaser as part of the transactions.
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Client Comment:
“David & Anthony from PROMPT showed total focus and knowledge on how to deliver performance strategies, detailed financial forecasts and stakeholder management to deliver a great outcome for the Group. I highly recommend Prompt to any business undergoing challenging and complex situations as they bring clarity, focus and deliverability.”
Jeremy Faulkner
Group CEO
Specialty Chilled Foods Group
Chilled Food
Manufacturer
Zorba Delicacies is an important employer in
South Wales with over 400 staff, a turnover of £64M, selling humous and dips to major UK supermarkets.
SK Chilled Foods is based in Middlesbrough, employs 750 people in their peak period each year and will turn over £90M this year making onion bhaji’s, falafels, spring rolls and many other foods for UK supermarkets.
The Prompt Team worked closely with Zorba's and SK's senior teams at both businesses evaluating and underpinning the performance improvement programme needed as a result of high inflation on input costs and resistance by the supermarkets to pass on the costs. By working up detailed forecast models for efficiency savings combined with product pricing strategies we achieved an enhanced performance. The last piece of the jigsaw was to secure the right funding lines. This included invoice discounting and stock finance needed to fund the stock build due to the high sales seasonality of the group. After a detailed review of the funders market Prompt helped the Group secure funding through Leumi ABL.
IT Company
A successful IT delivery company with focus
in the hospitality sector experienced a
sudden downturn when Covid-19 hit.
The business needed to quickly pivot its offering to a broader range of commercial businesses.
This resulted in a period of low revenue, cash consumption and associated pressure from
the bank.Prompt worked with the Directors and shareholders on a turnaround strategy that involved cutting costs, combined with
sales-led recovery.
The high quality of service the business was able to deliver was a key element to the turnaround. After a matter of months, the sales forecasts indicated the business was on track to stem the losses and start to rebuild the balance sheet.
Comment:
"Prompt really helped us underpin the forward strategy and gave us the confidence to make difficult decisions, together with strengthening our communication with the Bank. I would recommend David and his team to anyone facing challenging business decisions.
Following the successful turnaround shares in the company have sold, which stands testament to the strength of the turnaround delivered."
Shareholder / Joint MD
Client Comment:
David and his team worked closely with the Board and provided strong communication with the bank and other stakeholders supporting the business during a challenging fund-raising period. Through weekly communication with key stakeholders changes to the working capital strategy were relayed ensuring all parties were up to speed and remained supportive.
PROMPT were easy to work with due to their clarity of thinking, straightforward communication, and strong belief in the Boards strategy.
We would recommend Prompt to others who need input when navigating through a difficult or challenging period within their business.
DIRECTOR
UK Gov ruling following PROMPTs appeals for Gov support...
Silicon Chip
Manufacturer
(turnover £100m)
The historic R&D activities of the company had been funded out of cash flow and no planned financing strategy was being undertaken by the company, so working capital was highly stressed.
Prompt was appointed by the board through a referral from the working capital provider.
We put together detailed cash reporting and forecasting to allow the directors to understand the position of the business and embark on a two pronged financing strategy and resize of the business.
The directors reduced the overhead base of the business and rationalised the project cost base to ensure it was able to reduce the cash burn, whilst simultaneously seeking additional working capital funding of £2m and longer term investment of £20m to fund and accelerate the future R&D activities.
Food Services
(turnover £45m )
The Group’s sales focus was pubs, restaurants and education establishments supplying schools and colleges. CoVid-19 significantly impacted sales as the core customer activity dramatically reduced.
The Directors could see a way to switch the sales
focus on to home delivery utilising its core facilities, pick & pack and van deliveries. A new website was launched with marketing through social media.
Prompt worked closely to help underpin the viability of the new plan and give the Group’s bank confidence that both the strategy was viable and could be profitable. There were a number of challenges to overcome including an aging debtor book which was funded from an invoice discount facility. In a matter of weeks the Group was performing well and as the lock-down eased and elements of their original business to pubs, restaurants and schools returned they continued to improve performance.
The quick reaction and resilience of the Directors were a key element to the successful recovery of the Group.
Client Comment...
"We were recommended to Prompt by our bank during the COVID-19 outbreak to help write and present detailed 4 year financial forecasts in order to submit a CBILS loan application.
Throughout the process David and his team took time to understand the business and provide useful guidance and advice to deal with the bank’s requirements. Their level of technical knowledge in developing integrated financial forecasts were invaluable and reduced the time taken to complete the application. They also provided clarity, reassurance and an objective viewpoint for the discussions with the bank.
It felt that Prompt had a genuine interest in the business and the management team and even after the loan application had been submitted and approved, still continue to stay in contact with the business to check on progress.
I would recommend Prompt to any business who need some external expertise and “another pair of hands” when writing and developing complex and technical business models."
Head of Finance.
