Finance Director

The company was a private equity owned business manufacturing and supplying sterile, single-use plastic products for the laboratory market – the majority of products being destined for use in hospitals and university laboratories. The business was originally part of larger recently acquired company and the brief was to develop a Business Plan and establish a manufacturing unit as an independent stand-alone company in readiness for an exit. The annual turnover was £24m.

A Business Plan and detailed financial projections for 3 years were produced within 3 months of acquisition. Fixed cost budgets were produced from a zero base.

A Review of the standard costing system identified the need to recover further significant amounts of labour and overhead. In addition the labour and overhead required reallocation so as to be recovered over the correct the product ranges. A budgeting process was implemented that, for the first time, matched sales and production at product level and budgeted sales and margin by major customer.

Negotiations were undertaken with polymer suppliers resulting in cost savings whilst at the same time extending payment terms. Finished goods stock levels were significantly reduced. A review of the product range identified a rationalisation and a reduction in the number of stocked SKU’s that should further reduce stock levels and improve manufacturing efficiencies. Cash forecasting procedures were introduced.

A stand-alone Finance Department was created. An acquisition was made to strengthen the company’s position in the UK market and create substantial synergies.

A £2m grant was negotiated from the Welsh Assembly Government to support an £8.4m investment in plant, tooling and a factory re-location.