Electrical contractors

The company has traded for more than 50 years. The current management team effected a buyout in 1999.

The business trades in a highly competitive sector. It is of a size where pressures are encountered from both larger corporates and also smaller partnerships or sole traders. These pressures have contributed to both a decline in turnover and margins.

At the request of the company's bankers, we conducted an independent business review during late 2006. We established that there was an excellent customer base with a niche focus on educational establishments and airports. However, there was no proactive marketing which meant that new customers were not been identified and targeted and existing ones were not being actively approached for new work. Furthermore, other deficiencies within the management team resulted in a build up of debtor collection difficulties. All these matters contributed to poor cashflow and pressure on the overdraft facility.

Following our involvement, we assisted management with a number of key strategic matters:

• We introduced a marketing consultant who prepared a proactive marketing plan;
• We secured a short term extension to bank facilities to ensure that sufficient working capital was in place;
• We secured a repayment plan for VAT and PAYE/NI arrears;
• We recommended a surveyor to assist with the sale of property and relocation of the business; and
• We advised on a succession plan for the ageing directors which will see the sale of the business.

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