Comment:
We were originally asked to help locate a new brewery site just over two and a half years ago and worked on this project to completion of the new brewery. ‘This has been the perfect project - as it revolved around beer! I couldn’t be prouder of what has been achieved, and look forward to sampling some of the new beers.’
Mark Bayley -
PROMPT's Property Specialist
Brewery
Wadworth is a family owned brewery founded in 1875 in Devizes, Wiltshire. The former brew house opened in 1885 and comprises a listed building in the centre of Devizes. The brewing process was ageing, originally built for larger brew runs and nearing the end of its economic life.
The Company asked PROMPT to identify an alternative brew house location within Devizes.
We quickly identified an alternative site within the town. Then worked closely with brewery process engineers and the Wadworth team to ensure the property could accommodate the new brewery. We subsequently made an offer and worked with solicitors to complete the purchase.
Working as part of the project team and over an 18 month period we obtained planning permission, appointed architects and various other professionals to deliver the new brewery site.
The new brewery allows Wadworth to be much more flexible with shorter brew runs and creates the opportunity to develop new products in a much more efficient and effective manner.
Supplier to Building Sector
(turnover £30m)
One of the largest PVCu – Double glazing fabricators located in the Southeast of England encountered trading issues which put significant strain on working capital. The position was made worse due to CoViD and its impact on the construction supply chain.
The Group has four core divisions:
New Build / Commercial / Retail / Trade, all of which were impacted through the various lockdowns in 2020.
A strategy was adopted by the Group to drive production efficiencies and reduced overheads whilst ensuring both product and service quality were maintained. Within months the turnaround strategy adopted was delivering both profit and associated working capital. The existing bank was keen to exit the business, so a key part of Prompt’s role was one of “stakeholder management” to ensure the Group was given sufficient time to deliver the business turnaround and secure the right funding to take the Group forward. Within nine months both objectives were delivered: the business turned around, once again profitable and it had been re-banked.
Client Comment...
"At the start of the first national lockdown in the Spring of 2020 I was introduced to Prompt by a national firm of accountants acting on behalf of our bankers.
Over the following nine months David and his team worked with the business to safeguard appropriate funding levels with our bankers, while at the same time developing complex financial models to support a refinancing that finally completed in January 2021.
During that nine month period, the Prompt team developed a deep understanding of not just our financials of the business, but of the people within it, and this was a key factor in securing the long term financial future of the business. Bearing in mind the difficult circumstances surrounding their appointment, they were a pleasure to deal with, and I would not hesitate to recommend them.
Paul McManus
Financial Director
Frozen Food Storage and Transportation
(turnover £8m)
Due to rapid growth and an expansion in activities the company needed a loan to plug a cash shortfall it was suffering.
Prompt was engaged by the board to review the cash plan the company were putting together.
Our report provided the detail and information for the company to achieve a successful application and presented scenarios to the board and lender showing likely outcomes based on various assumptions.
Public Health
Services &
Technology
(turnover £13m)
The historic R&D activities of the company had been funded out of cash flow and no planned financing strategy was being undertaken by the company, so working capital was highly stressed.
Prompt was appointed by the board through a referral from the working capital provider.
We put together detailed cash reporting and forecasting to allow the directors to understand the position of the business and embark on a two pronged financing strategy and resize of the business.
The directors reduced the overhead base of the business and rationalised the project cost base to ensure it was able to reduce the cash burn, whilst simultaneously seeking additional working capital funding of £2m and longer term investment of £20m to fund and accelerate the future R&D activities.
Client Comment...
"The executive team wanted to bolster and streamline their financial operations and overall governance so that it is well positioned for future growth, and were introduced to Prompt.
During their time with us they have introduced an enhanced and more detailed financial reporting structure through cashflow and forecast tools which are now being undertaken by our internal finance team while Prompt maintain a reviewing watch over this. They also undertook the position of finance manager following the retirement of our previous FD which enabled us to perform a steady recruitment process. Prompt have also been closely involved in advising us on the business strategy (which is closely linked to the forecast work) while helping us manage our stakeholders.
The whole process has been very smooth and Prompt have been extremely professional throughout, while maintaining the business’ best interests at all times. Their level of knowledge and know-how has been pivotal and the directors are of the belief that the business is in a stronger position now to go forward and secure growth capital for the international development plans."
Kishore Sankla CEO
New University
A new university focusing on Technology and Engineering.
The university needed a refreshed Business Plan reflecting a new strategy to secure increasing forecast student numbers and the associated
re-phasing of course accreditation and start dates. This to be backed up by financial forecasts to enable significant financial support.
Prompt secured the funding required. The University has adopted our business strategy and is set on a growth projectory.
Education
Independent Senior & Junior School
One of the leading independent schools in the South West was referred to us after suffering years of poor financial reporting.
A new management team had just been put in place and together we introduced strong financial and operational reporting which has allowed the school to unlock c£1m of financing from additional donations along with the release of historic monies which had not been utilised within the group structure. Alongside this we carried out a major rationalisation of the cost base to put the school in a much stronger position to go forward.