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CR CORPORATE SOLUTIONS

MORE THAN BUSINESS ADVICE

Professional Services – Ongoing Support and Guidance

CR Corporate Solutions was approached by the shareholders of a business that were facing a number of challenges and recognised the need for external support.  Craig Rattray had previously assisted the owners in an external finance raising exercise and was familiar with the sector and the people involved.  Company turnover was approximately £6 million, but was loss making following a difficult 12 month period.

The company had a number of challenges:

  • the recent resignation of the Finance Director, and forthcoming loss of other members of the Finance Team
  • ongoing intensive monitoring by the "intensive care" division of the bank
  • arrears of sums due to HM Revenue and Customs
  • the due diligence exercise being carried out by a potential trade partner
  • the requirement to prepare a "business plan" and financial projections, in addition to an annual budget for submission to the bank

CR Corporate Solutions worked with the senior management team over a three month period and provided the following services:

  • part-time Finance Director role, providing ongoing assistance to the Finance Department and senior management team
  • overseeing the relationship with "the intensive care division" of the bank, ensuring regular dialogue and assistance with information requirements of the bank
  • assistance with the due diligence process and the preparation of information and responses to questions and additional information requests from the potential trade partner
  • introduced various changes to the management reporting pack and preparation of financial information
  • assistance with the restructuring of the Finance Department, including a change in roles and responsibilities
  • assistance with the "business plan", financial projections and annual budget
  • advice in respect of HM Revenue and Customs arrears

The following successes were achieved:

  • ongoing banking support and extension of banking facilities thereby allowing investment required to increase turnover and profitability
  • preparation of a revised budget based on the changes and improvements made to the business during the previous three months, thereby showing a significant turnaround from a loss of c£250k to an operating profit in excess of £1 million.  The last quarter showed an operating profit of in excess of £250k.
  • deferral of c £500k of HM Revenue & Customs arrears over a 12 month period

As a result of the work done by CR Corporate Solutions including the change in financial management approach, the improvement in financial performance, ongoing banking support and deferral of HM Revenue & Customs arrears, the company renegotiated its arrangement with the potential trade partner and secured advantageous terms.  At this stage, negotiations are ongoing, and there are also a number of interested third party investors.
To be continued...

In summary, this case shows the flexibility of the CR Corporate Solutions model and the range of services and support that can be provided.  Our external support allowed the senior management team to focus on "running the business", safe in the knowledge that the key financial issues were being dealt with timeously and successfully.

We are always delighted to meet with good operational management teams to discuss how CR Corporate Solutions may be able to provide a range of flexible and cost effective services which allows them to focus on their strengths

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