Case Study
Our client had a traditionally successful business that had posted losses in its accounts to December 2002 off the back of poor management control of the sales department and a rise in the base cost of metal used in their production process. A business recovery plan was put together by the directors but rejected by their bankers on the basis that they needed additional capital to accomplish the plan. They received a notice to repay all debt within 28 days from the bank without further negotiation.
ECS immediately carried out an analysis of the viability of the company and found that with the correct funding in place the company could easily return to profitability with a 12 month period following the comprehensive plan already constructed. The company assets were valued independently (which included a commercial premises, plant and machinery and vehicles) and a refinance package was put in place that repaid the bank borrowings in full and created a surplus of £110,000 in cash. The company also took advantage of a confidential invoice discounting facility we arranged that released a further availability of funds of £275,000.
This was all completed with a 21 day period and the client has recently sold the business to it competitor having post profits in excess of £500,000 in the last 12 months.
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